The four independent directors of Melbourne Storm say they will commence legal action against the NRL in the Supreme Court of Victoria.
The directors – chairman Rob Moodie, Petra Fawcett, Peter Maher and Gerry Ryan – made the decision unanimously, Moodie said.
Speaking at law firm Arnold Bloch Leibler on Friday, Moodie said the NRL’s decision-making process in applying the club’s heavy salary cap breach penalties was “not fair, impartial or transparent”.
“The NRL also did not provide the club with an opportunity to obtain independent legal advice before imposing penalties or to argue about the appropriateness of the penalties that should be imposed.”
Last month the Storm were fined over a million dollars, stripped of two premierships and had all premiership points for the 2010 season wiped after salary cap rorting over the past five years was exposed.
Moodie would not reveal who would fund the legal action, only saying they were supporters of the Melbourne Storm.
The Storm’s owners News Ltd have said they will not support or fund the legal action and they disagree with it.
A directions hearing has been scheduled in the Supreme Court on May 21 before Justice Tony Pagone.
“In making their decision (to pursue legal action), the four directors have sought independent legal advice and carefully considered the interests of the Melbourne Storm stakeholders – its members, fans, supporters, staff, players and sponsors,” a statement from the directors’ lawyers said.
“News Limited chairman and chief executive, John Hartigan, said yesterday the organisation acknowledges how ‘devastating this has been for the fans, players, staff and sponsors of the Storm’.
“These people, while not being the financial owners of Melbourne Storm, are the spiritual and emotional owners of the club.
“The directors of Melbourne Storm seek that the club should be provided with a fair, impartial and transparent process to deal with these very serious issues of breaching the salary cap and, if granted, the club will comply with the NRL’s process in a new hearing.
“Moreover, the club will abide by the outcome of any fair, impartial and transparent process at which the club is independently represented.
“And they will also encourage all of the Melbourne Storm stakeholders to do likewise.”
NRL chief executive David Gallop said on Thursday legal proceedings could weed out accomplices to the covert salary cap breaches.
“The club’s practices could not be any more under the spotlight and if the threat of legal proceedings is an attempt to divert attention away from that issue then it may have the opposite effect,” Gallop said.
“There is no doubt that any proceedings that take place could well help to identify if any Storm directors were aware of the club’s salary cap deception.”
Col of Melbourne
Guest
In any company, the owner must take responsibility for the actions of their employees, "We didn't know what was going on" would not have been an acceptable excuse in any industry. News Limited are into this up to their necks. Storm should be punished, but their owners should be thrown out of the game and their Channel rights taken away, just as our premierships have been. Hows that for controversial!!!!.
Ian
Guest
Col The sooner News Limited is run out of the game the better. I can believe your ascertain that News 'Dobbed' and may have even had a hand in creating the Salary Cap to sell Newspapers etc. News have previously used their influence to stop decent rugby league coverage in Melbourne. Check out http://www.rleague.com/db/article.php?id=36001 The four independent directors are exactly that - independent of News! There is massive support for rugby league (or any alternative to the usual rubbish paraded as sport) in Melbourne. Unfortunately rugby league supporters in Melbourne are reliant on bent media to get their news and sport. Why else do we have to wait until after midnight for coverage?
At Last!
Guest
Finally the Storm has grown some cajones here. The money over the cap was miniscule and the punishment meated out was done so as the head honchos of the sport know they can increase their popularity in the heartlands picking on a team hated by all and sundry.
Jeff
Guest
I agree with Col, there is something a bit smelly about the disclosures that are happening daily. it appears that News Limited are doing their best to keep the story going. Never trust a Newso.
Akazie
Guest
They cheated, take the punishment and rebuild for next year.
Col of Melbourne
Guest
The more crap that is published on Storm's demise, the more I am feeling that News Limited are actually stoking the fire to keep a good human interest story going. I cannot believe that as part owners of the club the didn't know and encourage what was going on, I also believe that it was News Limited that 'Dobbed' to sell millions of newspapers and get flagging TV coverage. any thought on this conspiracy!.
M1tch
Roar Guru
Silly silly silly, they should be using their money to put into the club, not waste time for legal challenges
Cugel
Roar Rookie
Brisbane got their competition point penalty commuted a few years ago, and that was an open and shut case of breaching the rules to advantage on the actual field, so anything is possible.