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Melbourne Storm breach worse than first thought

14th July, 2010
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Melbourne Storm’s NRL salary cap breaches reportedly amount to nearly double the amount that owners News Ltd predicted.

An audit commissioned by News and conducted by accounting firm Deloitte has concluded the NRL club’s breaches tallied $3.2 million from 2006 until the end of this season.

News had predicted breaches of $1.7 million.

The Deloitte investigation said the Storm would be $1.3 million over the cap in 2011 with their current roster of stars.

The results of the audit are likely to be released officially on Wednesday, though it is believed this may be pushed back until later in the week.

Storm chairman Rob Moodie has questioned the validity of the audit, claiming it serves News’ interests.

“It was clear from the outset that the inquiry was set up to serve the best interests of News Ltd rather than the best interests of the Melbourne Storm,” he told Fairfax.

Another Storm official, who was not named, labelled the report’s claims to independence as “ridiculous”.

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“It seems slightly ridiculous that News have been billing this report as independent,” he said.

“How can it be when they paid for it? Everybody knows News has an agenda given their conflicts of interest.

“You also have to wonder at how insightful Deloitte’s findings can be as most people wouldn’t speak to them.”

Moodie and the club’s other independent directors are involved in legal action against the NRL over the penalties handed out to the Storm, action News has refused to back.

Fairfax said News executive Peter Macourt had asked Moodie and fellow directors Gerry Ryan, Peter Maher and Petra Fawcett to stand down after three of the four had declined to be interviewed by Deloitte.

“We cannot resign even if we wanted to,” Moodie said.

“We are the only people who have the best interests of the Melbourne Storm at heart.”

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