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Rugby WA have been hammered with a $150,000 fine by the Australian Rugby Union for breaching player contracting protocols when recruiting players for the Western Force.
Following a meeting with ARU bosses last night, a statement said the Perth-based franchise had been forced to admit to involvement in several breaches of contracting protocols.
These included underwriting third party benefits to players, paying player wages in excess of the maximum permitted by state unions, inappropriate disclosure of player remunerations and offering third party benefits to induce a player to sign.
ARU CEO John O'Neill said a bigger fine could have left Rugby WA in dire straits, so instead the ARU has demanded Rugby WA perform an audit of its contracting procedures, and report back to ARU headquarters by year's end.
"The fact is there is little to be achieved by imposing a financial penalty on Rugby WA that is so large that it damages its ability to compete and grow the game in Western Australia," O'Neill said.
"I believe a fine of $150,000 together with the audit and access rights the ARU has secured is about right.
Under the penalties, Rugby WA has to provide the ARU with audit rights and access to its records and documentation relating to its player contracting activities.
Rugby WA will also undertake to review and improve its internal structures and controls.
"It is vitally important that the protocols relating to player contracting are observed and complied with at all times," O' Neill said.
"We will continue to be vigilant and aggressively police the protocols.
The ARU investigation occurred after reports alleged the Force had repeatedly gone outside ARU contracting processes in setting up its Super 14 team in 2005.
It was alleged in newspaper reports that the Super 14 club had made secret payments of more than $300,000 during 2006 to players in direct contravention of ARU protocols.
It was stated money was hidden in Force's annual accounts and did not appear as "player payments" even though it was paid to three Australia players on Force's books.
The club and officials denied making the payments, with Western Force CEO Peter O'Meara saying the Perth-based franchise had clean hands on the way they lured high-profile players to Force.
Rugby WA chairman Geoff Stooke said the union accepted the ARU verdict, was not going to appeal and regretted events had reached this point.
"The matters of concern to the ARU related to a period when Rugby WA was battling to establish a core playing group that would allow the Emirates Western Force to be competitive," Stooke said in a statement.
"We regret that events have led to this point.
"We had a fair hearing from the ARU and believe it is in the best interests of Rugby WA to accept this decision and move on.
"The ARU has revised its player contract protocols and this will provide greater clarity for the future."
The fine will be paid over three years.
© 2007 AAP
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