https://www.dailytelegraph.com.au/s...t/news-story/85851921e2a878a7ef4ba23e1e2a0f46
DEFIANT Manly owner Scott Penn fired back at the NRL, declaring: “We’re not salary cap cheats.”
The Sea Eagles chairman told The Daily Telegraph his club had been “seriously hung out to dry” through “circumstantial evidence” despite the NRL revealing it had uncovered “deliberate breaches of the salary cap".
“This is not a rort,” Penn insisted.
Penn’s comments come on a black day for Manly, who were fined $750,000 — with $250,000 suspended — and issued a $660,000 deduction in the club’s salary cap for this year and next season.
Manly chief financial officer Neil Bare was kicked out of rugby league for 12 months and cannot reapply for registration until January 1, after he undertakes governance training.
The NRL integrity unit claimed Manly had offered “undisclosed benefits outside the salary cap to attract players to the club.”
Manly’s lawyers were on Monday night examining the NRL’s 115-page determination before deciding whether to formally appeal the punishment.
The club hopes to have received preliminary advice by close-of-business Tuesday with a final decision by the end of the week.
“These benefits were in the form of third party agreements which were never declared to the salary cap auditor,” said NRL chief executive, Todd Greenberg.
“In other words, Manly had a financial advantage in securing the services of players who may otherwise have gone to other clubs.”
Roosters CEO Joe Kelly was also suspended for a year for his role in the salary cap drama when chief executive for three years at Manly, from October 2014 until he departed in September 2016.
Penn and Manly CEO Lyall Gorman were locked in top-level meetings Monday morning with the club’s lawyers.
Asked had his club cheated, Penn said: “No. We have abided by the principles of the salary cap. The club has not paid one player any more than we have declared.
“And the NRL has not provided a smoking gun through this whole process. It’s disappointing to be tarnished with a big brush.
“We have not paid a player one cent more than our annual salary cap declaration. We have abided by the principles and rules of the salary cap. They are suggesting we have somehow rorted the system and gained an unfair advantage — we disagree.
“They have said we effectively made promissory notes to players and not disclosed them. They were in relation to making introductions and helping find them third parties. It was only around the negotiating process.
“The NRL is maintaining a hard line on it and are saying it is breach of the rules. We never guaranteed any third parties. That is what we are disputing. They are saying we had to disclose them, it was an obligation.
“But there are no guarantees in writing — this is all circumstantial. When you’re negotiating with a player, sure you try and find them additional money. That’s common practice. This isn’t isolated to the Sea Eagles.
“This is not a rort. It’s a protocol issue. The club has not guaranteed third parties. And no-one is claiming that we have, this is where it gets tricky. We are seriously getting hung out to dry on this, to be honest.
“It is a normal course of business to talk about what is possible. They are claiming we made commitments, promises, to players without disclosing it to them.”
Asked was that practice still illegal, Penn said: “That’s the grey area. They’re saying, under the rules, you have to include in the paper work any negotiations that are on-foot. Any existing or proposed.”
Then pressed on whether his club did this, Penn said: “No, we didn’t, to be fair. But I don’t know if anyone ever does. It is a very difficult thing to do.
“What we have done is introduce people to player agents, and the like, as part of the negotiations. All at an arm’s length and said there is potentially an opportunity here. Some have come to pass, some haven’t.
“They are claiming that every single one of those for the past five years — any introduction or otherwise — should have been in the cap, which we totally disagree with.”
The offences totalled $1.5m over five years. Thirteen players were deemed to have been involved in “serious” breaches.
The protracted investigation has damaged Manly’s brand, according to Penn. And the club is poised to announce an appeal to the NRL Appeals Committee.
“We feel at this stage there are certainly strong grounds to appeal,” Penn said. “We just need to review that based on our legal opinion.”
Bare has twice been overlooked for the Manly CEO job with Penn first opting for Tim Cleary and now Gorman.
Darcy Lussick could leave the club as early as this week.
“I’d prefer not to comment (on Bare),” Penn said.
Manly will not have competition points deducted given they are salary cap compliant for this season.
The NRL uncovered serious breaches and suspicious player payments dating back three years. While not guilty of any offence, the NRL has issued Manly coach Trent Barrett with a warning.
The Daily Telegraph understands prop Darcy Lussick may be leaving the club as early as this week to join Super League.
His probable exit would free up some money for Manly to chase other players throughout the season. The NRL was tipped off about the suspected breaches by a police strike force which was investigating alleged match fixing at the club.
No charges were laid in relation to the match fixing allegations.
