Storm salary breach tops $3m

News Ltd chief executive John Hartigan has announced the findings into the Melbourne Storm's NRL salary cap breaches.

AAP

MELBOURNE Storm's salary cap breaches are significantly higher than the amount the NRL originally predicted, News Limited chief executive John Hartigan confirmed on Thursday.

An audit commissioned by Storm owners News Ltd and conducted by accounting firm Deloitte concluded the NRL club's breaches tallied $3.17 million from 2006 until the end of this season, including almost $1 million over the cap in the 2010 season alone.

Original predictions of the breaches were around $1.7 million.

Hartigan announced sweeping changes to the club's board, with four Storm directors sacked including chairman Rob Moodie and fellow independent directors Petra Fawcett, Peter Maher and Gerry Ryan.

Stephen Rue was appointed to the board alongside Craig Watt and Frank Stanton, the acting chief executive.

“As the investigation was completed without three of the independent directors’ cooperation or assistance, their positions are untenable," Mr Hartigan said.

“We do not believe the independent directors have shown sufficient willingness to resolve the most pressing issue facing the club and that is to field a team next season that is under the salary cap," he said.

An audit commissioned by Storm owners News Ltd and conducted by accounting firm Deloitte concluded the NRL club's breaches tallied $3.17 million from 2006 until the end of this season, including almost $1 million over the cap in the 2010 season alone.

Original predictions of the breaches were around $1.7 million.

The investigation suggests the Melbourne Storm board orchestrated systematic breaches of the NRL's salary cap guidelines involving complex methods to camouflage payments.

One practice that contributed to the breaches involved the club arranging for third parties to “employ” and/or pay players, with invoices described as “donations” or “consulting fees”.

"In certain cases, some senior managers worked collaboratively so that payments and other benefits provided to players were not disclosed to the NRL and could not be detected by internal or external auditors or by the NRL salary cap auditor," the report said.

Hartigan said the report also found 13 Storm players - including seven current members of the squad - had received payments or benefits from third parties that fell outside the cap.

He said there was no indication that the players knew the payments could contribute to the club breaching the salary cap.

"No evidence was found that these players or their managers and agents knew that these third party payments and benefits could contribute to a breach of the salary cap," he said.

Despite this, Mr Hartigan was critical that none of the players, including top name stars Billy Slater, Greg Inglis, Cameron Smith and Cooper Cronk, were willing to assist with the investigation.

"Regrettably not one of the players agreed to cooperate with the investigation ... in my view it's totally unacceptable.

"I'm pleased to confirm that Craig Bellamy did cooperate with News Ltd's investigators."

He said the club had no choice but to accept the harsh penalties imposed by the NRL, which included the stripping of two premierships and forcing the club to play for no points this season.

"Sadly the severe penalties handed down by the NRL ... are in my opinion warranted," Hartigan said.

"... The actions of a few in the club has stripped it of premierships."

Hartigan said the findings of the report would be referred to police.

"Is it fraud? That's something for the police to decide," he said.