General Warriors had been warned of potential salary cap breach

PB_old

Guest
If this is true I reckon we are screwed.

By Brad Walter
February 27, 2006

THE Warriors were up to $800,000 over the NRL salary cap before the start of last season, according to the club's own budget estimates.

The potential breach for the 2005 season, which is now under review by NRL salary cap auditor Ian Schubert, is identified in a document purported to be a statement of the accounts for the Warriors dating from October 31, 2004.

The document, which predicted a blow-out in player payments to NZ$4,133,478 ($3.7m) for last season, has been obtained by Fairfax newspapers in New Zealand and some details were yesterday published in the Sunday Star-Times.

Listed under "player remun - 1st contract", the document shows a total figure of $NZ3,638,361 in 2003, rising to $3,821,365 in 2004 and to a budget forecast of $4,133,478 for 2005. Collectively, figures for management fees/bonuses, agents fees and air fares total roughly a further $60,000.

The NRL salary cap for the 2006 season is $3.36m but some concessions are allowed. The source of the document says the club was alerted at the time of a potential cap overspend.

Warriors officials will today meet NRL chief executive David Gallop to argue why the club should not be docked up to six competition points for allegedly exceeding the cap by about $500,000.

Gallop yesterday declined to comment on the investigation and possible outcome, while Warriors chairman Maurice Kidd did not return the Herald's calls.

Suggestions that the Warriors might also be scrutinised under anti-tampering rules over their recruitment of Ruben Wiki from Canberra are likely to be unfounded, however, as the Raiders conceded they had lost the Kiwi Test captain to English club Wigan before June 30, 2004.

The Warriors weighed in with a massive offer in the early hours of July 1 and Wiki subsequently signed, but details of the deal uncovered when chief executive Wayne Scurrah earlier this month handed a batch of documents over to Schubert have landed the Auckland-based club in trouble.

Specifically, Schubert is concerned about a development or coaching job guaranteed to Wiki after retirement, valued at up to $150,000 a year.

Warriors skipper Steve Price is alleged to have had a similar deal, while free mobile phones and air fares for players and their agents are other alleged salary cap breaches.

Vodafone, a major sponsor of the Warriors since 1999 and whose current deal expires in 2007, has vowed to stick with the embattled club.

Meanwhile, the Warriors cast aside their salary cap worries to record their first pre-season win with a 24-20 defeat of the Bulldogs at Carrara Stadium on Saturday night. In other trial news, Newcastle celebrated the return of captain Andrew Johns with a 22-4 victory over Cronulla at Coffs Harbour, while North Queensland handed South Sydney a 42-0 belting in Mackay.

Brisbane also copped a thumping from Melbourne in their final warm-up but will have Darren Lockyer (foot), Brett Seymour (foot), Tonie Carroll (elbow), Shaun Berrigan (wisdom teeth), Barry Berrigan (neck), Brett Seymour (shoulder) and David Stagg (hamstring) all back on deck for the March 12 clash with the Cowboys.

Elsewhere, Wests Tigers officials are set to look into an incident in which Manly back-rower Anthony Watmough dropped heavily on Scott Prince in the Sea Eagles' 42-18 win at Brookvale Oval. Watmough was sin-binned.

Tigers prop John Skandalis was the only casualty from the game, injuring his biceps.
 

warriors4life_old

Guest
it probably is true but i hope the warriors can convince gallop to have no competition points docked.
 

da mad maori

Guest
I dont mind competition points being deducted. Even if it was higher than six.
We cannot afford a hefty fine, for purchasing reasons. If we're strong enough, we'll see out this season knowing we wont make the eight, but will hopefully have enough cash in the bank, to face the market next year.
My hopes are still high, that Scurrah and co will pull this one off.
 

Jesbass_old

Guest
Polar Bob said:
The document, which predicted a blow-out in player payments to NZ$4,133,478 ($3.7m) for last season, has been obtained by Fairfax newspapers in New Zealand and some details were yesterday published in the Sunday Star-Times.

Listed under "player remun - 1st contract", the document shows a total figure of $NZ3,638,361 in 2003, rising to $3,821,365 in 2004 and to a budget forecast of $4,133,478 for 2005. Collectively, figures for management fees/bonuses, agents fees and air fares total roughly a further $60,000.

Pardon my poor maths, but how does AU$3.7m (the amount purportedly paid to players at the beginning of season 2005) minus AU $3.36m (the salary cap and the limit of allowed spending) equal "almost $800,000"? Even if that 800,000 is New Zealand Currency, it seems as thogh it is almost double the figure that the Warriors have supposedly overspent by. :?
 

David James_old

Guest
da mad maori said:
I dont mind competition points being deducted. Even if it was higher than six.
We cannot afford a hefty fine, for purchasing reasons. If we're strong enough, we'll see out this season knowing we wont make the eight, but will hopefully have enough cash in the bank, to face the market next year.
My hopes are still high, that Scurrah and co will pull this one off.

But can we afford low crowd figures if we do get docked points.

Not everyfan is like you or I DMM.

Some people only watch the Warriors or turn up to see them win or make the 8.
 

Mo_old

Guest
Theoretically any fine the Warriors are required to pay should not impact on future purchasing power (assuming Uncle Eric stumps up with the extra cash) as I understand that the fine is purely a financial penalty on the club and does not reduce the amount that the club is allowed to spend on players.

I'll be there to support the Warriors no matter what happens but I do believe that a points penalty has the potential to harm the club particularly in respect of crowd attendance by the fair weather fans.

May not be too long now until we know our fate if the following article (which I have reproduced from www.stuff.co.nz) is anything to go by:

Warriors may learn punishment today
27 February 2006

The New Zealand Warriors may learn their fate later today with the National Rugby League (NRL) board scheduled to consider a penalty for the club's salary cap breach.


The six-member board is to meet at 5.30pm (NZT) to consider a punishment recommended by NRL chief executive David Gallop.

Gallop and the NRL's salary cap auditor Ian Schubert have been locked in discussions with a three-man management team from the Warriors at NRL headquarters here since midday (NZT).

The Warriors team comprising chairman Maurice Kidd, chief executive Wayne Scurrah and director of football John Hart tendered their explanation for breaching the $A3.25 million ($NZ3.66 million) cap.

The NRL has not speculated on what penalty will be imposed but there have been suggestions the Warriors could be docked up to six competition points and be heavily fined.
 

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