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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
News Limited chief executive John Hartigan announced sweeping changes this morning to the Melbourne Storm board, including the sacking of chairman Rob Moodie and fellow independent directors Petra Fawcett, Peter Maher and Gerry Ryan.
Stephen Rue was appointed to the board alongside Craig Watt and Frank Stanton, the acting chief executive.
Hartigan said the report found 13 Storm players – including seven current members of the squad – had received payments or benefits from third parties that fell outside the cap.
He said there was no evidence to suggest the players knew the payments could contribute to the club breaching the salary cap.
The players were Billy Slater, Cameron Smith, Greg Inglis, Cooper Cronk, Ryan Hoffman, Anthony Quinn and Brett White and former players Dallas Johnson, Will Chambers, Mick Crocker, Matt Geyer, Steve Turner and Antonio Kaufusi.
Hartigan was critical that none of the players were willing to assist with the investigation.
“No evidence was found that these players or their managers and agents knew that these third party payments and benefits could contribute to a breach of the salary cap,” he said.
“Regrettably not one of the players agreed to cooperate with the investigation … in my view it’s totally unacceptable.
“I’m pleased to confirm that Craig Bellamy did cooperate with News Ltd’s investigators.”
Melbourne Storm’s salary cap breaches are significantly higher than the amount the NRL originally predicted, Hartigan confirmed today.
An audit commissioned by Storm owners News and conducted by accounting firm Deloitte has concluded the NRL club’s breaches tallied $3.17 million from 2006 until the end of this season.
Original predictions of the breaches were around $1.7 million.
Hartigan, speaking at a press conference called in Sydney on Thursday morning, said the Storm was almost $1 million over the cap in the 2010 season alone.
He said the club had no choice but to accept the harsh penalties imposed by the NRL, which included the stripping of two premierships and forcing the club to play for no points this season.
“Sadly the severe penalties handed down by the NRL … are in my opinion warranted,” Hartigan said.
“… The actions of a few in the club has stripped it of premierships.”
Hartigan said the findings of the report would be referred to police.
“Is it fraud? That’s something for the police to decide,” he said.
Hartigan said the main method used to conceal extra payments to players was through third party payments, from companies including the Unity Foundation and the McManus Group.
However he said there was no evidence to suggest these companies knew the payments could contribute to a salary cap breach.
Hartigan said the investigation identified five managers that were involved in cheating the system, who he labelled “rats in the ranks”.
He named former chief executive Brian Waldron as well as Matt Hanson, Paul Gregory, Peter O’Sullivan and Cameron Vale.
“How did this happen? The answer is we had some rats in our ranks,” Hartigan said.
“A small group of senior managers at the club, orchestrated and concealed the extra payments.
“All up the investigation has identified five managers where were either directly involved or were involved in transactions that resulted in the breaches.”
Hartigan said the scandal, including loss of income, sponsors and fines would cost News Ltd an estimated $14 million.
He said he empathised with the Storm’s fans and players and vowed News Ltd would stick by the club, promising a “new leadership direction”.
“The Storm and its fans have shown remarkable resilience and pride over the past three months and they will be premiers again,” Hartigan said.
“The next premiership will be won fair and square.”
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