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Melbourne Storm stripped of '07/09 NRL Titles for Systematic Salary Cap Breaches.

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  • 22-04-2010 8:20am
    #1
    toomevara
    Registered Users Posts: 5,772 ✭✭✭


    Astonishing news from Down Under. Melbourne have been found guilty of systematic cheating by consistently and deliberately breaching the salary cap to attract the biggest names in RL. A seismic shock for the game in OZ. They've also been stripped of three minor prems, fined 1.6 mil in Aus dollars and wont be allowed accumulate any points this season. It seems their success of the past few years has been built on serial dishonesty and, well.... straight up cheating....

    From The Australian today;

    Melbourne Storm Stripped of Two RL titles over salary cap Fraud.

    MELBOURNE Storm has been stripped of two NRL titles and three minor premierships for rorting the salary cap system in an unprecedented day for rugby league in Australia.

    The club has been found guilty of running two separate books, one detailing the players contracts showing they were complying with the NRL's salary cap and a second file that detailed payments made to players that should have been declared to NRL auditors.

    It was found Melbourne had cheated the cap by $1.7 million over the last five years, including approximately $700,000 in 2010.

    “The elaborate lengths they went to hide the payments was quite extraordinary.” NRL chief executive David Gallop told a stunned press conference in Sydney this afternoon to announce the stiff penalties for the salary cap breaches going back five years.

    The club has been one of the most successful in the league since entering the competition in 1998 and has appeared in the last four grand finals in a row, winning in 2007 over Manly and 2009 over Parramatta.

    Those premierships and the money won there as well as the cash paid for winning the minor premiership from 2006-2008 will now be divided between the 15 other clubs.

    Gallop said neither Manly nor Parramatta would be awarded the premierships for 2007 and 2009 and the record books would simply show that the NRL titles were stripped for those years. Melbourne's initial premiership in 1999 will remain.

    Gallop said that Storm officials had confessed to paying players outside the NRL salary cap.

    John Hartigan, chairman of News Ltd, publisher of The Australian, said several administrators involved in the fraudulent behaviour had been sacked.

    “News doesn't tolerate behaviour like this. I feel sick to my stomach,” Hartigan said. “While the penalties are unprecedented, I believe they are warranted.”

    News has propped up Storm financially since it came into the league.

    Melbourne has been stripped of its eight competition points from four wins so far for 2010 and will not be given any further competition points this season.

    It is the biggfest salary rort for the NRL.

    In 2002 the Bulldogs were stripped of 37 competition points and fined $500,000 for being $1 million over the cap that year, which was $3.25 million.

    The current salary cap for all 16 clubs is $4.25 million.

    http://www.skysports.com/story/0,19528,12196_6108354,00.html


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    #2
    IH77
    Closed Accounts Posts: 301 ✭✭IH77


    One of the biggest scandals in Aus sporting history! As a parramatta fan I am gutted that we lost to the cheats last year in the final and won't be awarded the title :mad:


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    #3
    toomevara
    Registered Users Posts: 5,772 ✭✭✭toomevara


    Yep, an absolute disgrace. Going to have massive repercussions. Just brings the whole game into disrepute. Do leeds get the World Club Championship back now?..:confused:


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    #4
    IH77
    Closed Accounts Posts: 301 ✭✭IH77


    toomevara wrote: »
    Do leeds get the World Club Championship back now?..:confused:


    I wondered whether they would be stripped of that as well, if they were I assume Leeds would not be given the title (in line with the NRL decision).

    But do superleague clubs have salary caps? If they don't then Storm could argue that salary cap breach not relevant in that case.


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    #5
    AdeT
    Registered Users Posts: 168 ✭✭AdeT


    IH77 wrote: »
    But do superleague clubs have salary caps? If they don't then Storm could argue that salary cap breach not relevant in that case.

    They do. There have been some (much much smaller) salary cap fines in SL.

    For some of the top clubs to remain under the cap, Leeds, Wigan, Saints and now Hudds (if you look at their players), there must be some very shrew money management going on in SL.


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    #6
    toomevara
    Registered Users Posts: 5,772 ✭✭✭toomevara


    IH77 wrote: »

    But do superleague clubs have salary caps? If they don't then Storm could argue that salary cap breach not relevant in that case.

    I was just being facetious about the WCC, frankly it means little in real terms, and no doubt the least of the Storms' worries! SL does have a salary cap and clubs, such as Wigan have been fined/docked points for breaches in the past.

    Indeed the more I read about this the more jaw-dropping it becomes. Its clear that the Storm maintained two sets of books, one fake to show compliance and one where the 'real' contracts were kept...absolutely amazing levels of deception and arrogance...This BBC report is pretty indepth;

    http://news.bbc.co.uk/sport1/hi/rugby_league/8636565.stm


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    #7
    mountain
    Registered Users Posts: 2,036 ✭✭✭mountain


    Its amazing that this has happened, Im glad there is a proper punishment for this,

    Im looking forward to the Roy and HG podcast on Triple M tomorrow, should be very interesting.


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    #8
    old_aussie
    Registered Users Posts: 3,410 ✭✭✭old_aussie


    hahahahahahahaha :D

    Haven't watched league since super league tried to put the ARL out of business.

    Came home and took the TV antenna down and it's still not been put back up.

    It's good to see the NRL going deeper into oblivion.

    Hope this destroys their fan base.

    Union must be rolling on the ground laughing and rubbing their hands with glee.

    NRL management is a bunch of gutless **** when it comes to scrutiny and even more gutless when it comes to enforcing the rules and laws regarding their players.

    NRL goes fron one embarrassment to another, continuing the downhill slide.

    Gallop and his gay boy administration are the template for failure.

    It's players are made up of drunks, street thugs and rapists.


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    #9
    toomevara
    Registered Users Posts: 5,772 ✭✭✭toomevara


    old_aussie: banned: two months


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    #10
    toomevara
    Registered Users Posts: 5,772 ✭✭✭toomevara


    mountain wrote: »
    Its amazing that this has happened, Im glad there is a proper punishment for this,

    Im looking forward to the Roy and HG podcast on Triple M tomorrow, should be very interesting.

    You just have to wonder how far this goes in terms of complicity; players, agents, coaches, boards??..and does it start and stop at Melbourne?


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    #11
    mountain
    Registered Users Posts: 2,036 ✭✭✭mountain


    toomevara wrote: »
    You just have to wonder how far this goes in terms of complicity; players, agents, coaches, boards??..and does it start and stop at Melbourne?

    Toomevara, I have felt that you are a reasonable man, but to be dragging devore and others into this is just taking things too far....:D

    The CEO at the time this started has gone to front up the new franchise for Super 15 in melbourne, wonder how long he will last there?
    http://www.smh.com.au/rugby-league/league-news/melbourne-storm-stripped-of-premierships-for-salary-cap-breaches-20100422-td91.html?autostart=1

    Its a pity that melbourne got up to this, NRL players have been getting into trouble, adn now this, while Im glad that melbourne have been found out, it does the general game no good.


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    #12
    toomevara
    Registered Users Posts: 5,772 ✭✭✭toomevara


    mountain wrote: »
    The CEO at the time this started has gone to front up the new franchise for Super 15 in melbourne, wonder how long he will last there?
    http://www.smh.com.au/rugby-league/league-news/melbourne-storm-stripped-of-premierships-for-salary-cap-breaches-20100422-td91.html?autostart=1

    Now that's an interesting point.....


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    #13
    amacachi
    Closed Accounts Posts: 23,316 ✭✭✭✭amacachi


    I was recently saying to my dad that I found it odd how well Melbourne were doing when it wasn't the usual home of the game, and maybe the NRL were turning a little blind eye to help them along, help spread the game...
    Turns out it was being done without the NRL's help, and this is just going to turn a lot of people off the game down under. Bloody idiots.


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    #14
    IH77
    Closed Accounts Posts: 301 ✭✭IH77


    So the Storm don't get any points this year. But what happens if a team loses to the Storm, does the losing team get the 2 points?

    The more I think about this the more livid I am. The Storm should be kicked out of the comp for the remainder of the season given these breaches have occured this year.


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    #15
    amacachi
    Closed Accounts Posts: 23,316 ✭✭✭✭amacachi


    IH77 wrote: »
    So the Storm don't get any points this year. But what happens if a team loses to the Storm, does the losing team get the 2 points?

    The more I think about this the more livid I am. The Storm should be kicked out of the comp for the remainder of the season given these breaches have occured this year.

    No, the Storm can still spoil things for other teams as I read it.


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    #16
    Stev_o
    Registered Users Posts: 9,249 ✭✭✭Stev_o


    Giving the Storm a defunct year makes no sense, if the NRL was committed to spreading RL in Melbourne then this decision all but kills it, who's going to continuing supporting a team that for this season can't do anything whatsoever. Mean strip them of like 10 points or some other handicap but basically destroying their fan base for this year just makes no sense.

    Honestly i bet that these dodgy account details are present in a lot more clubs in both League and Union.


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    #17
    toomevara
    Registered Users Posts: 5,772 ✭✭✭toomevara


    mountain wrote: »

    The CEO at the time this started has gone to front up the new franchise for Super 15 in melbourne, wonder how long he will last there?
    http://www.smh.com.au/rugby-league/league-news/melbourne-storm-stripped-of-premierships-for-salary-cap-breaches-20100422-td91.html?autostart=1

    He's been sacked, pretty fast moving stuff....

    http://www.boards.ie/vbulletin/showthread.php?t=2055891315


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    #18
    toomevara
    Registered Users Posts: 5,772 ✭✭✭toomevara


    Stev_o wrote: »
    Giving the Storm a defunct year makes no sense, if the NRL was committed to spreading RL in Melbourne then this decision all but kills it, who's going to continuing supporting a team that for this season can't do anything whatsoever. Mean strip them of like 10 points or some other handicap but basically destroying their fan base for this year just makes no sense.

    Honestly i bet that these dodgy account details are present in a lot more clubs in both League and Union.

    Its massively unfortunate that in all these scenarios its the fans who get it. I think about the folk from Melbourne who I met at Elland road at the WCC this year. Followed their team all the way from Oz and the impact something like this must have on them...

    TBH though Stev_o, i think the scale of this scandal is absolutely huge, the systematic, concerted and prolonged nature of it is totally unprecedented...

    Look I've no doubt there's always been fiddling around the fringes, blurring the lines etc...thats human nature, but this appears to be an order of magnitude above all that, and as I said in an earlier post, who else is is tacitly or overtly complicit in this? Surely agents, players themselves etc... must have been aware that all was not strictly kosher on some level...a huge can of worms has just been opened I think and I reckon the repercussions are going to be extensive. This could be the thin end of a very thick wedge....


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    #19
    Funkstard
    Registered Users Posts: 2,241 ✭✭✭Funkstard


    In Melbourne here. Talk about earth-shattering! I wonder does this begin and end with the Rebels however?


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    #20
    toomevara
    Registered Users Posts: 5,772 ✭✭✭toomevara


    Funkstard wrote: »
    In Melbourne here. Talk about earth-shattering! I wonder does this begin and end with the Rebels however?

    +1, my point entirely, I'm thinking dominoes here....


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    #21
    amacachi
    Closed Accounts Posts: 23,316 ✭✭✭✭amacachi


    I'd also be surprised if it's only Melbourne tbh. The salary cap does seem very low. Not that I'm condoning what they did in the least.


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    #22
    IH77
    Closed Accounts Posts: 301 ✭✭IH77


    Well they are looking at the WCC, but in terms of the prize money awarded to the Storm. Fair enough too.

    Link
    Leeds Rhinos will not ask to be awarded rugby league's World Club Challenge (WCC) title after champions Melbourne Storm were stripped of two of their NRL premierships for salary cap breaches.
    Rhinos chief executive Gary Hetherington says the scandal highlights the achievements of his English Super League club, who lost to the Storm 18-10 at Elland Road in February.

    "Melbourne Storm have been the dominant force in the NRL over the past five years and it is clear to see why now," Hetherington said.
    "I think if anything it actually elevates the achievements of our players. In 2008 we managed to beat Melbourne and this year we pushed them all the way."

    The teams met to contest the match between the Super League and NRL champions in 2008 and this year, after the Storm won the 2007 and 2009 premierships.

    On Thursday, the Storm were stripped of their NRL titles, plus three minor premierships, fined $500,000 and forced to repay $1.1 million in prize money after being found guilty of long-term salary cap breaches.

    But NRL chief executive David Gallop says neither losing grand finalists Manly or Parramatta will assume the titles of 2007 and 2009.
    Hetherington took a similar view of the WCC, but he expected the Rugby Football League (RFL) to make a decision regarding the $83,167 prize money the Storm took from the match.

    "I have noticed the punishment in Australia has seen Melbourne stripped of their titles in their domestic competition, but those titles have not been awarded to the teams that they beat and I think that is correct," he said.

    "Trophies are earned on the day of the game and we would not look to seek the awarding of the world title after the event.

    "However, Melbourne have also been stripped of the prize money they obtained during the period in which they were found guilty and I am sure this is something that the RFL will be looking into."


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    #23
    Xavi6
    Registered Users Posts: 40,861 ✭✭✭✭Xavi6


    Just watching the NRL Footy Show here and it's unbelievable how they had two sets of books - one to show the league and the other for the real outgoings.


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    #24
    amacachi
    Closed Accounts Posts: 23,316 ✭✭✭✭amacachi


    I just don't understand how there wouldn't have to be some kind of crossover at some point between the two sets of books though. It's amazing it's taken this long to catch.


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    #25
    IH77
    Closed Accounts Posts: 301 ✭✭IH77


    The Storm still have to play Parramatta and Manly at their respective home grounds this season. As an Eels fan that's almost worth flying home for :D


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    #26
    Xavi6
    Registered Users Posts: 40,861 ✭✭✭✭Xavi6


    The thing is, the players must have known they were getting their income from two different sources.

    Wonder will any action be taken against them.


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    #27
    amacachi
    Closed Accounts Posts: 23,316 ✭✭✭✭amacachi


    Xavi6 wrote: »
    The thing is, the players must have known they were getting their income from two different sources.

    Wonder will any action be taken against them.

    Was wondering that myself, but would there be any chance they were just getting paid from the hidden books?


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    #28
    IH77
    Closed Accounts Posts: 301 ✭✭IH77


    reports on NRL.com say that the NRL are blaming the officials, not the players. However there is also talk of a possible police investigation which could change that I suppose.


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    #29
    toomevara
    Registered Users Posts: 5,772 ✭✭✭toomevara


    IH77 wrote: »
    reports on NRL.com say that the NRL are blaming the officials, not the players. However there is also talk of a possible police investigation which could change that I suppose.

    If this ends up in the courts it quickly becomes a whole different ball game...As Xavi said earlier the number of people who had to lend at least tacit support to this must be quite far reaching...


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    #30
    couerdelion
    Registered Users Posts: 2,910 ✭✭✭couerdelion


    I think the punishment is harsh in respect to nothing to play for this year, but I'm guessing that they will be still over the cap if players were being played from two sources(?)Hope Leeds get the World Club challenge trophy and the £50k!


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    #31
    thomond2006
    Registered Users Posts: 45,433 ✭✭✭✭thomond2006


    I don't follow RL but this is a fascinating case.

    Is the club's future in doubt?


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