Stormgate could bring down other NRL clubs
By Spiro Zavos, 25 Apr 2010 Spiro Zavos is a Roar Expert
- Tagged:
- Brian Waldron, David Gallop, John Hartigan, Melbourne Storm, Melbourne Storm Salary cap, NRL, Rugby League
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Matt Orford looking dejected during the NRL Round 22, Manly-Warringah Sea Eagles v Melbourne Storm at Brookvale Oval, Sydney, Friday Aug. 8, 2008. Storm won 16-10. AAP Image/Action Photographics, Grant Trouville
Phil Rothfield, The Daily Telegraph’s leader of its rugby league reporters pack, had a terrific story on Friday about the last days and hours of Brian Waldron as a sports administrator.
My guess is that all the administrators of other NRL clubs who read the story would have shuddered a bit with the thought that their club might be next on the rorting hit list.
In the Rothfield story, Waldron comes across as a arrogant, bossy type of person, a smart-arse full of bluster and brutal charm, who will turn very nasty, a bit like a trapped rat, if things turn against him.
So there is Waldron earlier on in the week, when he still thought he was in the clear, on the phone constantly to Rothfield telling him ‘don’t make a big deal out of this but there are four very minor things they are looking for.’
As an aside, these lies give people involved in running things a clue why reporters tend not to believe the spin dealt out to them all the time.
Back to the chase, though. As it became obvious to Waldron that more than four minor things were being looked at and that explosive evidence of rorting had been discovered, the tone of the calls to Rothfield changed.
Rothfield suggests that Waldron was ‘panicking’. Reading the story I got the impression that Waldron had adopted a posture of defiance, the sort of defiance of someone who knows he is going down and is prepared to bring down as many other people as he can with him.
Waldron made three specific accusations: ‘There were people on the board who knew about everything that was going on.’
Accusation two: ‘What about xxxxx leaving us and getting paid $200,000 by sponsors zzzzzzz outside the cap by team yyyyyy?’
Accusation three: ‘This is a joke. All clubs do it.’
During my time as a lead writer for the SMH, I wrote many editorials about corruption within the NSW police force. I spent a good deal of time arguing that the ‘rotten apple’ theory, that the rogue cops were a small minority of the total, clean force, can completely wrong, and mischievous.
My argument was that there was systematic corruption in the police force, what was called ‘the joke’. The whole barrel was tainted with corruption, an argument that the Wood Royal Commission endorsed.
Now apply this analogy to Stormgate. The harsh treatment by the NRL of the Melbourne Storm and, in due course most probably, officials like Waldron seems to be based on the notions of the rotten apple theory. John Hartigan, the iconic chairman of News Ltd, talked about a couple of ‘rats’ in the ranks to explain why Stormgate had happened.
But what if Waldron is right? What if every club is doing, to a lesser degree presumably, what the Storm had been doing to rort the system? What if lots of people knew what was going on?
The SMH gave Andrew Stevenson the privilege of writing their front page colour story on Friday on the Stormgate affair. Stevenson, a rugby league tragic, is one of the best of the Young Turks in the SMH’s sports department. His excellent story carried the headline: ‘It’s happened before – and will happen again’.
This seems to endorse Waldron’s line that rorting the salary cap system is endemic among the NRL clubs (with the exception perhaps of the Cronulla Sharks who are too broke to even reach their salary cap limits).
This brings us back to Phil Rothfield. Underneath the article on Waldron, he ran another piece, which was more like an editorial, titled: ‘It’s time to sort this out – the clubs’ dirty little secret puts the very future of the game at stake’.
And what is the dirty little secret? According to Rothfield, who has been covering rugby league for 34 years and knows most of its secrets: ”Salary cap rorting has got so far out of control it’s almost time for the NRL to call for an amnesty.”
But can the NRL allow an amnesty after its draconian attack on the Melbourne Storm? And will the NRL try to isolate Stormgate by turning a blind eye on the rorts that all those in the rugby league game know are going on all the time?
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April 25th 2010 @ 10:33am
Back Door Benny said | April 25th 2010 @ 10:33am | Report comment
Well, Spiro I like your ambition!
Stormgate will bring down nothing. Just as the Fitzgerald Inquiry into police corruption failed to end corruption in the QLD police force.
The NRL and everyone involved will make sure that Waldron is used as a scapegoat. The Storm may even fight on and “win”. But league will go back to business as usual. You can be sure of that much.
April 25th 2010 @ 10:35am
Sam said | April 25th 2010 @ 10:35am | Report comment
The only team that will go down will more than likely be Melbourne Storm. This will allow rugby league to be more compact in NSW/QLD and strengthen its base. I think this might be a good thing for the NRL.
Melbourne will always be AFL number 1, daylight 2nd, and association football 3rd (in terms of football codes). Rugby Union will have its supporter base, but will really just be known as another rugby amongst the masses.
April 25th 2010 @ 10:42am
vinay verma said | April 25th 2010 @ 10:42am | Report comment
Spiro the salary cap rort highlights the passion league people,the fans and players,have for their sport. There is a cap and all clubs have to respect it. The Storm management chose to flaunt the rules and the surprising thing is that it has gone on for so long. The auditor should have uncovered this much earlier. The fans have every right to feel aggrieved, Sport is one of the last refuges from an increasingly commercial and compromised world. We expect our heroes to be squeaky clean. We are outraged when we find that someone like Tiger Woods has been selling caps and other golf paraphernelia under false pretenses.
Last month an English County player was investigated for match -fixing. Last week the IPL has been mired in conflicts of interest and allegations ranging from match-fixing to money laundering. A tennis player refused to play against another convicted of wrongdoing. Cyclists and weightlifters have been regularly exposed. Swimmers and athletes.Golf,I believe, is the only sport where players impose penalties on themselves.
Your point of systemic and endemic corruption has merit and points to a society with two sets of rules…just as Waldron had two sets of books.
Finally, David Gallop must be applauded for his action and one hopes that administrators, not just in League, but all sports realise that they are only custodians and not keepers of the game.
April 25th 2010 @ 11:23am
stuff happens said | April 25th 2010 @ 11:23am | Report comment
“Sport is one of the last refuges from an increasingly commercial and compromised world. We expect our heroes to be squeaky clean.”
Beautifully written Vinay.The problem as you & Spiro know very well is that professional sport is big business.This month BHP & Rio T are accused.Next month?
In the Hunter Valley north of Sydney massive open cast coal fields are in operation and local people are getting sick.The companies who make millions from these mines & the NSW state government which takes 1.5$ biilion dollars in royalties are doing as little as possible to help.
What has this to do with sport you say? Simply that the people who manage sport live in the same business world as an increasingly “corrupt” business and government environment. They play by the same rules; get away with what you can.
Spiro is quite right
And fancy News Ltd of all people lecturing anyone on business ethics.This is the company that in the UK bugged the phones of politicians & celebrities to dig the dirt on them.
April 25th 2010 @ 7:00pm
Danno1 said | April 25th 2010 @ 7:00pm | Report comment
Too true & a brilliant response. Once people said sport should be run as a business it invited exactly the wrong sort of people to run sport.
As pointed out News is the absolute last organisation that should whinge about being misled or corruption.
Maybe Goldman Sachs and the NSW ALP could sponsor the NRL? After all it would be a true reflection of societies current values ie. what’s in it for me,
April 25th 2010 @ 12:15pm
sheek said | April 25th 2010 @ 12:15pm | Report comment
Back in the days of the First Fleet (1788) we would laugh today at whay consisted a cxriminal. People jailed for stealing a loaf of bread & given a life sentence!
In a society that had become so unfair & unbalanced & an inability to bring equity to all, it simply went draconian.
Yes, the Melbourne Storm, or members of that club,committed crimes that affected all the people within the club, & the NRL acted with decisiveness. But now the question is whether sufficient thought was given to the ramifications of those tough sanctions, & whether other avenues of penalties were available.
By plugging one bad hole, many other holes have appeared elsewhere, now all requiring plugging. By assuring the integrity of its salary cap, is it worth the NRL losing melbourne Storm altogether? it’s now a real possibility.
I think everyone agrees the Storm deserve to be punished. But has it gone too far? And we don’t know for sure if all the other clubs are clean?
I believe in the salary cap. But obviously some tweaking is required to make it more equitable to all. There needs to be recognition of developing players; longservice to one club, etc.
I guess one lesson from this is that whille it’s hard enough to make a decision, it’s a lot tougher again to make the correct decision. I admire David gallop enormously for the courage of his decision to heavily penalise the Storm.
But a wise man also possesses the ability to reflect & revisit whether some of his decisions were too harsh & unreasonable, & make the appropriate adjustments. This story still has some way to go…..
April 25th 2010 @ 1:05pm
Doug said | April 25th 2010 @ 1:05pm | Report comment
Has anyone seen any figures on the Storms total player payments verses the other top teams total player payments in each of the years they cheated? So thats all club payments plus thirdparty deals plus for the Storm illegal above salary cap payments. I am curious how much of competitive advantage they actually got. So far I have only seen a total figure of $1million over 5 years without any comparison to how much other teams spend.
April 25th 2010 @ 2:48pm
Billo Boy said | April 25th 2010 @ 2:48pm | Report comment
Why should there be an amnesty? Where is the evidence of other NRL clubs rorting the cap?
There was no other club with the playing group that even comes to the Storm’s, so stop this b.s. that there are other NRL clubs doing the same.
If they were, then they would have stuck out like the Storm in the grand final wins column.
And where were all you all seeing knowalls last week? I didn’t read then of your claims that clubs are systematically rorting the cap.
April 25th 2010 @ 4:46pm
Doug said | April 25th 2010 @ 4:46pm | Report comment
Cheating the salary cap doesnt guarantee any level of success. Carlton in the AFL was way over the salary cap and was coming last at the point it got caught. But if every team is cheating the way Waldron has suggested, then I would have expected that a few more teams would have been caught by now. Melbourne has been being investigated for months now, are any other teams under the microscope?
April 25th 2010 @ 2:52pm
Billo Boy said | April 25th 2010 @ 2:52pm | Report comment
Why not Spiro go look at the Aust Super franchises and their 3rd party agreements for players. You’re supposed to all have a genetlemen’s agreement about those deals in the Super 14/15 competition, yet the Force and Rebels are pulling players away from the other three provinces.
April 25th 2010 @ 5:13pm
rugbyfuture said | April 25th 2010 @ 5:13pm | Report comment
actually, thats called proffesionalism, and theres no rules being breached. The rebels seem to be getting players based on more than money too.
April 26th 2010 @ 6:52am
Billo Boy said | April 26th 2010 @ 6:52am | Report comment
Well, I tried to tip you off rugbyfuture but you denied the reality. So now its in the Herald today
Private ownership prompts rugby to consider salary cap
GREG GROWDEN CHIEF RUGBY CORRESPONDENT
http://www.smh.com.au/rugby-union/union-news/private-ownership-prompts-rugby-to-consider-salary-cap-20100425-tlqi.html
THE Australian Rugby Union wants to introduce a salary cap system to stop spiralling player payments, despite the Melbourne Storm NRL fiasco. Describing the Storm saga as a ”wake-up call”, the ARU will closely investigate player contracts to ensure the five Australian provinces are not breaking the rules covering third-party deals. The recently formed Melbourne Rebels, where Brian Waldron served as chief executive until last week, will be included. Since the rise of professionalism in Australian rugby in 1996, numerous league players have been tempted to switch because union does not cap salaries. However, ARU chief executive John O’Neill said yesterday the introduction of private equity at the provincial level through the Rebels had prompted a rethink.
April 28th 2010 @ 5:48pm
Billo Boy said | April 28th 2010 @ 5:48pm | Report comment
RU far from innocent. News here today of salary cap abuse – http://www.guardian.co.uk/sport/2010/apr/27/premiership-salary-cap-tsar-warning
April 28th 2010 @ 6:11pm
sheek said | April 28th 2010 @ 6:11pm | Report comment
I don’t think any rugby fan would be stupid enough to say union was squeaky-clean. But then again…..!
I believe in the salary cap, as a necessary evil to keep costs down & ensure continuous competition. After all, it the nature of the beast that attracts us – the contest.
However, it’s clear the salary cap needs a makeover. The points system, mentioned in separate dispatches by Alan Jones & George Piggins, ought to be considered. The point system gives every player a playing value, & a club has to keep its stable of players within a certain number of points.
I won’t explain it any further here, except to say I think it has tremendous merit. Clearly, the economic value isn’t working, so perhaps a ranking system might be preferable.
It would be monitored by an independent body separate from both the controlling authority & the clubs.
April 26th 2010 @ 7:47am
Justin said | April 26th 2010 @ 7:47am | Report comment
“the Force and Rebels are pulling players away from the other three provinces.”
That maybe the case but you seem to be saying that they are the only ones. That is patently not the case. I suggest you have a look at how many players ACT, NSW or QLD have got off each other. Its the nature of the beast. Lets not get hysterical about the Force and Rebels pillaging other teams, thats pro football.
April 25th 2010 @ 2:57pm
Crosscoder said | April 25th 2010 @ 2:57pm | Report comment
I think you will find the new breed of pro administrator in the game such as the Greenbergs,Searles,Humphreys,Furners who have an affiliation or direct involvement in playing the game,are a tad more attune to their club’s responsibilities and the impost of huge penalties to get involved in deliberate cap rorting.
A Cowboy and his deputy Sheriff from another code,have come on board ,and played as though it was a shootout at the OK corral,and not worry about the fallout or consequences.
Wyatt Earp apparently knew little of the Bulldogs past cap issues ,and the massive penalties.
I suggest re Rothfield’s article,if any cap issues ensued,they would be non deliberate,and therefore no other NRL clubs would be brought down..
April 25th 2010 @ 3:33pm
jus de couchon said | April 25th 2010 @ 3:33pm | Report comment
Whats a rort anyway? Im really intelligent but Ive never encountered a Rort. Im guessing its some kind of buggering . Whatever it is , its not going down well.