Ex-Storm boss explains salary cap rort: 'Everyone does it'

Former Storm and Rebels CEO Brian Waldron. Photo / Getty Images

Former Melbourne Storm CEO Brian Waldron has told the current chairman he masterminded the club's blatant salary cap breaches because "everyone does it."

He is understood to have explained his actions to Dr Rob Moodie, who today tendered his resignation as chairman of the embattled club.

Waldron stepped down as Rebels CEO this morning after he was accused of orchestrating the scheme which allowed the Storm to breach the salary cap by $1.7 million over at least four years.

The scandal has led Melbourne Rebels Super 15 chairman Harold Mitchell to order a review of his team's financial dealings.

"I need to know everything," Mitchell said today.

An emergency board meeting was called at Rebels headquarters this morning, where Waldron tendered his resignation and had it accepted.

The fledgling Super Rugby franchise, which is putting a team into the expanded 2011 Super 15 competition, appointed Waldron to the top role just three months ago.

Prior to that, Waldron was Storm CEO for five years. He was also head of the St Kilda Aussie Rules side.

The chairman of the Melbourne Storm said he had no idea the team was breaking the salary cap, but in light of the scandal is offering his resignation.

In a press conference this afternoon, Storm chairman Dr Rob Moodie asked fans to stand with the club but understood if they had lost faith in the team.

"We thought we had a great culture, but we've been proven wrong," said Dr Moodie.

He also respected the decision of sponsors who may withdraw their support.

Accounting firm Deloittes will begin a forensic investigation into the club next week.

Australian Prime Minister Kevin Rudd also chimed in today, saying the penalties imposed on the Storm were fair.

"I know some Melbourne Storm fans may think it's been harsh, but you've got to defend the rules of the game," Rudd said. "And this seems to be the worst possible breach."

Victorian Police told AAP today that they had not yet been asked to investigate the scandal.

- NZHERALD STAFF