The financial survival of the Melbourne Storm has been thrown into serious doubt, with the club’s major sponsors pulling the plug.
The Storm’s two major sponsors ME Bank and superannuation fund HOSTPLUS both walked away from the club today, saying they were shocked by Melbourne’s behaviour.
ME Bank chief executive Jamie McPhee said they were extremely disappointed to discover the Storm had rorted the salary cap by concealing $1.7 million worth of player payments over a five-year period.
“As an organisation ME Bank believes in the principles of strong governance, transparency, integrity, and fairness and we seek to ensure that all of our corporate and community partnerships uphold these same values,” McPhee said.
HOSTPLUS chief executive officer David Elia said the club’s dishonest behaviour made their relationship untenable.
“We believe in rigid accountability and continuous transparency and the revelations about the actions of some members of the Melbourne Storm management contradict everything we believe in,” Elia said.
Their withdrawal will leave the Storm jerseys looking blank ME Bank’s logo removed from the front and HOSTPLUS from the back.
Fourth-tier sponsor, sportswear company SKINS also withdrew its sponsorship saying they were appalled by the Storm who had not conducted themselves with “honesty, integrity and class”.
“We understand that sometimes you need to give second chances but the level of systemic deceit is inexcusable and therefore we will not be continuing with our partnership,” said CEO of SKINS International, Jaimie Fuller.
SKINS had just launched an advertising campaign entitled `cheat legal.’
By 2pm on Friday, Melbourne Storm had removed ME Bank, HOSTPLUS and SKINS from their sponsors list and upgraded Suzuki and caravan provider Jayco as major sponsors.
Suzuki is set to meet with the club’s board next week.
General manager of their Australian arm Tony Devers said he was optimistic they could move forward, saying the “underlying culture is very good, its just disappointing a few individuals have created this situation.”
The Japanese car manufacturer is the sleeve sponsor of the Storm and fullback Billy Slater is the face of the Suzuki GV3 advertising campaign.
Meanwhile second tier sponsor KooGa is awaiting the findings of an NRL investigation.
Power tool maker Matika would make an announcement regarding its sponsorship in the coming weeks.
TIMELINE ON THE UNRAVELLING OF MELBOURNE STORM’S SALARY CAP RORTS
MARCH 27
* NRL salary cap auditor Ian Schubert raises concerns over payments to Storm players, including a third-party deal between skipper Cameron Smith and Fox Sports.
* NRL boss David Gallop announces a team will fly to Melbourne to exam the Storm’s books.APRIL 13
*1:35pm – Melbourne Storm chairman Rob Moodie and board become aware of salary cap rorting and launch internal investigation.APRIL 21 – WEDNESDAY
*Chief executive Matt Hanson, director Craig Watt and chairman Rob Moodie issue legal letter detailing accusation against the Storm and summoning them to a meeting at NRL headquarters.APRIL 22 – THURSDAY
*9am – Bookmakers begin suspending wooden spoon markets after a number of bets are placed on the Storm at 250-1 with single pay-outs in the tens of thousands of dollars.
*11am – Storm bosses meet with NRL boss David Gallop, chief operating officer Graham Annesley and salary cap auditor Ian Schubert.
*2pm – CEO Matt Hanson resigns.
*4pm – Gallop announces the Storm have rorted the salary cap by at least $1.7 million over five years.
– Storm stripped of their two premierships, three minor premierships and any competition points earned in 2010.
– They are fined $500,000 and will be forced to return $1.1 million in prizemoney.
– News Limited boss John Hartigan says the Storm engaged in highly-orchestrated, deeply deceptive fraud of which former CEO Brian Waldron was the “architect”.APRIL 23 – FRIDAY
*8am – Former Storm boss Brian Waldron resigns as Melbourne Rebels Super Rugby CEO after phone call with chairman Harold Mitchell.
*11am – Storm chairman Rob Moodie announces he offered his resignation but owners New Limited did not accept.
*11.30am – Major sponsor ME Bank pulls out.
*1.30pm – Major sponsor HOSTPLUS also terminates agreement.
*2.30pm – Melbourne financial controller Cameron Vale claims he isn’t the whistleblower who tipped-off the NRL.
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