League: Warriors board shocked by penalty

The Warriors board was last night "shattered" by the National Rugby League decision to fine the club and deduct four championship points before the start of this year's competition.

Club chairman Maurice Kidd said the board was also concerned that the NRL had not given the club sufficient time to properly inform its players, sponsors and key partners about the outcome of the salary cap investigation, and to assess the impact on the club.

"Although the club and the majority owners acknowledge there has been a breach, and accept a fine is inevitable, the imposition of points deduction for past breaches in a season which has not yet commenced is totally unreasonable," Kidd said.

"Basically new management identified there was a problem, we fronted up and co-operated fully with the NRL and yet the team is being penalised into the future for issues that occurred in the past."

The club would now consider all options open to it.

Majority owners, Eric Watson and Mark Hotchin last night reaffirmed their commitment to the club, and their confidence in management, coaching staff and the team to compete strongly this year despite the setback.

"We accept the fact that we will incur a fine and we can move on from that. However, the points decision is extremely disappointing and unfair," Watson and Hotchin said in a statement.

The Warriors were fined A$430,000 ($482,666) and deducted points after the Warriors management fronted the NRL board in Sydney yesterday.

The breach, over the 2004 and 2005 seasons, related to payments of close to $1 million and included undisclosed payments, unregistered agreements with third parties and guaranteed payments to players after retirement.

Previous club managers had failed to disclose any of these issues, despite several inquiries, the NRL said.

The current administration had co-operated fully with the investigation and had 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 reduced for the 2007 season.

"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," said NRL chief executive David Gallop.

"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 Warriors matter is a serious breach. It has certainly been mitigated to some extent by the transparent actions of the current management.

"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."

It is believed $130,000 of the breach was for overspending on the team and the remainder on post-playing employment guarantees.

The NRL was forced to defend its imposition of a salary cap yesterday and to reveal financial details.

The game will make A$107 million this year, according to NRL predictions and all will be spent.

The salary cap is actually A$3.36m, A$110,000 more than the generally-stated figure.

On top of that there is an allowance of A$100,000 for veteran players, another allowance of A$200,000 for "sponsorship servicing", and A$100,000 that can be earned for extras performed for "third-party sponsors".

So A$3.76m is the limit for a club's nominated top 25 players.

Most spend up to another A$1m on players outside the top 25, with the NRL providing each club with A$250,000 for that purpose.

CAP CAPERS

* Breach $1 million over 2004-2005 seasons.

* Four points deducted this season.

* Club fined $482,666.

* Players assured contracts will be honoured.

* Warriors open season against Melbourne Storm in Auckland on March 12.

HOW THEY REACTED

Warriors majority owners Eric Watson and Mark Hotchin:

We will do everything in our power to assist the team to compete in a competition which is no longer on a level playing field. And no matter what, we hope the Kiwi fighting spirit will prevail and New Zealanders will come out in full support of the team.

Warriors captain Steve Price:

Of course we can [make the finals]. Every year I sit down knowing that there's going to be a lot of things throughout the year that hinders your season.

This is one of those things that can hinder it but we may look back and say this is something that helped bring out the best in us.

It has not changed my strategy. We will work a bit harder and it will be a bit tougher but for sure we can rise to the challenge.

NZRL chairman Selwyn Pearson:

I'm shell-shocked, that's all I'm prepared to say. Absolutely shell-shocked.

I'm pretty upset at the moment, to be honest.

They absolutely have to play in the competition.

It would be heartbreaking if they missed the top eight by four points or two points, wouldn't it?