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John Hartigan, chairman and chief executive of News Limited (left) with Chief Executive Officer of the National Rugby League David Gallop (centre) and Melbourne Storm Chariman Rob Moodie. AAP Image/Tracey Nearmy
No matter which code or club your allegiances lie with, all Australian sporting fans should have felt extremely saddened by the news of the NRL’s Melbourne Storm salary cap breaches that rocked Australia yesterday.
The severity of the punishments are unprecedented in this country and mark a dark day for sport – particularly for the fans of the club and code who have been cheated out of a fair sporting contest, and had their commitment to the game trampled on by the putrid greed of a select few.
Whatever your thoughts on the punishment, the consensus must be that the code should not rest until the perpetrators of this cover up and those who knew of it are thrown out of the game.
David Gallop may have been the target for critics of the game as it dealt with issues surrounding rebuilding following the Super League war, countless player misdemeanours and indiscretions and preparing the League for independence in a climate of expansionist threats from rival codes, but he has stood tall as his colleagues in the game continually let both him and the NRL down.
Considering he was prepared to make such an example of the Storm, let alone remain in his post following another catastrophe, is heroic in itself.
The implications of this saga will run deep, and not just in the NRL’s base.
For Rugby, the Storm’s catastrophe at first look appears to have swung the door wide open for the Super 15 expansion franchise, the Melbourne Rebels, to sweep into town and consume the Storm’s disgruntled supporter base.
The imminent departure of CEO Brian Waldron, all but implicated yesterday by chairman of News Ltd John Hartigan for his role when CEO of the Storm, is the only option for the franchise to distance itself from any link to the Storm, especially in a city where the differences between League and Union still need to be explained to confused Victorians.
In the process of creating their own brand and image, the Rebels can at least move on post-Waldron, with a weakened Storm now an easier target.
While a staunch divide may exist between Union and League fans in the eastern seaboard states, such a division is not as a fractured in Victoria, and it will be unquestionably easier for the Rebels to build a fan-base should the Storm – particularly its players and coach – be further implicated.
The AFL, meanwhile, will investigate player contracts at St Kilda during Waldron’s three-year stint at the club, with The Sydney Morning Herald hinting at possible irregularities in his dealings with players.
While the AFL’s Andrew Demetriou claimed the AFL would be prepared to strip premierships from clubs found breaching its own salary cap, one wonders whether they would really have that courage had, say, the Sydney Swans been in breach of the cap, particularly when comparing its own lukewarm salary cap punishments to its own clubs in the past.
Would the AFL have been prepared to all but sacrifice a market such as Sydney for the sake of making a point for fairness in its regulations?
It remains to be seen.
But this is what the NRL has done; risked the future of the code in Australia’s second biggest market (biggest sporting market?) for the integrity of the competition.
For football, questions surrounding the Storm’s sustainability will undoubtedly impact on A-League clubs, the Melbourne Victory and Melbourne Heart, with co-tenancy agreements in place at AAMI Park (the new rectangular stadium in Melbourne).
Like the Rebels, expansion side Heart will benefit from a damaged Storm brand in the intensely competitive Melbourne sporting market, even if it’s as intangible as a weakened Storm playing for nothing as the Heart ramp up their own campaign before their debut.
AAMI Park, the home of the Heart, is set to open with a League international between Australia and New Zealand on the 7th May 2010, a further attempt by the game to connect with Victorian sports fans.
But the Storm’s cheating could well condemn the NRL’s future in Melbourne, very sadly.
If players and coaching staff are implicated as knowing the goings on within the club and its secret payments to them, then the brand will be damaged even more severely than if it were a select few who could be removed like a tumor.
But how can they go on?
With nothing to play for aside from pride for the remainder of the season, the Storm will become touring pariahs in the NRL, mocked and jeered as cheats wherever they go, playing for nothing more than hopeful redemption.
As for the fans, how many will turn up to Etihad Stadium on ANZAC Day – a day the AFL owns in Melbourne – to see the Storm face the Warriors in what is now a dead rubber?
The crowd they can generate on Sunday may well be the first true indicator of whether the Storm is a sustainable franchise going forward.
And should they rebound into the coming seasons, will a Melbourne audience be interested in seeing a legitimately salary capped side squander in the mid-pack following the halcyon days of multiple premierships?
Again, it remains to be seen.
Is the bond really strong enough between fans and club?
Italian football giants Juventus, for example, were stripped of Serie A titles for match-fixing and sent packing into the second division, found redemption and the continued support of their fans. But they are a club of rich tradition with deep cultural ties to Turin.
The Storm doesn’t have that in Melbourne.
The punishment of no points for the remainder of the season may sound ludicrous when put into the context of playing on this season, but what else could the NRL do to a club who had so comprehensively rorted the system, including into this season with a $700,000 breach of its salary cap already?
Allowing them to continue this season, even with a zero points as of this round, was not an option, particularly with a squad of such gifted players that, as we now know, was only able to be kept together by breaking the rules.
The Storm, from the very beginning, were strangers in a strange land – an anomaly of a club born out a messy divorce of the Super League wars and sustained through the deep pockets of its custodians, namely News Limited, and the support of the NRL itself.
While it found its niche crowd in the Victorian capital, averaging around the 15,000 mark, it never threatened to topple even the weakest of AFL clubs in the winter sporting market.
But greed merchants corrupted the soul (and lets hope there are few of them) of a club that promised much.
The NRL deserves to be in Melbourne, just as the Storm deserves another chance under new leadership and with the scum evacuated from its offices.
Let’s hope they get the chance at redemption.
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April 23rd 2010 @ 8:24am
gingerbeer said | April 23rd 2010 @ 8:24am | Report comment
I originally felt sorry for the Storm when the story broke, but as more news come to light I realise how deep the problem is. It pretty apparent that it happens in every NRL club but not at this level. I think that it has been going on for 5 years indicates that its a little more wide spread than just the Storm. As for the players having no idea, that it just absurd, you have a pretty good idea what everybody is on and people talk of course they knew. So did Bellamy and all the administration. I think that Gallop knew as well but some one was going to blow the whistle. Why I say Gallop knew is that it has been rumoured for quite a while that this had been occuring. If I where a player I would be seriously looking at the Rebels next year. Maybe they should fold the club and / or move it to Qld. Start another club the 2012 season in Victoria.
April 23rd 2010 @ 8:46am
agga78 said | April 23rd 2010 @ 8:46am | Report comment
Get rid of salary caps in sport and play with an open market, then the only way to cheat is to bribe match officals or players which I doubt would happen in Australia anyway. People will say it would create a have’s and have not situation , where bigger supportered clubs will win everything, well are these sports League and Aussie Rules big enough as a code to have a truly fair and even competitions which don’t have salary caps, altered draws where clubs play some teams once and others twice, don’t have clubs in expansion markets who get extra money compared to other teams, no reward for finishing last, like getting the best 1 or 2 young players in the country.
All these contrived rules are only put in place to make a so called even competition, but they are open to cheating, Melbourne Demons for example did not want to win more than 4 games last season because they would lose the right to the 2 best junior players in the country, so even down the bottom of the AFL for instance, you can cheat and get a reward of the best young players in the game. This season those two players have been amongst Melbourne best players.
I follow football and hopefully when the A league is strong enough, they can rid themselves of the salary cap (there is only 3 in Assoication football) and be big enough for promotion and relegation, where poor teams don’t get a second chance and are rightfully demoted to a lower division. Football worldwide has a truly reward for success and punishment for failure system and the only way to cheat is to bribe people, it has happen before in Italy and Germany for instance, but for the most part football’s free open market diminishes the chances of clubs cheating, while salary capped competiitions open themselves up to abuse from selfish clubs.
April 23rd 2010 @ 9:51am
Springs said | April 23rd 2010 @ 9:51am | Report comment
Yeah and then Brisbane will turn into Manchester United and win the next 20 comps in a row.
April 23rd 2010 @ 10:00am
Lazza said | April 23rd 2010 @ 10:00am | Report comment
The EPL became the World’s most popular sports league during ManU’s dynasty? Did Rugby League die when St George were winning all those premierships?
April 23rd 2010 @ 4:30pm
Andrew Watson said | April 23rd 2010 @ 4:30pm | Report comment
The Salary Cap only supports poorly run administrations. Why shouldnt Brisbane be allowed to win the next 20 years. This would only be a result of thier good Sports Adimistration and Enterprise. Why is that so bad?
I’m a Tiger Fan and if the Tigers cant generate enough revenue to be competitive, they need to move to a new target market or close thier doors. The sooner the Sydney Clubs realise they cant survive in a national competition based in Sydney, I’m certain they will employ good administrators to advise them of what is best to keep thier football clubs going. Alternatively, they should go back and play in a second tier competition like the NSW Cup with thier old buddies Newtown and the Bears…
The current format of administrating the Salary Cap is based around PASSION, and there is no future in that!!!
April 23rd 2010 @ 9:52am
Lazza said | April 23rd 2010 @ 9:52am | Report comment
This is so right. Having a salary cap and drafts just encourage cheating and there’s much more going on than we’ll ever know about.
Aussie Rules and Rugby League used to have an open market system and both sports prospered. Sure, you had ‘dynasties’ and a few teams that dominated but the sports were just as popular. Smaller teams aren’t excluded from success either. North Melbourne are one of the smallest Melbourne AFL sides yet they dominated in the 70′s and 80′s thanks to some cashed up patrons. The only criteria you need is that clubs can only spend what they earn and can’t get into debt.
The alternative is to just have these scandals erupt every few years, premierships and history re-written until everyone loses interest.
April 23rd 2010 @ 9:02am
Warrick said | April 23rd 2010 @ 9:02am | Report comment
Speak for yourself, I think it’s freaking hilarious.
April 23rd 2010 @ 9:34am
M1tch said | April 23rd 2010 @ 9:34am | Report comment
still in shock to be honest, dont know what is going to happen way to early to see the impact this will have on the code in Victoria
Management has let the fans, sponsors and the game down – clean house and start again
April 23rd 2010 @ 10:19am
Fallen said | April 23rd 2010 @ 10:19am | Report comment
I’m a Broncos supporter but have admired the Storm’s strength over the years – this is gut wrenching and I really feel for the Storm fans, players and sponsors. Looking back – maybe the NRL, media and public should have asked more questions. As a comparison consider the teams that fought out the GF in 2006 – Broncos only have 4 players on their current roster from that game, Storm have 7 all of which have played (or continue to play) in origin or international teams. In terms of playing rosters I can’t think of another squad that had contained so many state and international level players over such a long period of time. Teams like the Bulldogs, Manly, St George and Broncos have been strong for many years but had had to deal with constant player turn over. My concern for the NRL is that this may just be the tip of the iceberg.
If I were the Chairman of an NRL club board I would
1) Call a meeting today
2) Give the CEO, CFO, any other execs or board members the forum to admit to any breach
3) Have them sign statutory declarations stating that they have not knowingly breached the salary cap.
4) Confess to any breach to the NRL today
In terms of damage to your brand it, would be less than the damage being felt by the Storm and (for your club’s sake) it might get lost in the noise. If a breach is uncovered in the coming weeks or months then you can expect and whole new level of outrage from league fans and the media.
April 23rd 2010 @ 3:11pm
Richard said | April 23rd 2010 @ 3:11pm | Report comment
I think there must be concern at the NRL that this is more widespread than just The Storm. Looks like their audit processes did not uncover what’s been happening over 5 years. Only when there is a change of office bearers does it suddenly come to light. The heavy ha\nded penalties are as much directed at the other NRL clubs as at the Storm. It’s a great risk for the NRL, but one they have to take if the integrity of their competition is to survive. Good on David Gallop. He has proven again that he is a man of exceptional courage and leadership qualities at a very difficult time for his organisation. By the way did you hear Gerard Whately on the ABC this morning. He believes that the club should no longer be able to use the term “Melbourne” in its name. The reason being, that association with the Storm will drive future converts away, irreversibly. This furore opens up a real opportunity for the ARU as they move in with their new Melbourne team.
April 23rd 2010 @ 3:28pm
Dogs Of War said | April 23rd 2010 @ 3:28pm | Report comment
There is no doubt that other clubs are cheatign the cap. Ian Shubert can only do some much with one arm tied behind his back. If they were honest about it, they would require players to submit tax declarations etc to the NRL. Ian only really skims the books, and acts as a mediator who determines what is counted under the cap. Unless they drop something into his lap like the Storm, Bulldogs and Warriors situations (Is there a Titans situation coming up? That I don’t think is finished yet), there is nothing much they can do.
That’s why the salary cap needs a rethink, with much more benefits built in. I really should write me first article for the website with how I see it working. I am sure there would be plenty of ideas forthcoming in the thread, and we could email the NRL and tell them thats how it should be done! Stop aiming the cap at helping the Cronulla’s of the comp survive, when it really should be aimed at the teams in the financial middle of the comp. Meaning that the clubs at the financial bottom, really need to lift there game.
As for the ARU and there new team. Honestly the game are miles apart on the field. The crossover of supporters is small. They may get a small leg up because of this, but it will really only be small.
April 23rd 2010 @ 3:40pm
Richard said | April 23rd 2010 @ 3:40pm | Report comment
Could be, Dogs. But Rugby Union is a running game a little closer to AFL than League. There’s also the broader international competition which has appeal. I think you may find that AFL supporters find Union easier to relate to once it begins to get more frequent exposure here.
April 23rd 2010 @ 4:16pm
Dogs Of War said | April 23rd 2010 @ 4:16pm | Report comment
Exactly my point though. AFL may dominate the town, but I am sure the big hits of the NRL appeal to quite a few. Not to mention that Union is hardly seen on Free to Air, except for Internationals (not that NRL is either, except if your a nightowl). Just don’t think it’s going to be that easy for Union.
April 23rd 2010 @ 4:25pm
hutch said | April 23rd 2010 @ 4:25pm | Report comment
surely you dont believe that rugby union is a running game closer to afl???? a kicking game maybe, but most certainly not a running game.
April 23rd 2010 @ 10:26am
James said | April 23rd 2010 @ 10:26am | Report comment
Very sad day for Australian sport. Greed is a poison in society.
April 23rd 2010 @ 10:42am
Mike G said | April 23rd 2010 @ 10:42am | Report comment
Couldn’t disagree more, James – This is not a sad day for Aus sport, it is a sad day for RL (& potentially AFL if it’s found Waldron had similar dealings at the Saints)…I’m just thankful he was booted (sorry, that’s right, he was allowed to resign), from the Rebels before anything untoward could happen (if it hasn’t already??) – Please don’t include all sports in this James, it’s RL only at this stage.
April 23rd 2010 @ 10:48am
James said | April 23rd 2010 @ 10:48am | Report comment
Any time fans get burned to this extent it’s a sad day for all sports fans because it shows how fans can get really hurt by a club and cheated.
This should resonate with all sporting fans.
April 25th 2010 @ 8:33am
Bill Baxter said | April 25th 2010 @ 8:33am | Report comment
How could Waldron have caused something untoward to happen at the Rebels. Union teams legally have a bottomless pit of funds with which to attract and keep players, so there is very limited opportunities for shonkies.
April 23rd 2010 @ 10:51am
James said | April 23rd 2010 @ 10:51am | Report comment
And seriously, who else feels so sorry for David Gallop? Talk about the hardest job in Australia!
April 23rd 2010 @ 10:59am
Something fishy said | April 23rd 2010 @ 10:59am | Report comment
Funny all this, makes you wonder that maybe New Limited wanted this to happen in order for them to have an excuse to pull the plug on the Storm.
They have been losing millions, I mean millions since the get-go and maybe their patience has run out.
I find it impossible to believe they did not know all about this. Anyone heard of internal audits being required on listed companies?
They knew all about it and this is just the way to get out of Melbourne town.
You have to say rugby league is in serious trouble overall. They have lost the Victorian market, so what is their broadcast rights worth now? Only New South Wales and Queensland, the rest of Australia is not into it.
April 23rd 2010 @ 4:29pm
The Link said | April 23rd 2010 @ 4:29pm | Report comment
News have not been losing millions.
What they put into the Storm they get back in TV rights.
RL in Victoria is wounded but not dead.
April 23rd 2010 @ 5:07pm
Rubbish! said | April 23rd 2010 @ 5:07pm | Report comment
Point is, the Storm lose MILLIONS, up to 10 million a year. What they get out of pay tv is a moot point. In any case, the Storm games won’t raise a cracker out of Victoria from now on.
What the NRL should have done before burning their entire structure down is investigate everyone. There would be half of the clubs that are rorting the cap. The whole league is a farce.
April 23rd 2010 @ 11:06am
Richard said | April 23rd 2010 @ 11:06am | Report comment
Waldron’s been incredibly stupid. The NRL may have underestimated what it takes to establish a code in foreign territory, but ii was up to Waldron to make them aware of this, negotiate for better conditions and set a leadership example for his club. Contrary to this he established a culture which exaggerated his success, made cheating acceptable, obviously silenced whistleblowers, and has dealt an unforgiveable blow to those players, fans and sponsors who saw them through the past five years. The NRL has shown courage in sticking by its principles. As a sports fan, albeit primarily AFL, I feel a terrible sense of loss for some reason over the devastation of the Melbourne Storm. I must say that if they show courage, deal with this openly from now on, continue to try even though in the short term there is no chance of success, and re-build with strong leadership and an ethical culture they could well earn back respect and ultimately succeed in Melbourne, despite this major setback. They will need great NRL support going forward. I hope they can do it. The Melbourne sports scene would be the poorer without the Storm and without local engagement in NRL. What a great shame that would be.
April 23rd 2010 @ 11:53am
JamesP said | April 23rd 2010 @ 11:53am | Report comment
I agree with most comments here that the punishement was mostly right, but playign for no points is very very harsh.
As to whether the Storm survive, well that depends on News Ltd and whether they want to contnually invest
Wonder what implications (if any) will this have to the next NRL TV rights deal. A Strong Melbourne storm is surely vital to this…
April 23rd 2010 @ 1:46pm
M1tch said | April 23rd 2010 @ 1:46pm | Report comment
If Storm arent around, a Perth team will be
April 24th 2010 @ 1:06am
oldtimer said | April 24th 2010 @ 1:06am | Report comment
the problem with a Perth team last time was the hours spent flying over there and back and having sufficient time for players to recover…
its not like an hour to melb or bris or an hour half to NZ.
the 5 hour flights drain you..
and oh yeah , the supporter base ….they were always lucky to get 5000 supporters….
ask MG mark geyer…he can tell you what it was like…
April 23rd 2010 @ 3:33pm
Beast-A-Tron said | April 23rd 2010 @ 3:33pm | Report comment
“…but playign for no points is very very harsh.”
Its not harsh, just stupid.
Clearly the NRL administration put no thought into this particular facet of the overall punishment.