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estormboy
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http://m.smh.com.au/rugby-league/league ... 16yhz.html

[font=]News Ltd culture 'drove' cap rorts[/font]
Adrian Proszenko October 24, 2010

BRUCE GUTHRIE, the man who took Rupert Murdoch's News Ltd to court and won, believes the Melbourne Storm salary cap scandal is a direct result of the media company's win-at-all-costs culture.

Former Melbourne Herald Sun editor Guthrie was sacked two years ago, despite presiding over the newspaper of the year. He took News Ltd to court for unfair dismissal and was awarded almost $581,000 in damages in what was dubbed the ''media trial of the century''. The saga was chronicled in his recently released book Man Bites Murdoch.

Guthrie said he was unsurprised by revelations that the News Ltd-owned Storm had systematically rorted the salary cap, claiming the media giant demanded success - and didn't care how it was achieved.
''I know that they have tried to say that it was one rogue element [disgraced Storm chief executive Brian Waldron], but I believe the Melbourne Storm [scandal] happened because of the culture of the company,'' Guthrie told The Sun-Herald.
''I have no problem saying that Melbourne Storm happened because of a cultural problem at News, which is 'we want success - whatever it takes, at any price'.
''That fed its way down the lines to Melbourne and presumably the management suites of the club.
''News Ltd can hardly express surprise that that culture led to salary rorts. The Storm thing is an example of too little process, no ethical framework and people making decisions because the company likes success.
''If there's no one saying 'stay within these parameters', you'll go outside those parameters to get success.
''That's what Brian Waldron did, what others did and now News Ltd are saying they are surprised. They shouldn't be.''
However, News Ltd's corporate affairs director, Greg Baxter, hit back yesterday. ''Bruce knows less about running a football club than he did about editing a newspaper,'' he said.
''The assertions that have been made now for some months about our oversight in the way that club was run, we reject totally because of the way in which the people involved orchestrated this deception.
''That fact that it took Deloitte, a team of people, 2.5 months to find out what had gone on shows how hard it was to detect a problem.
''We do not have a 'win at all costs' culture in any of our operations.''
The Storm was hit with the biggest penalties in Australian sporting history, including the stripping of their 2007 and 2009 premierships. Guthrie said that News Ltd was, at best, incompetent for allowing the cheating to go on undetected.
''If they didn't know, it's a disgrace,'' Guthrie said. ''If they did know, it's completely unacceptable.
''It's worse if they did know and they're misleading us, which we will have to accept is not the case. Either way, they stand condemned.''
Guthrie said a lack of process or ethical framework that was evident in his dismissal permeated throughout the media company and filtered through to its handling of the Storm.
''News Ltd likes to dominate things,'' he said.
''They like to be the biggest-selling paper, it wants Foxtel to grow its market share and it wants the Melbourne Storm to win premierships. Sometimes at News Ltd, they're not interested in how you do that.
''With the Melbourne Storm, clearly Brian Waldron and others were intent on success.
''When there's no process or ethical framework put around the business - whether it's a newspaper or a rugby league club - you do whatever it takes.
''If whatever it takes is to go outside the salary cap, then presumably that's what Brian Waldron and others thought they should do.
''There's always the potential the rules are bent or even broken to get to that success.
''It does come back to the culture of News Ltd as much as the culture of rugby league.''
Guthrie also believed it was ''ludicrous'' that News Ltd would sack the Storm's four independent directors after they threatened to take legal action over the harsh penalties imposed on the club.
Murdoch will soon be flying to Australia and it's believed one of the items on his agenda is seeking answers over the Storm debacle.
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estormboy wrote:''I have no problem saying that Melbourne Storm happened because of a cultural problem at News, which is 'we want success - whatever it takes, at any price'.
I remember attending one of Waldron's earliest member forums and he stated that he was hired by News Ltd to grow the Storm brand to prepare for the eventual sale. I think the timeframe he specified was 5 years.

When the scandal first hit it reminded me of a few things Waldron had said over the years in relation to being instructed to do whatever it takes.

It explains why the full Deloitte report will never be released, why the 4 independent directors were sacked whilst the ones more likely in the know of the financial affairs remain, and why Waldron is perpetually labelled the "chief rat" publicly by anyone associated with News Ltd, etc.
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I definitely agree.
The fact is, we'll never really know what happened and to what extent, because News Ltd are the only ones that have the information, and they're the ones that are in control. They can say whatever they want, and we'll be forced to believe it, because they're the ones that deliver the information. Fairfax only finds out things from News sources, so they can only say what News has already said, which can easily be lies to protect their reputation.
This situation truly sucks, and all I can hope for is a 2011 without surprises... except for the good ones ;)
On another note, anytime someone speaks out - even Guthrie - all I can do is think 'not again!'
This story will never die, we just have to learn to live with it.
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However, News Ltd's corporate affairs director, Greg Baxter, hit back yesterday. ''Bruce knows less about running a football club than he did about editing a newspaper,'' he said.
And what does Baxter know about running a footy club? He's just a greedy lima lima lima duck in a suit with his hand out.

But Ia gree; fuel to the fire. The only eyerolling factor in the whole article is that it's a Fairfax publicaton going to town on News with an ex-News employee at the centre of the story.
Gurthie wrote:''I have no problem saying that Melbourne Storm happened because of a cultural problem at News, which is 'we want success - whatever it takes, at any price'.
I'll expect Waldron to toe that line when he goes public...
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