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News Ltd won't support Storm legal action
Topic Started: May 12 2010, 01:35 PM (89 Views)
stacey May 12 2010, 01:35 PM Post #1
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 By staff writers
May 13, 2010

News Limited has stated it will not support or fund any legal action against the NRL by the independent directors of the Melbourne Storm.
The independent chairman of the Storm, Rob Moodie, advised News Limited on Wednesday that the independent directors want the NRL to review the penalties for salary cap breaches by the club and are considering legal action if necessary.

Representatives from Melbourne-based law firm Arnold Bloch Liebler confirmed the firm has been retained by the independent directors of the Storm to consider a legal about the manner in which the NRL determined the penalties.

However, News Limited chairman and chief executive John Hartigan said the company, while respecting the views of the independent directors, could not support such a challenge.

"We acknowledge their views and we disagree with them," Hartigan said.

"News recognises that the penalties are unprecedented. We know how devastating this has been for the fans, players, staff and sponsors of the Storm.

"We have said we will consider any idea from players, fans or anyone else that would help minimise the impact of the penalties on the Storm.

"But, we don’t believe a legal challenge to the NRL’s procedures is the answer. On the contrary, it could further damage the Storm," Hartigan said.

Hartigan insisted a legal challenge is not the way to go, rather suggesting the Storm should focus on rebuilding their shattered club and image.

"However justified or well intentioned a legal challenge might be in the minds of the independent directors or others, it won’t change what’s already happened and it won’t absolve those that have done the wrong thing.

"A legal challenge like the one being contemplated will be time consuming, expensive and a distraction from the real issues when everyone associated with the club should be focussed on rebuilding the Storm," he said.

"Right now, we have two top priorities. We want to get to the bottom of what went on and who was responsible. Equally, and more importantly for the long term, we have started work on rebuilding the Storm so that it has a clean slate, new management and a credible plan to restore its reputation.

"To that end, the board of the Storm should be concentrating on how the club can field a team next season that is within the salary cap."

Mr Hartigan said the forensic audit of the club’s financial affairs by the accounting firm Deloitte was well underway and a full report was expected in June.

"We are determined to get to the bottom of what went on and hold those responsible to account," he said.
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