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News Limited axes Storm directors
PLAYING NOW: Peter Maher and John Hartigan speak back-to-back on the Derryn Hinch program this afternoon in relation to the former's sacking and the latter's announcement regarding the Melbourne Storm 'cheating' being worse than first estimated.
UPDATE: Axed former independent Melbourne Storm director Peter Maher has hit back hit back at today's explosive Deloittes report into the club's salary cap breaches during the 2006-2010 period (report details further down the page).
Maher said he and fellow independent board directors did not co-operate with the Deloittes investigators simply because they were employed by News Limited, owner of the Storm and half-owners of the NRL.
Maher also confirmed the club would've been more forthcoming with information had the independent inquiry been funded by the NRL.
"We would have co-operated with a fully independent inquiry," Maher told 3AW a short time before he fronted a press conference. "We are not privvy to the detail of what's in that report," added Maher, before saying that he has not seen the Deloittes report and never will.
He also admitted the decision on whether to press on with a legal challenge he and other axed directors Rob Moodie, Petra Fawcett and Gerry Ryan launched against the NRL over the way it handled the club's sanctions for salary cap breaches, which included the stripping of two NRL premierships, may not go ahead.
"We persevered with the court case for one simple reason; the support base wants that," he said. "The support base wants to find out exactly what out history was, they don't want this lopsided transaction."
"Whether the court case goes ahead I am not in a position to answer that at this stage."
In one positive for Storm fans, Maher said there are scenarios where the club could keep players like Billy Slater, Cameron Smith and Greg Inglis.
EARLIER: The review into salary cap breaches by the Melbourne Storm has revealed the NRL clubs breaches between 2006 and 2010 total $3.17 million, according to Deloittes report paid for by News Limited which wholly owns the Storm.
The original estimates of the breaches announced by the NRL on April 22 amounted to $1.7 million.
News Limited chief John Hartigan today said the Storm will have to cop the penalties handed down by the NRL earlier this year which were; massive fines, the loss of all competition points in 2010 and the stripping of two premierships.
"The club engaged in wide-ranging and elaborate cheating and must take its medicine," Hartigan said.
Fairfax Radio is reporting the independent board members who have taken legal action against the NRL over the penalties - Peter Maher, Rob Moodie, Petra Fawcett and Gerry Ryan - have been sacked.
Mr Hartigan said 13 players, including seven current squad members, received extra payments.
They included Will Chambers, Michael Crocker, Cooper Cronk, Matt Geyer, Ryan Hoffman, Greg Inglis, Dallas Johnson, Anthony Quinn, Billy Slater, captain Cameron Smith, Steve Turner and Brett White.
Mr Hartigan said the total cost of the scandal, including loss of income, sponsors and fines would cost News Limited an estimated $14 million.
Mr Hartigan said he empathised with the Storm fans and players, promising a ''new leadership direction'' for the club.
He also said News Limited remained committed to the club.
Hours after Mr Hartigan fronted the media, NRL boss David Gallop had this to say on the findings released by News Limited today.
"The disclosures by the Storm's owner (News Ltd) this morning were damning in the extreme ... it's time for everyone to face the facts and focus on the club's future," said Gallop.
"Fact one; Melbourne Storm systematically breached the salary cap and they are well and truly over it today."
"Fact two; the NRL issued its penalties on the basis of breaches that the club and Dr Moodie openly admitted to. Dr Moodie, on behalf of his board, publicly accepted the penalties imposed."
"Fact three; the fact that the breaches go beyond even those admissions is an indictment on the directors who were overseeing the club and a chairman who signed statutory declarations that the club was complying with the salary cap."
"Fact four; the true victims of the cheating are not only Storm fans and the innocent parties at the club, but the other 15 clubs and their fans who lost the chance to compete fairly for players."
"Fact five; there is a future for Melbourne Storm and we are keen to work with the club's new management to do all that can be done within the rules to make it a successful one."
As well as owning the Melbourne Storm, News Limited also has a 50% share of NRL ownership.
Blog comments
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If this was a sydney team it would be swept under the carpet typical NSWRL sorry NRL
Josh Friday 16 July, 2010 - 11:51 AM -
Brendon Friday 16 July, 2010 - 12:47 AM. You need to remove the blindfold in which you insist on wearing. A blindfold is a form of denial. The people of NSW have no idea of what being a good sport is all about. Phil Gould calls Brisbane the heart of rugby league and why? Because they support their teams whether they are winning or not. The Storm players may have signed 2 contracts but its not up to the to ensure those contracts are legal and lodged with the NRL. What part of this don't you understand? Are you one of those Rabbitohs supporters who have been in denial for years and have a cupboard full of wooden spoons to boot? Get the hell over it. Wake up and smell the coffee sunshine.
Scott Friday 16 July, 2010 - 10:17 AM -
Sack Gallop and get News Ltd away from the game. The Storm will rebuild with or without the help of either of them. Keep it up Gallop and soon you will have no supporters. The codes a disgrace and your much to blame for it. Your a former lawyer for News Ltd. Of course they'll cover you. Go and audit all the other clubs, in particular the Bulldogs and Broncos and while your at it check out the Rabbits. They've signed players for 1/5 of what they were earning in England. Is that not a bit sus?
Purple Reign Friday 16 July, 2010 - 8:19 AM -
This stinks of corruption in my opinion. No one can honestly say that News Ltd and David Gallop had nothing to hide. Three months later we still don't know who tipped off the punters, hasn't that investigation has been called off by the NRL because apparently they don't have any evidence? Thats a load of crock. I believe Gallop was running scared when he found out the directors were taking both he and News Ltd to court. Moodie said back in April that he'd resign from his position. Hartigan said it wasn't necessary. Three days ago they asked for Moodies resignation. He declined and all of a sudden he gets the sack? Come on! Whats is it going to take to get it to sink into everyones heads that both News and Gallop knew the dirty laundry would be aired and they wouldn't come out of this smelling like roses. The directors took legal action when they were still at the Storm so therefore the court case can go ahead. It would have been different had they tried to do it after the fact. Take the NRL and News to court and expose them. They've been cheating the game since 1998 I believe. Hasn't so much has been swept under the carpet over all these years and its high time the paying members and supporters of the game were told the bloody truth?
Clinton Friday 16 July, 2010 - 8:07 AM -
Its unfair dismissal. Hartigan said none of the directors were involved in the rorting so why exactly were they sacked? Its a pretty easy question to answer. Both News Ltd and David Gallop feared going to court because they knew the truth would come out in a court case. News Ltd cannot be trusted. They are the most ruthless corporation across the globe. I believe they are known for their under handed methods of getting what they want. I hope the directors pursue legal avenues. The Storm and the game on the whole deserves to know exactly what has been going on behind closed doors. The NRL are a corrupt business who operates on double standards but yet they say they like an even playing field? Oh please! Gallop, you have been trouble since day dot. You have one set of rules for some clubs and another set of rules for others. Thats hardly an even playing field you goose. To the Storm. Keep your heads up. This is far from over. You will keep your 4 marquee players with paycuts. Gallop set the precedent in 2005 when he allowed the Bulldogs to do it. He's just done it again so the Dragons could sign Gasnier. He can't shift the goal posts when it suits him. Stand your bloody dig and fight these idiots running the show. It is afterall your workplace right.
Monica Friday 16 July, 2010 - 7:50 AM -
How did these players go and play state of origin and for australia, and i would imagine there finacial payments would have been talked about between themselves other players from other clubs, and the storm players not realising they were getting paid up to 150,000 - 200,000 more than other players from other clubs where all teams are on the same salarie cap. They say they new nothing bewildering. Just take the whole thing back to N.S.W we dont want it here.Systematic rorting.
Brendon Friday 16 July, 2010 - 12:47 AM
