From news.com.au  8 December 2000


EIGHT clubs have been caught exceeding the salary cap in a major embarrassment to the NRL.


Fines up to $1 million in total are expected to be imposed on the offenders.


In a show of contempt for the rules, errant clubs have collectively broken the spending limit by about $2m.


Newcastle, Penrith, Melbourne, Sharks, Bulldogs and North Queensland are believed to be among the clubs in breach of the $3.25m ceiling.


The Knights have exceeded the cap by $447,000 while the Storm are understood to have over-spent by around $100,000.


However, big-spending Brisbane claimed last night to have remained under the salary cap. NRL rules provide for offending clubs to be fined up to 50 per cent of the amount of their transgression.


The NRL will today issue breach notices to offending clubs, which then have a right to appeal.


NRL chief executive David Moffett said there would be zero tolerance for clubs over the limit.


"The mandate from the 14 clubs is to enforce the salary cap without fear or favour," Moffett said.


The NRL board yesterday heard a recommendation on salary cap breaches from auditor Ian Schubert. He has trawled through the books of all 14 clubs in recent weeks.


The report was accepted by NRL chairman Michael Hill, who also had a club interest in being chairman of Newcastle which was revealed to be the prime offender.


"Everyone knows the rules but this has obvious ramifications to the Newcastle club," Hill said.


The NRL would not publicly reveal all eight offending clubs nor the amount of each penalty.


"It would be grossly unfair to do so  we are only halfway through the process," Moffett said. Despite knowing they could be investigated and fined, it appears some clubs decided to take risks rather than being left behind in the hunt for top-line players.


Sharks general manager Steve Rogers last night conceded his club had broken the cap by $30,000-$40,000.


"It was something that was not done deliberately," Rogers said.


"We are in full support of the salary cap and our breach occurred because some of our younger players were given more first-grade games than we anticipated at the start of the year.


"Therefore, they were paid more than we originally budgeted for."


Penrith spokesman Rob Weaver admitted his club was also among the eight offenders.


"We have been very up-front about this and told the NRL we would be over the limit 18 months ago," he said.


"But we have been striving to get our player payments down and will be definitely okay for the 2001 season."


Bulldogs chief executive Bob Hagan also admitted his club had busted the cap. 


Moffett said heavy fines would convince clubs the salary cap was not a toothless tiger. "I have a simple view that if the NRL has a policy it should be enforced until such time as it is changed," he said.