The Roosters chose not to seek an exemption for Connor Watson, despite NRL rules allowing the club to request reclassification or an exemption on independent medical advice.
Watson was upgraded from category-two to category-one concussion symptoms after being concussed against the Dolphins in the preliminary final.
Under the category-one protocols, he cannot play or train for 11 days, ruling him out of Sunday's grand final against Newcastle.
It makes Watson the first player to miss a decider because of the 11-day concussion protocols.
The match would also have been his farewell appearance for the Roosters before he joins the Dragons next season.
Coach Trent Robinson said the NRL does not need to schedule a week off before the grand final, despite the "absolute devastation" Watson is experiencing.