Rugby League Scandal: Melbourne Storm 'waived right' to contest penalties - court told

ABC.net.au

Storm brewing: NRL lawyers say the club's
independent directors agreed to the penalties
in April.

Lawyers for the NRL say the Melbourne Storm have no grounds to contest penalties levied against the club for systematic breaches of the league's salary cap.

Last month the Storm owned up to salary cap breaches totalling $1.7 million over five seasons, and the NRL subsequently stripped them of two premierships and all competition points for 2010.

The club's four independent directors - chairman Rob Moodie, Petra Fawcett, Peter Maher and Gerry Ryan - claim the punishment is a breach of the league's rules and therefore invalid.

Lawyers for the NRL told the Victorian Supreme Court today a meeting was held in Sydney on April 22, in which the club consented to the penalties and agreed to deal with the issue immediately.

They say that agreement waived any further entitlements.

The NRL's lawyer Tony Meagher SC, told the court the Storm agreed to meet with them in April and conceded there had been salary cap breaches and then agreed to the penalties being imposed.

Mr Meagher asked that Valimanda, a Storm parent company, be involved in the proceedings.

Valimanda is owned by News Limited.

The matter will return to court for a case conference in June, and any trial over the matter could take place in July or August.

Outside court, NRL solicitor Tony O'Reilly said the organisation would issue a claim to have Valimanda become part of the proceedings.

"What we are doing is Valimanda is one of the two entities that comprise the Melbourne Storm club, they were part of the decision therefore they should be part of the court proceedings," he said.

"We have no argument with them. The whole Melbourne Storm club was part of the decision.

"The NRL's decision was imposed on the club as a whole which comprises the two entities, therefore they should be part of the court process, so that everybody is bound.

"They agreed to the process that went on so the NRL obviously believes that they should be here as well."

O'Reilly believes the case can be resolved before the finals series.

"We would be pretty confident we would be able to get it done in July and that will get it all over a long time before the semi-finals and it will be all sorted out a couple of months ahead," he said.