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Cronulla's top-eight aspirations have taken a huge hit after their 38-10 NRL loss to Newcastle at McDonald Jones Stadium.

Three weeks out from the NRL finals, Cronulla's season is in danger of imploding after a 38-10 loss to Newcastle in which Chad Townsend was sent off for a horror shot on Kalyn Ponga.

The Sharks halfback was marched from the field by referee Ben Cummins after launching a shoulder charge at the Knights' three-try hero Ponga, who was taking a tap, midway through the second half.

Townsend is the third NRL player to be sent off this season, after Addin Fonua-Blake and Kevin Proctor.

The wild hit sparked a melee and forced the Sharks to play a man down, with Sharks coach John Morris unsure if Townsend's punishment fit his crime.

"It's a shoulder charge. There was force there and his arm was tucked. Whether it was a send off, I'm not so sure," Morris said.

"Maybe he could have stayed on the field but rules are rules.

"I feel for Chaddy. I don't think he's ever even been sin-binned in his career, let alone sent off.

"He's not one to play like that but he was trying to change the momentum of the game, shot off the line and trying to make a tackle and got it wrong."

Adding further insult, Friday's loss could cost Cronulla captain Wade Graham, Toby Rudolf and Braden Hamlin Uele some game time.

All three were placed on report for two separate lifting tackles.

The seven tries to two mauling at McDonald Jones Stadium further dented the Sharks' record in 2020 as they are yet to beat a current top eight team.

Increasing the urgency is the Warriors' snapping at their heels just four points adrift with a game in hand, making Cronulla's spot in the top eight up for grabs with three rounds of the regular season to play.

The Warriors can get within two points of Cronulla if they beat Parramatta on Sunday before they face the Sharks next weekend.

Missing a handful of stars, Cronulla struggled with direction but a litany of errors spoiled their chances when they found possession.

Young Knights winger Starford To'a scored two tried within the opening 17 minutes with Ponga also notching a double in the first half.

Queensland star Ponga was electric in attack, slipping through soft defence for three tries - his first NRL hat-trick - while Lachlan Fitzgibbon and Josh King also crossed.

"(Ponga) gets lots of wraps, and rightfully so for how talented he is, but he's a tough kid," Knights coach Adam O'Brien said.

"For what he cops, and he cops it every week - they're looking to take his head off and get stuck into him and he just keeps fighting the whole way."

Save for tries to Ronaldo Mulitalo and Connor Tracey, the Sharks were undisciplined and disorganised.

It was a huge bounce back for the Knights after last week's 30-point loss to the Warriors and all but cements their place in the finals.