Stormgate is actually a breeze not a storm
By Spiro Zavos, 11 May 2010 Spiro Zavos is a Roar Expert
- Tagged:
- Israel Folau, Melbourne Storm, NRL, Phil Gould, Rugby League, salary cap

Melbourne Storm coach Craig Bellamy overseeas a training session in Melbourne. AAP Image/Julian Smith
It’s been a couple of weeks since Stormgate was exposed. And what good has come from the so-called exposure? Stormgate, for all the rantings from News Ltd executives and their hired pens, is amounting to a breeze rather than a storm.
In my opinion, a great rugby league club has been dragged through the mire and its reputation destroyed. News Ltd, which part owns the Melbourne Storm and the NRL, has made of mistake of ignoring the Polish saying that “you don’t piss in your own soup.”
There is no evidence that the NRL will investigate other clubs for similar salary cap blow-outs even though, as the News Ltd boss Rupert Murdoch asserts, “we’re not sure we’re the only club involved.”
The day that Murdoch was saying this, the Sydney Morning Herald revealed that “a betting agency has suspended wagering on its NRL futures markets amid fears that the Gold Coast could be the next club implicated in a salary cap scandal.”
The Gold Coast boss Michael Searle rubbishes these rumours.
The article pointed out that it was a bookmaker who broke the Melbourne Storm salary cap story. Mention was made, too, to the ABC’s Four Corners program preparing an episode on salary cap rorting in rugby league.
The program is believed to carry an interview with Alex Simpson, who claimed to have provided a free house to the Gold Coast captain Scott Prince, in defiance of salary cap restrictions.
The NRL has cleared the Titans regarding these claims. It will be interesting to see what Four Corners comes up with regarding these matters.
At the same time, the NRL continues to reject the calls of players for a higher salary cap, and the considered plans offered by Phil Gould and others to make the cap fairer to the players and the clubs, with initiatives like rewarding long term one-club players for their loyalty.
Meanwhile, the SMH carried a poignant letter from a Melbourne Storm supporter about the way young Storm supporters have been called ‘cheats’ and assaulted in the streets of Melbourne.
The letter writer pointed out that it was the administration and not the players and supporters who ‘cheated.’ But it is the players and supporters who are being punished.
From what we already know of Stormgate, it seems like around $1.7m was spent in five years above the salary cap requirements. This amounts to about $300,000 a year above the salary cap of $4.1 million.
What did News Ltd and the NRL get for this extra expenditure?
They got a team that developed some of the greatest players going around right now. This has been a terrific bonus for the game at the State of Origin and Test level.
News Ltd and NRL also got a two-time premiership winning side.
They got a side that has/had developed a brand that was worth millions of dollars to the NRL. The Storm, too, while not capturing the hearts and minds of Melburnians, has become a solid rugby league franchise in an AFL-obsessed city.
To put all this in perspective, what would have happened in the administrators of the Storm had stayed rigidly within the salary cap and created a club with the sort of record, say, of Cronulla?
Answer: the franchise would have been moved in all probably to the Central Coast by now.
The point is that the Melbourne Storm is, or was, a great success story. A viable franchise established in hostile football territory, rather like the ACT Brumbies.
In my view, the rorting of the salary cap is justified by this success.
There a couple of other points to be made about the salary cap itself.
First, it is a restraint of trade which would struggle to remain in force, I suggest, if it is challenged by the Players Association in court.
The salary cap restrictions, too, are creating an exodus of great players from the game. Sean Fagan, the outstanding historian of the rugby league code, has pointed out that historically codes find it hard to stay on the top rung of sports if they lose their stars to competing codes.
The case of rugby union in Australia is a case in point.
Fagan reckons that rugby league is dicing with its future in Australia by creating star players who then go and play other codes for more money.
How many more great players like Israel Folau have to switch codes before the NRL rightly tries to protect them as an endangered species?
Finally, there is a great deal of hypocrisy surrounding the necessity for a salary cap to establish a level playing field for all the clubs.
The cap only applies to the players. It does not apply to coaches or officials. And so we get some coaches being paid far more than their best players, and getting top-ups from third parties.
Some former Brisbane Broncos, for instance, are still angry that the master-coach Wayne Bennett received this sort of favoured treatment when they were expected to take cuts in the salaries.
In my opinion, Bennett was and is worth every dollar the lucky club that employs him pays him.
But this same sort of largesse should apply, too, to the best players in the rugby league game.
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- Explore:
- Israel Folau, Melbourne Storm, NRL, Phil Gould, Rugby League, salary cap

Marcel Proust said | May 11th 2010 @ 3:43am | Report comment
“in my opinion, a great rugby league club has been dragged through the mire…”
A “great” rugby league club ? Seriously ?
I thought that it was just a failed attempt to take RL to the Melbourne masses. Peter Fitzsimons wrote in the SMH that he was in Melbourne at the time. Apparently, there was no outcry. No wailing. No gnashing of teeth.
Can it be a “great” club when it has few fans ? It can have success on the field, sure. But a “great club” ?
I’m not convinced.
Billo Boy said | May 11th 2010 @ 6:10am | Report comment
There were 20K at the no points Storm game on Sunday and many of them showed a lot of passion in regard to the NRL, referees and Gallop. Last night there were 3K at the Roosters game. Which club’s fans show more passion and support for their club?
Ken said | May 11th 2010 @ 8:20am | Report comment
A little off-topic but that was an amazingly poor crowd for the Roosters game last night. Given, it was a Monday night, Cowboys don’t pull well in Sydney (and neither do the Roosters actually) – but an official crowd of 6,500 is awful and even then I think they were counting the taxi drivers dropping people off.
TammyS said | May 11th 2010 @ 9:49am | Report comment
Yeah….Monday night football is usually bad for crowds. I always forget that its on. They should just get rid of it.
JamesP said | May 11th 2010 @ 9:15pm | Report comment
Except when its played in Melbourne as it was last night and 42k strolled in…
TammyS said | May 12th 2010 @ 8:40am | Report comment
We all know afl get better crowds. Im talking about nrl monday crowds in comparison to other nrl games on saturday, sunday or friday. The crowds are usually bad on mondays. It does rate really well on foxtel though
Paul J said | May 12th 2010 @ 9:43am | Report comment
The NRL love Monday night footy for the ratings on Foxtel. Will be interesting to see who gets the Monday night slot on the next TV deal.
Corey said | May 11th 2010 @ 8:20am | Report comment
there were just over 6.5k but that is dismal from a club with so much tradition. The Roosters are worse than the sharks in my opinion. At least the Sharks have supporters when they are losing, the Roosters don’t even have them when they are winning!!
Corey said | May 11th 2010 @ 8:15am | Report comment
Numbers of people doesn’t always result in greatness Marcel, many of us would agree that Sparta was a great military yet they never had more than 10k warriors. Its great for its achievements to date, take away the 2 premierships and you still have a great club, how many origin players, how many internationals, how many excitement machines have been produced there!
The Link said | May 11th 2010 @ 8:58am | Report comment
Quoting Peter Fitzsimons on Rugby League!!
The Storm go OK, Victoria has little or no history of RL. Hardly a failed attempt.
AA said | May 11th 2010 @ 6:51pm | Report comment
Peter Fitzsimons must have been asleep when he was here, The Melbourne Storm are now right at home after this, they are part of the furniture here in Melbourne. Anyone dare try to move them look out.
Billo Boy said | May 11th 2010 @ 6:07am | Report comment
It is interesting that ABC’s Four Corners has the passion to pursue a sports club and a football code over their own self imposed slaray cap “laws” while all around us there are countless failures in public administration that break government laws. It is not a criminal offence punishable by our courts to break a salary cap (unless you break corporate accounting laws). As Spiro says, there are other codes in Australia with no cap who are spending far more on players than NRL clubs. Why didn’t Four Corners pursue the Western Force over the Firepower dramas? Why didn’t Four Corners pursue the AFL and its clubs over the massive third party deals that were exposed in the last few months.
Spiro in Fagan’s story he says rugby stopped league’s spread by turning a blind eye to professionalism in Wales and other areas. Is that what happened? http://www.brisbanetimes.com.au/rugby-league/league-news/history-shows-once-talent-and-fans-leave-its-hard-to-get-them-back-20100508-ukv6.html
Son of a Gun said | May 11th 2010 @ 7:04am | Report comment
This story has ben done to death, i do not agree with your assertion that the Brumbies are in hostile territory.
Canberra was a rugby town before RL and more specifically the Raiders came on the scene.
Hansie said | May 11th 2010 @ 6:58pm | Report comment
Yet another example of Spiro’s ignorance of the Brumbies and ACT rugby generally.
Chris said | May 11th 2010 @ 7:33am | Report comment
“Hostile territory” – Rugby Union has been the Number one code in the Canberra region since the late 19th Century. It would be like calling the Brisbane Broncos a side set up in “hostile territory”.
Billo Boy said | May 11th 2010 @ 8:09am | Report comment
What towns were in the Canberra region in the late 19th Century? We know Canberra wasn’t one. Queanbeyan? Who did they play?
Brett McKay said | May 11th 2010 @ 8:16am | Report comment
most towns except Canberra actually..
mjpt said | May 11th 2010 @ 7:39am | Report comment
The salary cap opens up up about 25 other issues that can never be covered in one article, tv interview, or radio show. At the centre of the Australian crisis is that you have one player open to three different codes. THAT is unique. News ltd reported 8.2 billion in revenues last week world wide. They are the only winners in this mess. They own the TV staions, they own !/2 the NRL and a couple of the teams (storm, cowboys, broncos). They are the parent company of everyone, Murdoch’s attitude is like that of a father whose children are up to no good. He is so far from operations now that its a wonder he even knows what the teams are. 300k per year/ 5 years over the cap?? thats like a rounding error for these News ltd people. Rugby league is on the line here as a sport.
Billo Boy said | May 11th 2010 @ 8:08am | Report comment
News Ltd don’t own the Cowboys at all. The Broncos are a publicly listed company in which News has the majority. Super rugby is funded by News and just as vulnerable to the influence of News as the NRL is.
lemo said | May 11th 2010 @ 10:58am | Report comment
“At the centre of the Australian crisis is that you have one player open to three different codes.”
I know this is a little off topic but when will people realise even the best League players will not make the transition to AFL – there is no comparison in the skills required and as has been stated in other publications – is an insult to players who have spent years playing the game.
Its only a ploy by managers to pump up the value of their player with other league clubs or Union – surely no one is serious about it
Billo Boy said | May 11th 2010 @ 11:14am | Report comment
Andrew D & Sheeds don’t agree.
BigAl said | May 11th 2010 @ 2:27pm | Report comment
Sheeds likes ‘em very young !!!!!
lemo said | May 11th 2010 @ 2:29pm | Report comment
Think you will find they have their own agenda also
Its all about promotion
they might get a kick in a suburban comp – but not a chance at the elite level
There is just no comparison in the two games – Folau would be lost in even the lowest standard of game
mjpt said | May 11th 2010 @ 5:39pm | Report comment
I don’t disagree with your point, but the fact is that its happening. Hunt and Folau are the examples. It does not matter if they are any good, what a manager has to do is balance the AFL offer against the alternatives. Teams purchase on potential-playing wise and now for marketing. Folau went underground another week after he walked from 450k (broncos) to 700k (rebels) to then getting an offer 1m (west syd afl side) Its all codes lobbing grenades at one another!!He had to go away just to get his head together. This debate is graduating to a level where the players are in the tall grass and out of their depth.
Paul J said | May 11th 2010 @ 8:06am | Report comment
mjpt
News no longer own the Cowboys, but i agree with what you’re saying.
This is why the QRL must come on board and give the game it’s holy grail – the independent commission. How long can they hold out on the RL community? Will the fans have to kick down the door at the QRL and force them to get it over the line?
Billo Boy said | May 11th 2010 @ 8:12am | Report comment
The QRL has already voted for the IC. The hold up is all the legal transfers required of assets and intellectual properties. Nothing to do with the QRL.
Nicholas R.W. Henning said | May 11th 2010 @ 8:59am | Report comment
This article is perhaps the most irresponsibly argued story I have read on this site to date!
Stormgate seems to be experiencing a detente thanks to anti-authority rhetoric from the likes of Phil Gould and the writer of this article (Mr Zavos) just to name a few.
The Melbourne Storm like any NRL club is required to uphold its contractual obligations to participate in the NRL. The whole restriction of trade argument against the salary cap is a moot point, when the franchises of the NRL i.e. the clubs agree by way of a binding contract to adhere to. Currently the salary cap is also supported by the players association. Yes, it is possible for the salary cap to be challenged, but to date no court or arbitrary body has ruled to overturn the salary cap, therefore any comment on the salary cap servicing an illegal function is merely an assertion.
The fact that Mr Zavos warmly tells us that the Melbourne Storm have done so much for the game, and that we should just accept the whole affair for the greater good of the game is insulting to every other club that did the right thing, and Mr Zavos is subsequently condoning behaviour, which by the rules and contact applicable to NRL franchises is illegal.
People want to slap the authority of the NRL in the face because they think they know better e.g. Phil Gould, and Stormgate is a chance for these “backyard CEO’s” to try and convince us all that breaking the rules is okay. You be the judge but rules are rules, and there is no such thing as honest cheating. Nicholas R.W. Henning – Australian Author
Billo Boy said | May 11th 2010 @ 9:13am | Report comment
No Nicholas you are mistaken. Pointing toward how the Storm would have been a hopless failure had they not cheated is just Spiro making his point. Spiro and Gould and others are arguing the case for change and reform to the salary cap rules. I’m tired of so called Australians holding up the communist salary cap as some sacred scroll that can’t be changed. We live in a capitalist society and our sports should be just as free as everyone else to compete without being dragged down by the likes of Cronulla.
Nicholas R.W. Henning said | May 11th 2010 @ 9:22am | Report comment
Billo Boy, all good points I mean it. Much of the reform I am in favour of too. However, currently that reform does not form part of the NRL remuneration or incentives structure. But I agree that many of the suggested reforms would be valuable, e.g. loyalty incentives etc.
I tend to disagree with your Cronulla example, as less than three years ago they were a top four team, and they have a heavy payroll even today. The problem with Cronulla is performance.
st penguin said | May 12th 2010 @ 9:20am | Report comment
I’m not sure it’s that black and white Billo Boy. Look at English football for example where only three teams have genuinly contested that league in the last decade.
The rest are just also-rans, and some of those have ended up in administration.
Billo Boy said | May 12th 2010 @ 10:50am | Report comment
Yet the Premier League is known from one of the planet to the other. Put a salary cap on it and then watch it all crumble.
IronShark said | May 11th 2010 @ 9:12am | Report comment
“Melbournes success justifies their rorting of the salry cap” Are you serious!!?? The ends justifies the means does it? Oh well then, in that case, they probably should have put all their players on steroids as well. After all, it would all go towards helping them be a successful club in Melbourne. Actually, I take offense to them being referred to as a “Club” at all. They are a corporate entity, the Rugby League division of News Corp. Set up with an almost limitless supply of money and resources.
Your comparison of the Storm to the Sharks, whilst offensive, is actually quite apt – but you got it around the wrong way. After two premierships and four consecutive Grand Finals (the most successful RL team of the decade) what do the people of Melbourne hink of the Storm? Meh…No live TV coverage in Melbourne, mediocre crowd numbers and membership numbers well below what other “successful” Rugby League teams acheive (Brisbane, Souths, Dragons etc). Why don’t we consider your analogy with the Sharks from the other perspective. What if the Sharks had won two premierships and made the last four Grand Finals? Their home games would be sold out and memberships would be through the roof. As it is, despite their poor record, especially in the last few years, memberships have grown 50% and crowd numbers are up.
Let’s face it, Melbourne Storm are a failed experiment that burnt brightly for a brief time due to success acheived through illegal means. If they had to comepte in the bottom half of the table like other clubs, they would be gone already.
Nicholas R.W. Henning said | May 11th 2010 @ 9:42am | Report comment
IronShark, some passion, I like it a lot!
Some Melbourne faithful will argue that they have had good crowds this season, and in some previous seasons. But to add to your point, we need to consider their support over a longer period of time, and fully assess that, i.e. between 2001 and 2005 when times were leaner. I feel that part of the current support is based on anti-authority rhetoric, and “leave our team alone” bleeding hearts. But as you identify people keep putting the boot into Cronulla for the sake of their own team and various lines of argument.
Also, some Melbourne faithful will try and convince you of the success of the venture, but I have mixed feelings about objectively assessing Melbourne in this regard, as the team has had its share of problems prior to Stormgate, i.e. Rodney Howe and his steroids, and an inability to unilaterally generate income without a leagues club arrangement.
Hang in there IronShark, Cronulla has bounced back a few times in the 2000s! A grand final win would shut many critics up, and if my Tigers can do it, so can the Sharks!
Baz35 said | May 11th 2010 @ 11:18am | Report comment
The biggest shame in all this is the timing right before the opening of the new stadium. You only have to go to the MCG for the footy and then the old olympic park to experience the difference in quality of experience. Surely the Storm averaging 20,000 at their new stadium will see them more financially viable than the weaker sydney clubs at the very least
Nicholas R.W. Henning said | May 11th 2010 @ 12:05pm | Report comment
The new stadium is quite a blessing and a good point Baz35. The fact that the stadium is well presented, and has received two decent turnouts is positive for rugby league. Also, the new stadium has given people a different topic to discuss regarding Melbourne, which goes towards positive discussion after Stormgate.
chris said | May 11th 2010 @ 12:47pm | Report comment
I recall reading somewhere that they’ll be counting on getting to 30K at the new stadium to be viable….. that may sound like a lot but it’s not really a big crowd for a city the size of Melbourne…maybe they can do it who knows… the Storm have 10K rusted on supporters (ex-kiwis and ex-Sydneysiders) so they only need to attract another 20K… this year won’t be a very good indication – have to wait until next year to see how they go…
Nicholas R.W. Henning said | May 11th 2010 @ 2:01pm | Report comment
30K could be possible in Melbourne if AFL crowds are a measure to follow. It does seem a lot, but with crowds of over 50K to some AFL clubs games, it is certainly possible in the future. Nice insight Chris.
Billo Boy said | May 11th 2010 @ 2:17pm | Report comment
You lot do realise the capacity of the new stadium is 30K?
If 30K is the break even point for the stadium owners then a profit seems a extremely difficult ask. Will fans be sitting on the grass? On each others laps maybe?
JamesP said | May 11th 2010 @ 9:21pm | Report comment
20k for their first game at the new stadium against traditionally strong pulling opposition in perfect weather and with no AFL game in Melbourne (indeed noAFL game on FTA). It will be in the teens for the next game, and next year, when the rplaying oster is decimated and the club are not in their usual place of the top 4, I predict their crowds will not be better off than their average…which I think is under 15k anyway…
Massive drop of in TV audience too…from 300k on Friday night to 90k on Sunday….back to the teens when it resumes its normal midnight spot…
Andrew Sutherland said | May 13th 2010 @ 6:56pm | Report comment
“Let’s face it, Melbourne Storm are a failed experiment that burnt brightly for a brief time due to success achieved through illegal means. If they had to compete in the bottom half of the table like other clubs, they would be gone already”.
The Storm in its first 8 yrs reached the finals 6 times & won the premiership in the 2nd without illegal means. The rorting had no bearing on the ’06 (the yr they played the GF against a blatantly suspect star-studded Broncos team) and ’07 teams as they were mainly a bunch of rejects and youngsters. It was only after ’07 when syd clubs wanted them back, that they began to be called a superstar team – and why Waldron approached Gallop concerning a salary cap amnesty.
And they have played in the bottom half (in ’01 and ’02) and where did they go from there? – on to become one of the greatest teams of the modern era. Of course the rorting shouldn’t be condoned but i don’t believe it would have made a difference to the team’s success. The majority of it paid for the re signings of Inglis (late ’08), Slater (’09) and Smith (’09) but Slater has said he doesn’t want to play against the Storm, Inglis hates Sydney, and does anyone really think Smith would have ended up at the Titans?
And who says the fire has burnt out? The club has one of the highest memberships and a better attendance record than the some of the ‘great’ traditional clubs.
mjpt said | May 11th 2010 @ 10:46am | Report comment
The cap in isloation is a good idea. Problem is that it needs a context. There is no way that the framers of the cap could have known that the talent that they tried to control (players) were going to be subject to offers that sat totally outside their jurisdiction!! (AFL, Union in Japan, France, UK and Australia)However, the framers should have known what all great men should know- THAT THEY DON’T KNOW EVERYTHING!! thay should have left gaps so that amendments can be made to allow for modern day changes like we have. Meeting after meeting to talk is not going to get it done, by the time they have got through the legislation, folau will be gone with slater, thurston, smith and cronk in the dock as well eyeing other offers!! Nick Henning makes good points on Gould, I like the guy but executives have a totally different job to do then where he is coming from, they shape events, he is commenting on them. League is in the S..T, he should get in and work a shovel. What is clear though is that you are seeing the quality of NRL executive in comparison to their union and afl counterparts in Australia and overseas-and it does not make good reading…
Nicholas R.W. Henning said | May 11th 2010 @ 12:12pm | Report comment
I like the idea of more qualified executives too. Nice point mjpt. We have a history in the NRL of poor executives and their clubs suffering. The Melbourne Storm is one example, but the Bulldogs of 2002 and 2007 / 2008 come to mind, as does the 2009 events with Cronulla, and the Knights had a rough time about four years ago too. Leaders need to lead, bravo!
The man said | May 11th 2010 @ 1:09pm | Report comment
Rorting the cap is justified by this success……
Ends justifies the means……
Win at all costs…..
Taking out the opposition play maker is fine as long as you win, where do you draw the line Spiro
Cheating is cheating
Nicholas R.W. Henning said | May 11th 2010 @ 1:56pm | Report comment
The man, bravo, bravo, bravo! Spot on!