$3.17 million over is hardly a Storm in a teacup
By Steve Kaless, 16 Jul 2010 Steve Kaless is a Roar Guru
- Tagged:
- Brian Waldron, David Gallop, John Hartigan, Melbourne Storm, NRL, Rugby League
114 Have your say
So the results are in, and the Storm are an eye watering $3.17 million over the salary cap over the last four seasons, with a prediction that they would be $1.3 million over next season.
It’s a massive 80 percent over what was expected, and it’s also instant vindication for the hardline David Gallop took when handing down the initial punishments.
Gallop received plenty of abuse from the usual quarters, and from those in Melbourne, who have perversely blamed him for the crisis and claimed that his actions were “killing the game.”
Those handing out the abuse will be silent now, and it will be Gallop who’ll be asked to clean up another mess he didn’t ask for.
He has started by reaffirming the code’s commitment to the club.
The independent directors of the Storm have been promptly frogmarched.
Given the scale of the breaches, and their resistance to accept the punishments handed down, it’s probably only right they formed an orderly queue at the exit door.
Of course, their departure does mean that the Storm’s plans to move away from News Ltd have returned to the square marked “1”.
News Ltd’s John Hartigan claimed that the independent directors were sacked as a sign of “good faith” before moving on to talk about the need for concessions for the NRL so that the team isn’t four superstars and a bunch of “pub players”.
I’m not so sure about that.
Up until now, the Storm have been pretty effective at getting the message into the media that there was every chance they’d be able to balance the books and keep Slater, Inglis, Cronk and Smith.
A plan was already being drawn up, with rookies like Gareth Widdop, Justin O’Neill and Matt Duffie joining journeymen like Bryan Norrie (not sure how much he appreciates being called a pub player) in a side with the stars.
Suddenly it seems that it’s not that simple, and that the NRL will need to help out.
After the months of abuse Gallop has copped from south of the Murray, I thought he showed real restraint in agreeing to “work with the club” on their issues.
You can bet your last dollar there will be plenty of resistance from other NRL clubs to the notion that a club who so systematically rorted the cap are now assisted to keep their players.
One of these issues facing Gallop is what knowledge the players had in all this.
That they refused to co-operate with the investigators is a bad look, a very bad look. Although it was some blokes from Deliotte not the AFP.
The Storm scandal has now also arrived in Bondi after Roosters recruitment manager Peter O’Sullivan was named as being knowingly involved in the affair. The Roosters’ reputation of abiding by the cap has never been great, and you wonder whether the club will want to have O’Sullivan involved in future player recruitment despite his reputation.
Imagine the furore if the Roosters had landed Josh Dugan and then a week later we find O’Sullivan in the middle of the Storm fiasco.
Probably, most importantly, everyone seems committed to righting wrongs and “moving forward” – a phrase which is certainly in danger of overuse in today’s society.
However, it’s easy to talk about moving forward. It’s another matter to do so when you’re asking people to give up large sums of money.
Watch this space.
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- Explore:
- Brian Waldron, David Gallop, John Hartigan, Melbourne Storm, NRL, Rugby League

Sam said | July 16th 2010 @ 3:27am | Report comment
Man those people voicing their anger towards Gallop for the stripping of the Storm’s Titles are shutting their traps now.
bill baxter said | July 16th 2010 @ 6:56am | Report comment
Why condemn the players for not cooperating with the Auditors?. They are there to play football, not to answer countless probing questions from impassive, black suited investigators.
Willy said | July 16th 2010 @ 7:59am | Report comment
It is difficult to know exactly how the players and (more importantly, I believe) player managers were involved.
But it’s difficult to escape the feeling that if they had nothing to hide, there was no reason not to assist the enquiry.
I suspect the player managers have got together and told their players that they’re under no obligation to assist the enquiry and should keep their mouths shut – I reckon there were more than a few managers sweating bricks and looking to cover their own behinds.
Willy said | July 16th 2010 @ 8:01am | Report comment
“impassive, black suited investigators”
This is gold, by the way.
My brother and a couple of my mates work in audit with Deloitte, and I’ll be forwarding it on to them! Makes them sound like Will Smith and Tommy Lee Jones…
True Tah said | July 16th 2010 @ 8:37am | Report comment
Its not like Deloittes have powers to compel players to appear before them and answer the questions put to them.
At the end of the day, the players are not obliged to help anyone but themselves, so why should they assist in an investigation that (potentially) could make them look bad.
Willy said | July 16th 2010 @ 8:41am | Report comment
If you haven’t done anything wrong, why not take the opportunity to clear your name for good?
apaway said | July 16th 2010 @ 9:20am | Report comment
Possibly because their non-cooperation now makes them look worse.
Steve Kaless said | July 16th 2010 @ 10:44am | Report comment
Precisely True Tah, as I said they aren’t the AFP and we are also unware of how they were advised.
ilikedahoodoogurusingha said | July 16th 2010 @ 9:04am | Report comment
Yes, but they will not have that option with the Police or ATO………if they had nothing to hide they should have cooperated, I would rather answer questions from an auditor than a fraud squad detective.
Hutchoman said | July 16th 2010 @ 9:31am | Report comment
If I was in their shoes I would have enjoyed having an opinion from a firm like Deloitte that I had not acted improperly when the police and ATO come calling.
For whatever reason they chose not to and will now have to convince the police and ATO that “there is nothing to see here”.
Good luck.
Steve Kaless said | July 16th 2010 @ 10:44am | Report comment
They could certainly show them how a shredder works.
Paul J said | July 16th 2010 @ 8:01am | Report comment
Stil no evidence the players or player managers had any knowledge Waldron & co were rorting the salary cap.
Willy said | July 16th 2010 @ 8:05am | Report comment
As mentioned above, I work in accounting, audit and taxation and I reckon it’s only a matter of time until the ATO gets involved in all this.
Once they do, the involvement of the players and player managers – if any – in this whole debacle will be exposed.
Sorry Billy, Greg, Cooper et al – the ATO won’t let you hide behind your mother’s dresses. You’re going to have to face the music and answer the hard questions.
Watch this space.
damoinaus said | July 16th 2010 @ 9:26am | Report comment
the illegitimate payments were exactly that – shonky. brown paper bag, through the back door, under the table payments. i would highly doubt the players, unity foundation or mcmanus group were lodging the transactions officially with the tax office.
once the ATO start to delve into it, the players won’t have a leg to stand on. this isn’t a guy on $40k a year failing to lodge a tax return…this is big money we’re talking.
AB said | July 16th 2010 @ 8:23am | Report comment
No-one seems to be asking the question about the players, for mine they have been the ones who have benefitted the most, yet do not seem accountable. I would love to see a couple the following occur:
Where a player’s salary is different to what is reported
• The player’s contract becomes void and the player cannot play for the guilty club again, in this case Melbourne
• The players manager is banned for five years
• The club loses the maximum breach off their salary cap for double the period of breach
Do not punish the players at the club who have done the right thing.
Whilst I would not like to see the guilty players lost to the game, the game is bigger than the players and will recover, they are cheats and I personally don’t care if they spit the dummy and go.
Cheers
AB
damoinaus said | July 16th 2010 @ 9:32am | Report comment
it’s a shame the players at the club who weren’t involved are now looking for work elsewhere eg. Superleague and French Rugby. Such a shame. While the RL world focuses on the ‘BIG 4′, the other Storm players are being cast aside like they are dirt. The Storm shouldn’t be allowed to do that.
Totally agree, AB. The players on dodgy contracts should go back onto the market so other clubs can legitimately bid for them.
Brett McKay said | July 16th 2010 @ 8:29am | Report comment
Steve, what’s your thoughts on the Deloitte report being released under the guise of News Ltd Media Release??
I just wonder if the Deloitte report was as kind on News as the Media Release was??
Willy, maybe that’s a question for your connections, too…
Steve Kaless said | July 16th 2010 @ 10:46am | Report comment
My understanding was that wasn’t the actual report but only News Ltd’s interpretation of it.
Brett McKay said | July 16th 2010 @ 10:57am | Report comment
Steve, that’s exactly what is was, News Ltd’s interpretation. Don’t you think the Deloitte report should be the main source, rather than a potentially sanitised version with News logos all over it??
Jay said | July 16th 2010 @ 1:43pm | Report comment
Brett – as an auditor (i must stress that im not an auditor, for no other reasons other than distancing myself from that profession
), I believe there is an obligation to read any summary of audit report/finding that are prepared by the client for further distribution. If there is any inconsistencies, the auditors will make the client (in this case News) ammend the summary or make it known public that the summary report contains inconsistencies.
Im sure Deloitte knew News were intending to issue this medi relase and im sure the prudent thing to be done it the check this.
A little off topic, but what great advertising for Deloitte..
Dan said | July 16th 2010 @ 12:17pm | Report comment
Deloitte are also closely affiliated with news, as thier auditors and accountants… the whole thing was shonky from the start. why do you think they don’t want the court case to go ahead… News/Delloite and the NRL are so far in bed together, and nothing has any legally binding requirement to give evidence… a court of law on the other hand…
surely hartigan/gallop would be happy for the court case to go ahead if they had nothing that they were afraid of having to say in a court of law, under oath and cross-examination…
the whole thing stinks.
get KPMG to audit every club, and then have a royal commission into its findings… when people could possibly go to jail for misleading a court of law, everything will come out…
would love to hear JT talk about that conversation he had with Rusty and Holms a court about south’s salary cap under oath…
Redback said | July 16th 2010 @ 8:47am | Report comment
Funny how this news is big in NSW and QLD but little about it in the herald sun. Victorians do not care. So why waist the money on this club it will have little long term impact or success. a new side at central coast nsw or a second team in Brisbane would have a greater affect on league in Aus.
Redb said | July 16th 2010 @ 9:01am | Report comment
Hmmm….. Front and back page in the Herald Sun today. yep your right.
damoinaus said | July 16th 2010 @ 9:37am | Report comment
Yep you’re right redb, plenty of coverage in Victoria. It was the lead story in the local news bulletins last night and will be a major story tonight too I’m sure.
The difference down here is is that they’re really playing the ‘hard done by’ card to the hilt. They’re treating anyone that’s ever worn a purple tracksuit like they’re a saint, and they would never do any wrong. The media are portraying the Storm as victims and the NRL as bullies, when really, they’re only doing their job after the biggest con in RL history.
Tom said | July 16th 2010 @ 9:54am | Report comment
Which articles are you talking about? Most of the coverage I’ve seen in Melbourne has been very critical of the Storm.
Redb said | July 16th 2010 @ 11:17am | Report comment
Tom, I suggest you jump to pages 6-11 in the Herald Sun.
on a general note:
One thing that strikes me is that rorting of the salary cap until it was discovered was very good for News Ltd. They would have sold merch, crowds up whilst successful compared to the dark years (early 2000s).
Whilst the CEO and other admin officials would perhaps have benefitted from a salary increase, News Ltd has benefited from the success of two premierships, 4 GF appearances, as has the NRL. Its helped the ARL leverage the SOO in Melbourne and RL tests off the profile of the Storm which it attained illegally.
So hang them out to dry but many people and organisations related to rugby league have dined on that illegal success. Maybe the NRL/ARL should have been upfront and actually helped them in a non core market like the AFL has with its expansion teams.
It aint easy. This is perhaps is at the core, if you dont have on field success its hard to create momentum for the game in a non heartland area. Waldron knew he needed success to bridge the gap. Just as the Swans for a time sailed high on Sydney Harbour.
edit: the front page headline of the News Ltd Herald Sun “Rats Face Jail”
Willy said | July 16th 2010 @ 9:22am | Report comment
As an aside…
I happened to catch a replay of the 2000 NRL Grand Final – Brisbane v Easts – on Fox a couple of weeks ago.
Here is the Broncos team that day:
Darren Lockyer
Lote Tuqiri
Tonie Carroll
Michael de Vere
Wendell Sailor
Ben Ikin
Kevin Walters
Shane Webke
Luke Priddis
Dane Carlaw
Gordon Tallis
Brad Thorn
Kevin Campion
Whoever assembled THAT team under the Salary Cap is a deadset genius.
Yep… a genius…
Hmmmmm…
M1tch said | July 16th 2010 @ 9:28am | Report comment
and the cap was 3.25 mil in those days
hot dead chook said | July 16th 2010 @ 11:25am | Report comment
How about the 2006 GF team?
Justin Hodges
Darius Boyd
Brent Tate
David Stagg
Karmichael Hunt
Darren Lockyer (c)
Shane Perry
Shane Webcke
Shaun Berrigan
Petero Civoniceva
Sam Thaiday
Brad Thorn
Tonie Carroll
BENCH
Casey McGuire
Dane Carlaw
Corey Parker
Ben Hannant
Arry said | July 16th 2010 @ 12:59pm | Report comment
You have to have pretty good accountants now days to win the NRL
Corey said | July 16th 2010 @ 12:10pm | Report comment
Yeah true, but look after that year the Broncos lost Campion, Priddis, Sailor, Tuqiri, Brad Smith, and I think Walters finished as well and Ikin followed shortly after. So it was a premeirship bought almost. But I think there may have been something else going on. Although that was a large exodus the year later.
ilikedahoodoogurusingha said | July 16th 2010 @ 4:47pm | Report comment
And without causing more rumours etc…what is the link between Brisbane and Storm, the most dominant teams of the last decade…oh that’s right News Ltd.
apaway said | July 16th 2010 @ 11:23pm | Report comment
Not sure Brisbane have been that dominant. Sure, they’ve won 2 GFs in the decade, but that’s only 1 more than Newcastle, Roosters, Penrith, Canterbury, Wests Tigers and Manly. Given that the Storm have now officially won nothing, that means 7 sides shared 8 premierships.
Maybe this salary cap thing is working.
ItsCalledFootball said | July 16th 2010 @ 9:27am | Report comment
$3.17 million over the cap – wow, that’s more than double the whole salary cap for one A-League club.
hot dead chook said | July 16th 2010 @ 11:31am | Report comment
3.17 over six years (2006-2010) – average 500K per year.
Michael C said | July 16th 2010 @ 12:34pm | Report comment
HTC -
2006-2010 is 5 years, so, it’s about 630K per year. Still – - bad, but, all this bandying about of the $3million AGGRAGATE figure is a bit deceptive by NewsLtd seeking to provide good headline fodder.
ONe really wonders how many other clubs out there aren’t at least a good portion of that over?
And, if Inglis is being paid $575K is it??, then, that’s one really good player,….i.e. an Inglis, each year. Certainly helps.
The question NRL folk really have to ask though – is how much of a ‘bonus’ SHOULD the Storm have got to help attract/retain talent in Melbourne??
AFter all – - sending players from sunny QLD and Sydney to cold, harsh Melbourne flies in the face of Gallops ‘live/play local’ campaign against the AFL (that you might get drafted to ….god forbit….Fremantle, …..which, serioiusly is a really nice place!!).
I still reckon the Storm’s biggest mistake was instant success in 1999. That perhaps ensured they wouldn’t get the ongoing support (other than the NewsLtd financial prop) that they really needed.
Jeff said | July 16th 2010 @ 9:28am | Report comment
The team that Broncos beat ‘our cheaters in 2006 was even better. and Manly’s 2008 team wasn’t bad either. Yup they were that good the Cheating team never scored a point — Food for thought there hey!!!.
Rikki-Lee Arnold said | July 16th 2010 @ 9:36am | Report comment
Broncos 2006 team? You mean with the halfback next to no one had heard of?
The team at the time complied a few nobodies and a few superstars. Those nobodies are superstars now, sure.
But to compare the two 2006 teams is a bit ridiculous.
Storm had the more dominant player in most key positions apart from five-eight, props and lock. Broncos then went on to lose everyone due to not enough money… From that team Broncos now have four. Storm still have seven.
Willy said | July 16th 2010 @ 9:41am | Report comment
By the way – I’m willing to accept that these teams contained players who were just making their name, and so wouldn’t have been on anything like top dollar.
Lockyer and Tuqiri would almost certainly have been in that class. As would Minichiello for Easts.
But then… they also had Michael Hancock on the bench…
The Link said | July 16th 2010 @ 10:55am | Report comment
Manly beating a team that’s 500k+ over the cap 40-0 ………… the greatest victory in the history of RL, perhaps even Australian sport.
Springs said | July 16th 2010 @ 3:04pm | Report comment
I think they said that in 2008 they were the lowest over the cap of the five years. Between 200-300,000 over. And they had Smith out, so for that one game only, probably even game. And they lost 40-0! Maybe that is a sign of what MElbourne would have been if they didn’t cheat so much.
Jeff said | July 16th 2010 @ 3:31pm | Report comment
oe both sides EVENLY cheating?????.
Corey said | July 16th 2010 @ 12:21pm | Report comment
Jeff, I remember that GF well. Everyone talks about the try at the end by Tate as if Lockyer orchestrated it, but the truth is it was Berrigan who made the break and Casey McGuire who threw the ball over the top of his head when he was being tackled. That team only had Lockyer, Webcke, Petero and Tony Carroll as big namers. Even K Hunt was new then, and Berrigan wasn’t paid enough so he left next year. So that side was a pretty well averaged side in my books.
Springs said | July 16th 2010 @ 3:11pm | Report comment
Aye, they only had 9 Origin players that year, plus Webcke, Thorn and Carlaw who played Origin and Tests in the past.
sledgeross said | July 16th 2010 @ 9:32am | Report comment
Willy, look at the Easts team and tell me they were not over. At least the Broncos had players who publically said they preffered a smaller pay packet to stay in Brissy.
Rikki-Lee Arnold said | July 16th 2010 @ 9:37am | Report comment
Thank you…
Pete said | July 16th 2010 @ 12:41pm | Report comment
Rikki-Lee you’re not the same Rikki-Lee Arnold from Broncos media are you?
There are many PR types who hide behind alias on this site. It’s refreshing that you are open about who you are.
Rikki-Lee Arnold said | July 17th 2010 @ 5:22pm | Report comment
ha embarrassing.
Pete – firstly I am not a PR type. I’m an unpaid intern and a uni student. So I have no alias really. I need my name on both Roar articles and Broncos articles for my portfolio. But yes, not a PR type, I only write match reports. I won’t lie though I am a huge Broncos fan and very lucky to have been given the opportunity I got with their website.
Nice to be recognised though I guess…. thanks
Willy said | July 16th 2010 @ 9:38am | Report comment
Easts team that day:
Roosters
Luke Phillips
Matt Sing
Shannon Hegarty
Ryan Cross
Anthony Minichiello
Brad Fittler (C)
Adrian Lam
Ian Rubin
Simon Bonetti
Peter Cusack
Bryan Fletcher
Craig Fitzgibbon
Luke Ricketson
Not sure that’s in the same class as that Brisbane side.
Rikki-Lee Arnold said | July 16th 2010 @ 9:43am | Report comment
Yet Roosters were eventually caught for salary cap rorting. Funny that.
As odd as it is I never looked at the Storm team and though wow they must be over the salary cap. Salary cap is not something I think about a lot. Sure it all makes sense now. But my problem is, why is everyone out to get the Broncos?
Ever since the scandal broke all I’ve heard is Broncos were over for ’92, ’93, 2000 and now 2006. Didn’t know all you people knew what the Broncos players get paid….
And while ’92/’93 may be true, they are innocent until proven guilty. Thats the way I always viewed the Storm. Would appreciate the same respect
oikee said | July 16th 2010 @ 9:59am | Report comment
The Bennett factor also played apart in players accepting less money. Take alook at the dragons now. Started out a rabble, weyman a unwanted forward, bully, Boyd a winger, Soward a unwanted player, now look at them, Boyd pressing for Dally.M, Soward, hero worshiped and pressing for honors, Weyman, origin, and he brought back Gas from Union, and helped sailor reinvent himself.
Bennett was untouchable in Brisbane, and for good reason, the man is a genious. Not to mention how just his presense inspired the Kiwis.
Willy said | July 16th 2010 @ 10:03am | Report comment
I dodn’t mean to target the Broncos, Rikki-Lee.
I was genuinely just watching Fox Sports last week when this game came on and I was blown away by the array of talen on show.
I mean it was “Lockyer to Tuqiri to Walters to De Vere to Ikin to Sailor to Webke to…” On and on it goes – superstar after superstar…
In the current environment, it’s hard not to wonder just how they put that team together legitimately.