Lawyers for the National Rugby League say the Melbourne Storm have no grounds to contest penalties levied against the club for systematic breaches of the league's salary cap.
Last month the Storm owned up to salary cap breaches totalling $1.7 million over five seasons, and the NRL subsequently stripped them of two Premierships and all competition points for 2010.
The club's four independent directors - chairman Rob Moodie, Petra Fawcett, Peter Maher and Gerry Ryan - claim the punishment is a breach of the league's rules and therefore invalid.
Lawyers for the NRL told the Victorian Supreme Court that a meeting was held in Sydney on April 22nd, in which the club consented to the penalties and agreed to deal with the issue immediately.
They say that agreement waived any further entitlements.
A further hearing has been set down for early June.