NRL: Storm taking legal action over salary punishment

Rob Moodie said the legal fight was being funded by Melbourne Storm supporters. Photo / Getty Images

The four independent directors of Melbourne Storm say they will commence legal action against the NRL in the Supreme Court of Victoria.

The directors - chairman Rob Moodie, Petra Fawcett, Peter Maher and Gerry Ryan - made the decision unanimously, Moodie said.

Speaking at law firm Arnold Bloch Leibler on Friday, Moodie said the NRL's decision-making process in applying the club's heavy salary cap breach penalties was "not fair, impartial or transparent".

"The NRL also did not provide the club with an opportunity to obtain independent legal advice before imposing penalties or to argue about the appropriateness of the penalties that should be imposed."

Last month the Storm were fined more than A$1 million ($1.25 million), stripped of two premierships and had all premiership points for the 2010 season wiped after salary cap rorting over the past five years was exposed.

Moodie would not reveal who would fund the legal action, only saying they were supporters of the Melbourne Storm.

The Storm's owners News Ltd have said they will not support or fund the legal action and they disagree with it.

A directions hearing has been scheduled in the Supreme Court on May 21 before Justice Tony Pagone.

"In making their decision (to pursue legal action), the four directors have sought independent legal advice and carefully considered the interests of the Melbourne Storm stakeholders - its members, fans, supporters, staff, players anwd sponsors," a statement from the directors' lawyers said.

"News Limited chairman and chief executive, John Hartigan, said yesterday the organisation acknowledges how 'devastating this has been for the fans, players, staff and sponsors of the Storm'.

"These people, while not being the financial owners of Melbourne Storm, are the spiritual and emotional owners of the club.

"The directors of Melbourne Storm seek that the club should be provided with a fair, impartial and transparent process to deal with these very serious issues of breaching the salary cap and, if granted, the club will comply with the NRL's process in a new hearing.

"Moreover, the club will abide by the outcome of any fair, impartial and transparent process at which the club is independently represented.

"And they will also encourage all of the Melbourne Storm stakeholders to do likewise."

NRL chief executive David Gallop yesterday said legal proceedings could weed out accomplices to the covert salary cap breaches.

"The club's practices could not be any more under the spotlight and if the threat of legal proceedings is an attempt to divert attention away from that issue then it may have the opposite effect," Gallop said.

"There is no doubt that any proceedings that take place could well help to identify if any Storm directors were aware of the club's salary cap deception."

- AAP