Salary Cap Breach Case Study
Introduce the case facts
In 22 April 2010, News from The Age claimed that the Melbourne Storm rugby league club was involved in a long term salary-cap breach scandal. "They had a long term system of effectively two sets of books and the elaborate lengths they have gone through to cover this up has been extraordinary," said NRL chief David Gallop (2003).
It was disclosed that the Storm had been paid $1.7 million to their players for the past five years and including roughly about $700,000 in year 2010. However, this amount was over the salary cap amount, and strictly not allowed (NRL, 2010). According to NRL (2010), Gallop said "These payments have allowed them to employ and maintain some of the best players in the game. There's no option for the NRL in terms of penalty." …show more content…
Firstly, Melbourne Storm had been stripped of their two premierships, which in year 2007 and year 2009, and three minor premierships in year 2006 to 2008. Secondly, their eight competitions point during year 2010 season had been cancelled, and disqualified from getting premiership points for the rest of the season. Thirdly, Melbourne Storm had been fined in total $500,000, and finally, they had forced to repay $1.1 million in prize money with the prize money being distributed evenly among the other 15 NRL clubs.
NRL (2010) chief David Gallop emphasised that Melbourne Storm was facing the hardest penalty for a salary cap breach case in NRL history.
By doing this, the Storm have disappointed their fans "In doing so they have let down the game, the players and the fans of the Melbourne Storm (Barrett, 2010).”
NRL claimed that, everyone knew the rules, particularly after year 2002, Bulldogs cases. For those who wish to challenge the rules must know what is the consequence after been caught
In 22 April 2010, News from The Age claimed that the Melbourne Storm rugby league club was involved in a long term salary-cap breach scandal. "They had a long term system of effectively two sets of books and the elaborate lengths they have gone through to cover this up has been extraordinary," said NRL chief David Gallop (2003).
It was disclosed that the Storm had been paid $1.7 million to their players for the past five years and including roughly about $700,000 in year 2010. However, this amount was over the salary cap amount, and strictly not allowed (NRL, 2010). According to NRL (2010), Gallop said "These payments have allowed them to employ and maintain some of the best players in the game. There's no option for the NRL in terms of penalty." …show more content…
Firstly, Melbourne Storm had been stripped of their two premierships, which in year 2007 and year 2009, and three minor premierships in year 2006 to 2008. Secondly, their eight competitions point during year 2010 season had been cancelled, and disqualified from getting premiership points for the rest of the season. Thirdly, Melbourne Storm had been fined in total $500,000, and finally, they had forced to repay $1.1 million in prize money with the prize money being distributed evenly among the other 15 NRL clubs.
NRL (2010) chief David Gallop emphasised that Melbourne Storm was facing the hardest penalty for a salary cap breach case in NRL history.
By doing this, the Storm have disappointed their fans "In doing so they have let down the game, the players and the fans of the Melbourne Storm (Barrett, 2010).”
NRL claimed that, everyone knew the rules, particularly after year 2002, Bulldogs cases. For those who wish to challenge the rules must know what is the consequence after been caught