NRL: Rupert Murdoch 'embarrassed' by Storm breaches

SYDNEY - News Corporation chairman and chief executive Rupert Murdoch says the revelations of massive salary cap breaches by NRL club Melbourne Storm were "embarrassing" for the company.

But Murdoch said News, which owns the Storm and half the NRL competition, did not drop the ball by failing to detect the cheating that was taking place at the club.

"We didn't enjoy it, it was very embarrassing but it certainly was not us," Murdoch said during a conference call after News Corporation announced third quarter results today

"We were shocked.

"We're far from sure that we're the only club involved."

Melbourne were stripped of their 2007 and 2009 premierships, fined A$500,000 and ordered to pay back A$1.1 million in prizemoney after the club was found to have exceeded the salary cap by A$1.7 million over the past five years.

The Storm also cannot earn any premiership points in the 2010 competition.

The club, founded in 1997, is wholly owned by News Corporation's Australian division News Limited.

News Ltd is also a 50 per cent owner of the NRL competition.

Murdoch said the company took "immediate action" once it discovered what was going on.

"(News Ltd chief executive) John Hartigan got right out in front of it and was the one to announce it and take the necessary actions," Murdoch said.

Asked for his view on whether the company's position with regard to owning the club or maintaining its half-stake in the NRL had changed following the salary cap breaches, Murdoch said he could not comment.

"I'm afraid I'm a bit too far removed, I don't know enough about it," Murdoch said.

- AAP