NRL: Titans refute salary cap breach claim

Gold Coast chief executive Michael Searle has claimed his club is the victim of a smear campaign after the NRL launched an investigation into allegations the Titans had breached the salary cap.

The allegations, raised by a former sponsor who is involved in a legal dispute with the Titans over the completion of its multi-million-dollar training facility, were taken to the NRL yesterday, according to the Australian newspaper.

The NRL later confirmed it had launched an investigation into the claims, which revolve around an alleged agreement to build a A$400,000 house for Titans captain Scott Prince free of charge.

Both the Titans and Prince have strenuously denied the allegations and the matter has been placed in the hands of the club's lawyers.

"We take the charges very seriously," Searle said.

"We have conducted an investigation some weeks ago. We supplied the information to the NRL. The allegations are lies. We have put the matter in the hands of our lawyers to pursue defamation action on behalf of Scott and the club."

NRL chief executive David Gallop confirmed the information had been passed on to salary cap auditor Ian Schubert:

"We will certainly look into it further, but at this stage we've spoken to Michael Searle and he strongly denies any breach of the cap and has offered complete access to the salary cap auditor to examine all accounts," Gallop said.

It is also understood the club was the subject of a A$1.4 million extortion claim.

The Titans have been involved in a bitter legal dispute with builder Simcorp, and its owner Alex Simpson, over the completion of their Centre of Excellence.

Simcorp lodged a Supreme Court claim for A$4.2m last month in allegedly unpaid project fees after sub-contractors walked off the job and the Titans employed security guards to lock the building company out of the site.

The Titans are yet to move into the facility but the allegations have the potential to take the gloss of a perfect start to the season by the club.

The Titans have won their opening two games but their standing as one of the game's flagship clubs could take a hit.

While Searle insists the allegations are unfounded, the repercussions could be devastating if the NRL finds they have substance.

Penalties for salary cap breaches range from competition points to fines. Eight years ago the Bulldogs were docked 37 points and hit with a big fine after being found guilty of significant breaches of the cap.

Meanwhile, the Gold Coast and the Bulldogs have agreed resolution on the Ben Hannant issue is needed after Titans coach John Cartwright was yesterday forced to quell panic among his players.

Prince warned management against signing Hannant, saying it could cause team disharmony. However, Cartwright dismissed Prince's concerns saying any offer to Hannant wouldn't start until 2011.

Hannant is into the second year of a three-year deal but has been seeking an early release.