A penalty is a punishment:

• a legal sentence, e.g. the death penalty
• used in the plural, penalties or sanctions, with the more restricted meaning of punishment for violating rules of procedure, or for abusing the judicial process.
• in sports; for example, in football (soccer) there is a penalty area, otherwise known as the 'eighteen-yard box' due to its size. Penalty kicks are taken from the penalty spot, twelve yards from the centre of the goal-line.
• penalty (rugby)