Fears that Brisbane is set to pinch NRL supercoach Craig Bellamy are central to Melbourne Storm’s legal stoush with former CEO Dave Donaghy, court documents have revealed.
The battle on Monday landed in the Victorian Supreme Court where the Storm have applied for an injunction preventing Mr Donaghy from taking up his role with their NRL rivals.
The feud over Mr Donaghy between the high-powered clubs has become bitter as the Storm seek to enforce a six-month non-compete clause which would prevent him from taking the reins at Red Hill until August 1.
Watch Live & On-Demand coverage of NRL pre-season trial matches on Kayo. New to Kayo? Get your 14-day free trial now & start streaming instantly >
The Broncos announced in February the former journalist would take over from outgoing boss Paul White, who left the club last week after ten years in charge.
According to an affidavit filed by Storm lawyer Leon Zwier on behalf of the club, Mr Donaghy had agreed to a clause in his contract which stated he could not work for a competitor for six months after the termination of his employment.
Mr Donaghy has maintained that he would not divulge confidential information which he obtained during his stint as CEO from July 2015 to January 31 this year.
Get all the latest NRL news, highlights and analysis delivered straight to your inbox with Fox Sports Sportmail. Sign up now!!!
CASUALTY WARD: Storm star out for a month, Manly hooker curse strikes again
WATCH QUESTION: Teen sensation scores two tries in grown-up debut
video-start-screen__title">Wests Tigers punish Sea Eagles
1:03
“If a rival wants to beat Storm, it can do it on its merits,” Mr Donaghy said in his affidavit.
“It is not going to get my assistance by passing on information that is rightly Storm’s.
But the Storm are arguing Mr Donaghy had access to player and coach contracts and details of sponsor and government agreements, which could be used by the Broncos to steal players, staff and clients and give them an unfair competitive advantage.
“Donaghy knows the details of Craig Bellamy’s employment with Melbourne Storm,” Mr Zwier said.
“Mr Bellamy is a leading coach in the NRL. His contract expires next year and will be up for renegotiation.
“The Broncos are trying to recruit Mr Bellamy as a coach or consultant. Donaghy has a pre-existing relationship with Bellamy and is aware of the terms that Melbourne Storm is prepared to offer Mr Bellamy.”
MORE NRL NEWS
WHAT WE LEARNED: Broncos’ bad habits return; warning signs for Dragons
181 OFF-CONTRACT STARS: Souths skipper’s standoff; Five clubs chase Eels flyer
‘GOT THE S***S’: Broncos great in pub fight with Walters’ assistant
‘TIME FOR POTENTIAL IS OVER’: Legend calls on Latrell to become NRL’s ‘best’
The Broncos have on three previous occasions failed to convince Bellamy to return to Brisbane, where he began his career as an assistant coach, and were reported to be ready to offer him a position in their football department above new coach Kevin Walters.
video-start-screen__title">Harry Grant injured in trial
1:13
Mr Donaghy also had valuable salary cap information about two Storm players whose contracts are currently being renegotiated and which marquee players from rival clubs they were targeting for 2022, Mr Zwier said.
The Storm also argue he had access to the club’s HR drive, including a top secret folder which set out confidential salary cap and list management information.
Included on the drive was the club’s salary cap calculations and road map for the next four years and modelling “on salary cap strategies until 2024 (which frames player targets)”.
They also pointed out that he had access to a secret “application” which was created in conjunction with the University of the Sunshine Coast which analyses statistics to determine which players are “elite” and was used to prioritise signing targets.
As well as earning a $457,000 wage for the 2020 season, the Storm also in 2017 paid, by way of a loan, the stamp duty on the purchase of Mr Donaghy’s $1.4 million home in the affluent beachside suburb Beaumaris.
TEENAGE SENSATION: Suaalii set for NRL exemption after dream trial debut
‘NOT NRL STANDARD’: Dragons’ pack roasted over ‘lack of desperation’ in defence
TRIALS WRAP: Maguire’s $800k dilemma; Roosters teen sensation lives up to hype
HEADS TURN: Why banned player manager Moses was on hand at Suaalii’s debut
video-start-screen__title">Bunnies hold on to Charity shield
2:26
“Melbourne Storm provided the funding to Donaghy on the basis that he acknowledged and agreed to be bound by every aspect of his employment contract, including the restraints,” Mr Zwier said.
In May 2018, the Storm agreed to forgive parts of the loan if Mr Donaghy agreed to remain with the Storm.
However Mr Donaghy has argued: “The agreement was in recognition for service as the lowest paid club CEO in the NRL.”
Mr Donaghy has claimed that the Storm have not paid him tens of thousands in his entitlements.
He said amongst the outstanding money was a $50,000 bonus, a termination payment, payment of his long service leave entitlements and a $31,500 reimbursement after his salary was docked during the COVID outbreak in 2020
video-start-screen__title">Sam Walker dazzles in trial
0:40
Mr Donaghy represented himself before the Supreme Court where it was heard that last year all Storm staff had their wages initially docked by 50 per cent between April and May due to the epidemic, however all those payments were eventually reinstated except for his.
If it is found that the Storm have not met their obligations, the non-compete clause could be considered void, which would open the door for Donaghy to begin with the Broncos immediately.
Barrister Jeffery Gleeson QC, who represented the Storm during the hearing, said that Mr Donaghy had not met the criteria to be paid his bonus.
Justice Michael McDonald cast doubt on whether the clause, which had sidelined Mr Donaghy, was fair and legally enforceable.
As well, he pointed out that after Mr Donaghy last year informed the Storm that he was in discussions with the Broncos, the club’s chief financial officer Ashley Tucker was on October 29 installed as an acting CEO.
Between then and when Mr Donaghy left the club, he reported to Mr Tucker and Justice McDonald said that he was effectively “demoted”, despite having a “concrete” contract with the club.
video-start-screen__title">Latrell DOMINATES in 1st half of shield
1:37
Justice McDonald questioned whether his six-month non-compete period therefore should have begun on November 1, which would mean he would be available to start work with the Broncos on April 1.
“If I’m restrained until the 1st of August 2021, the Broncos may very well go elsewhere,” Mr Donaghy told the court.
The matter will be subject to a hearing until on March 17 with Mr Donaghy agreeing not to begin with the Broncos until the matter is finalised.
– .
