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Home / Sport / League / NRL

League: NRL set to sue tardy sponsor Telstra

5 May, 2007 05:00 PM2 mins to read

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KEY POINTS:

The NRL has started legal action against Telstra after it emerged that the competition's principal sponsor had not paid a cent so far this season of its A$90 million deal.

Telstra has withheld the cash as it believes it is being undermined by News Ltd over the use
of footage on the Fox Sports website. Telstra signed a new six-year deal in March.

The NRL has sided with Telstra in its proceedings against News Digital Media and Fox Sports regarding the online use of NRL footage but decided to press ahead with its own claim, believing it had no alternative.

"There can be no reason to withhold payments to the NRL," Gallop said. "Telstra's decision to withhold payment is highly disappointing and quite unreasonable. It is without any basis at law or otherwise."

Warriors chief executive Wayne Scurrah is keeping a close eye on proceedings given that any shortfall in cash at NRL headquarters could affect the amount of grants each club receives and also hit any future increase in the salary cap.

At present, the Warriors receive about $4 million from the NRL annually, which represents the club's biggest source of revenue.

Convenor of selectors Howie Tamati has raised the possibility of more players being invited to play in the All Golds match against the Northern Union in October.

Ruben Wiki and Nigel Vagana have already received invitations and the NZRL will this week send out a formal letter for someone to replace Andrew Johns as the Dally M player.

Brad Fittler, Darren Lockyer, Trent Barrett and Shane Webcke have all been touted as possible replacements for Johns and Tamati said they needed contingencies in place in case of injuries. He also said they were considering approaching other players.

"There could well be more invitees and we will have to talk to the English about how they want to approach the game," Tamati said.

"But we have to be careful about how widely we extend the invitations because we don't want to lessen the importance of what is a significant match for us."

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