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
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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


May 11th 2010 @ 2:15pm
Gob Bluth said | May 11th 2010 @ 2:15pm | Report comment
I’ll be another to ask in amazement, The Brumbies? Hostile territory??
Good to see you taliking up the SMH again Spiro, however I really hope the Four Corners special has more than just an Alex Simpson interview. It’s already old news, has already been investigated and the Titans already cleared.
the ABC journos will need more to avoid the story looking like another attempted hatchet job on rugby league.
May 11th 2010 @ 2:51pm
BigAl said | May 11th 2010 @ 2:51pm | Report comment
This whole ‘Stormgate’ affair is becoming a classic media war ! – i.e. Fairfax V News Ltd.
I actually found out whilst reading an article on this in The Age , that Rebecca Wilson is the partner of John Hartigan, a News Ltd. honcho !
– ie ‘Nudge nudge wink wink – Rebecca Wilson – nudge nudge wink wink – sleeps with News Ltd boss – nudge nudge wink wink !!!!!!
May 11th 2010 @ 3:42pm
Terry said | May 11th 2010 @ 3:42pm | Report comment
I think that the Storm are a bunch of cheats, the NRL should be force the Storm to employ a whole new management structure, including the coach. I am so sick to death of this storey.Im f**king pissed that the Storm can play, take points of other legitiment teams. They should be banned for the season and fined alot more, the Storm supporters are angry at Gallop but Gallop is hardly to blame. The storm supporters should talk with thier feet the Storm dont deserve any support. I feel ashamed that the NRL is dragged through the mud on this AFL, Rugby and A – League must be laughing at us. What is more concerning is the allegations made by others stating that all club have breached the salary cap. Where does this stop? and why didnt the NRL sue those people who made the allegation e.g. Jason Taylor?
I think that all clubs should come clean, lets stop the rot because I dont want another scandal this size again. The rumours are still out there and they need to end for the season to move on.
May 11th 2010 @ 3:49pm
Gob Bluth said | May 11th 2010 @ 3:49pm | Report comment
I’m with you on Taylor, Terry. He is a dog. The herald did a big puff piece on how he was one day hoping to coach again, what a champion bloke he is, how relaxed he is…and then the next day rolled him out as a member of staff. Puh-lease.
Since then he can’t keep himself out of the spotlight but trying to be the big dobber. He’ll never coach again, not only is he a rat but plenty of the stuff which he got upto at Souths has never come out in the papers and if it does he can kiss goodbye any remaining creidtibility he has left.
Murdoch is just bizarre, does he honestly follow the NRL closely enough to make those statements or it is just a case of News Ltd spin. I can hardly see Rupert chatting to Wendy Deng about the how the Eels must be cooking the books because they signed Justin Poore.
May 11th 2010 @ 4:46pm
Terry said | May 11th 2010 @ 4:46pm | Report comment
But if Murdoch and Taylor are making these claims, surely the NRL or the clubs have a right to sue.
But I have a feeling they wont because of what it will uncover.
Hence my call for every thing to be bough out in the open and stop the rot
May 11th 2010 @ 6:14pm
Jerry said | May 11th 2010 @ 6:14pm | Report comment
OH GOD WHY DO PEOPLE INSIST ON USING THE PHRASE “RESTRAINT OF TRADE” WHEN THEY DON’T KNOW WHAT IT MEANS?
A salary cap is not a restraint of trade.
May 11th 2010 @ 9:17pm
Tom said | May 11th 2010 @ 9:17pm | Report comment
Agreed. The salary cap can only be considered a restraint on trade if it is beyond what is considered ‘reasonable’ for the good of the organisation. Although ‘reasonable’ is obviously a subjective term, considering some clubs don’t spend their cap out because they can’t afford it, I think the NRL would be able to mount a fair case that the salary cap is reasonable and necessary to preserve the competition as it stands.
Legal precedent from the USA suggests that caps are not considered an unreasonable restraint on trade. (http://epublications.bond.edu.au/cgi/viewcontent.cgi?article=1009&context=slej). The crux of the matter is that the NRL would be a rubbish competition without the cap. Peter Fitzsimons last weekend said that Manly didn’t win inordinate numbers of premierships despite spending more on players than anyone else before the introduction of the cap. He craftily neglected to mention that before the cap, only 3 clubs won the title in the ’50′s and 60s respectively (not to mention the 11 year St George rein of terror), and 4 in the 70s and 80s. However, 7 clubs won it in the 90s and 8 in the 00s (and probably would have been 9 if not for the Storm).
May 11th 2010 @ 6:33pm
sledgeandhammer said | May 11th 2010 @ 6:33pm | Report comment
Spiro is quite right, this whole fiasco is a storm in a teacup. Not all rules are fair and not all laws are just, often they are created by those in power to suit their own needs.
But my overriding view is that all this NRL naval gazing has become extremely boring. Finally the NRL commentary has become has banal as the AFL tragics on the Offsiders who banter incessantly about gossip an innuendo each Sunday morning.
May 11th 2010 @ 7:05pm
Hansie said | May 11th 2010 @ 7:05pm | Report comment
It’s hard to describe Melbourne as a great rugby league club when it requires a massive annual subsidy from News Ltd just to survive and blatantly broke the rules to win 2 championships. I think any club with such an advantage would be successful. It’s also worth remembering that had there been no salary cap, the richer clubs such as Brisbane and some of the rich Sydney clubs would have long ago picked the eyes out of the Storm. The salary cap, or more specifically breaking the salary cap, was what allowed the Storm to stay together and be successful.
May 11th 2010 @ 11:32pm
Stephen said | May 11th 2010 @ 11:32pm | Report comment
The true test of the NRL administration will be how consistently it treats any comparable wrongdoing by another club. One thing is sure: many interstate club fans, chafing at being beaten at their own game in such an attractive fashion by the Storm, have gloated at their downfall and have exaggerated their own clubs virtues.
May 13th 2010 @ 7:20pm
Jim Wilson said | May 13th 2010 @ 7:20pm | Report comment
Storm doing well on the box:
http://assets.astra.org.au.s3.amazonaws.com/1c8ad34068255b6d853dff505b5bf0ff/ASTRA-Ratings-for-Week-100425(2).pdf
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