23 Jul 2010

Storm owners drop legal battle with NRL

5:58 am on 23 July 2010

Only the Melbourne Storm fans can now win the battle with the National Rugby League over massive salary cap penalties after the club dropped its legal action against the league.

The News Limited owned Storm announced yesterday it would be dropping the case against the NRL, which is half-owned by News Limited.

The case, which sought an injunction on the penalties that included stripping the club of the 2007 and 2009 premierships and all competition points this year, had been brought by the club's four independent directors.

But the independent directors were sacked last week after a report revealed the Storm's salary cap breaches were greater than first thought.

After a legal review, the club's new directors, appointed by News Limited, decided the case would not proceed.

The NRL chief executive David Gallop says the decision removed the barriers the Storm's legal team had placed in the path of the NRL salary cap auditor and the league can now begin working with the club on a playing roster for 2011.