Storm stripped of Premierships
By Jane Aubrey, WWOS16:00 AEST Thu Apr 22 2010

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NRL boss David Gallop has announced Melbourne Storm will be stripped of the 2007 and 2009 Premierships, the Minor Premierships of 2006-8 and of its 2010 competition points after confirming a series of salary cap breaches amounting to at least $1.7million over five years.

Storm chief executive Matt Hansen and chairman Rob Moodie were informed of the ruling earlier this afternoon at NRL headquarters in Sydney.

The reigning premiers were title favourites this morning and sat fourth on the NRL ladder after four wins and two losses.

The club will lose all competition points earned to date in 2010 and also the right to accumulate points going forward in 2010. Competition tables will record wins and losses but the club will not be awarded competition points on the basis of any wins.

The club has furthermore been fined $500,000 and will be forced to return $1.1million in prize-money which will be distributed evenly among the other fifteen clubs.

Individual awards achieved by players will continue to be recognised but records will be adjusted to show that the Premiership is not recognised even though the result cannot be overturned. Neither Manly nor Parramatta will assume the Premiership titles in their respective years.

The investigations have revealed the Storm maintained a dual contract system and the club has today confirmed that side letters promising extra payments were stored in a secret file at the home of the chief executive.

The accounts were structured in such a way that it would appear the commitments were not apparent to either the Melbourne Storm Board or its owners.

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," Gallop told a packed press conference.

"It was through this system that they were able to attract and retain some of the biggest names in rugby league.

"In doing so they have let down the game, the players and the fans of the Melbourne Storm. Clearly there were some individuals who knew what was going on and perhaps many who did not."

In 2002 Canterbury Bulldogs were stripped of 37 premiership points and were fined $500,000 for a salary cap breach, while in 2006 Auckland Warriors started the season with a four-point deficit, played out the rest of the season under a reduced salary cap and paid out a $430,000 fine.