Quote Saddened!="Saddened!"The live salary cap wouldn't have caught this. This was effectively financial fraud, not just salary cap avoidance. They used 3rd parties to make extra payments and then kept two sets of records, one for the cap auditors and one for their accountants presumably.
The fact that they got away with it for 6 years shows how staggeringly easy it is. If you think Super League's rules would prevent this in any way you are being very naive. A lot of Super League chairmen have business enterprises they could easily use to make extra payments to players.
The old chestnut of a player's nominated relative or friend being paid a ridiculous salary is one way. Say for example a player called Brent Tarrett came over from the NRL. He gets paid £250,000 himself by the club plus the usual offshore payment and image rights manipulation. His friend in Australia is then paid £200,000 per season by the Sports Manufacturing company owned by the Super League club chairman for 'Sports Manufacturing Consultancy work'. How does the Super League salary cap auditor pick this up? It's not possible to do and as the Storm proved it's incredibly easy to get away with it.'"
Yes true, but they did caught in the end!!!!
This brings us back to the discussion me, you, Adey Bull and G1 had last month on the VT.
We can take the image rights tax manipulation trick out of this discussion though, because we all agree it is currently legal or maybe not currently illegal is a better way to put it, so until the HMRC resolve this in court then we have to assume that this does not break any cap rules and the RFL can not stop this happening. We all know HMRC are going to have a long fight on their hands and we also assume it will not be retrospectively applied, although it is possible! Even then it would be the issue of tax payments and not breaking the cap that would be the issue.
We did all agree that there are ways around the cap and third party payments was the most likely way and hardest trick for the RFL and auditors to trace, even with a rule in the cap regulations asking for full disclosure of directors financial information if requested, but of course legally we knew that could be a challenge.
It brought it to the ultimate conclusion that I think we all agreed on (sort of), that it was possible but the chances are you would get caught at some point and that the risks for doing so would and should be very high. They were also breaking the law of the land (one assumes) as well, so I expect the club to facing an investigation by the Aussie Inland Revenue (or similar) and directors, player and officials to be facing big fines and possible time inside.
I think they should just lose the franchise at the end of the season and put it up for sale, ban the current directors from ever having involvement with a NRL club again and therefore effectively bankrupt the club and take the owners with it.
So we know it's possible to do something similar with the live cap he in SL but the questions is, is anyone actually taking the risk... this is the bit I doubt to be honest!