NRL inform Warriors of breach notice

Following a National Rugby League Board meeting today, the NRL has informed the New Zealand Warriors that they will be issued with a breach notice detailing the loss of four competition points for the 2006 season and a fine of $430,000 for salary cap breaches.

Upon receipt of the breach notice the Warriors will have five business days in which to make formal submissions in regard to the proposed penalty.

The Warriors breach over the 2004 and 2005 seasons related to total payments of close to $1million.

Included in the breach are undisclosed payments, un-registered agreements with third parties and guaranteed payments to players after player retirement.

While there was a failure to disclose any of these issues, despite a number of inquiries, with previous managers of the club, the current administration has cooperated fully with the NRL. The NRL accepts that the current administration has not been a participant in any of the issues under investigation.

In ensuring that the team is under the cap in 2006 the Warriors will also have their effective salary cap spending capacity reduced for the 2007 season.

While this is the first time a team has been stripped of points in advance of a season, the NRL rules have allowed for this outcome since 1998.

“We can’t have a system whereby clubs can gamble on breaking the rules, knowing that they can solve the issue at the end of the year by simply writing a cheque for a fine,” NRL Chief Executive, Mr David Gallop said today.

“Those charged with the responsibility of running a club for the owners, sponsors and fans have to know that they not only risk one season by breaking the rules, but that they can affect a club for years to come.

“The severity of a penalty will depend on not only the amount in question but the extent to which it has been concealed from the Salary Cap Auditor and the institutionalized nature of the practices which have led to the breach.

“The Warriors matter is a serious breach, it is not the biggest we have recorded but it is above anything that has simply incurred a fine in previous years.

“It has certainly been mitigated to some extent by the transparent actions of the current management.

“They are to be acknowledged for the professional manner in which they have conducted themselves, but even that cannot completely negate what has taken place.

“I am confident that they will now focus on restoring the confidence of the fans and players who support the club so passionately.

“It is up to everyone to accept that the club has paid a price and that it should now be able to move forward.”

Related Article:

NRL investigates Warriors over salary cap (Tues Feb 21)