Melbourne Storm lose Premiership titles
The NRL has taken the task of disciplining one of the most successful Rugby League clubs seriously, stripping the Melbourne Storm of two Premiership and three minor Premiership titles. In addition, all competitions points accrued to date have been removed and the club will not be awarded any further points for the remainder of the 2010. They have also been fined $500,000 and will be forced to return $1.1m in prize-money with the prize-money being distributed evenly among the other fifteen clubs.
It is reported they have been found to have been breaching the salary cap on multiple occasions over a number of years in excess of $1.7 million.
The NRL has uncovered breaches estimated to be in excess of $1.7million over five years, around $400,000 in 2009 and with a projected breach of $700,000 in 2010.
While the amount itself is cause for concern, the most damning indictment is the systematic attempt by persons within the club to conceal payments from the Salary Cap auditor and, it would now seem certain from the club’s Board and from its owners, on an ongoing basis,” Mr Gallop said.
“It was through this system that they were able to attract and retain some of the biggest names in Rugby League.”
Source: Yahoo!7 Sports News
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Kate
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I think the penalty imposed by the NRL today is appropriate
they will make the 8 there only 10 points behind the leader an 4 points short of 8th position and its early days
As the dust settles on what is arguable the biggest sporting controversy since Trevor Chappell sent down his underarm, smart observers will note the opportunity Rugby League now has in front of it.
Since reformation of the game post super league I have noted of interest that the games administrators have not taken heed of lessons that should have been learnt.
It is now clear that after more than a decade of being unable to fully come to grips and manage a pathway clear of player salary issues that game requires an independant commission.
Reactive and stop gap management have led to what is now the train crash we had to have. I get the feeling the sporting landscape may shortly shift to the Gold Coast for the next installment of this salary cap nonsense.
Let me explain the bigger picture;
External Financial Forces.
The UK and Union won’t disappear, the game needs management that will grow revenue streams and will allow the salary gap to be aligned to market forces. ie:The competions net worth must be able to distribute funds to players that can at least match that of union and super league UK clubs.
Rugby League Needs A New Business Model.
I hate to say this but the AFL lead the way in this area and the stats don’t lie.
Example in 2000 the AFL’s leading club membership was Essendon with 28,000 members and the TV-Radio-Internet rights deal brought in appox $300m.In the NRL Brisbane best with 12,000 members and the rights deal brought in approx that of the AFL deal mainly as a result of foxsports.
Now fast forward 10 years.
Collingwood this week signed up 55,000 members at an average membership cost of $400 equating to a $22m a year windfall. The broadcast rights deal to be signed at seasons end will rake in more that $1billion.
Serious numbers for a game that is a poor TV sport.
Brisbane hit an all time high membership record of 13,500 members this week and average membership price of $300 equating to a $4.050m per year, whilst the broadcast rights will fall well shortestimated at $600-$700m. over 5 years.
So just in these areas we are best scenario $380m short of the AFL.
This equates to $4.75m each club could put into thier salary cap approx doubling the current to $9m. This would leave us well clear of AFL and Union and have us on track to take the UK issue out of play all together.
10 years ago an NRL player could comand double that of his AFL counterpart, not anymore AFL $100k more on average (Remember Karmichael Hunt)
How can we attract the best athletes to our game if we pay them well under the odds.
An independant comission free of emotional decision making and reactive policy making can re align our great game and get it back on track.
If we don’t act now then we will lose key markets like Melbourne forever. Whatever you’re view is on Melbourne the reality is National audiences bring in bigger dollars and grow the pie that will and can feed everyone through an elevated salary cap that would attract the best, retain the best and lesson the pressure on clubs to make poor decisions the likes of which we have seen lately.
If the game is being adminstered in a away that differs from these goals then it will never start to recover.
I think it is unfair that they had the premiarships taken off them as it was the players who earnt them not the executives that over payed them give the premiarships back and fine the people who made the mistake
sorry if i spelt anything incorrectly