The book the Melbourne Storm don't want you to read Melbourne Storm players celebrate their grand final victory in 2009. Picture: Craig Greenhill Source: DailyTelegraph PAUL Kennedy's Storm Cloud chronicles the rise, fall and rise of the Melbourne Storm. In this exclusive extract, he takes us back to 2010 when the rugby league world learned of the Storm's unprecedented salary cap rorting. Before the sun shone on April 22, word had passed around that Storm had been busted big time. In the earliest hours of the morning three gamblers placed $40 bets on Melbourne to finish last in the NRL season 2010. TAB Sportsbet took a bet for $200. Sportingbet Australia spokesman Bill Richmond said later: "You don't take a series of bets like that unless someone knows something." Within hours the odds of Melbourne winning the wooden spoon had dived from $250 to $1.01 - the sharpest and biggest betting move in Australian sporting history. Storm director Gerry Ryan started his day in Sydney, before heading to New Zealand on business. His phone rang. It was a player agent who knew something. Ryan recalled: "He told me Melbourne Storm were going to be fined a million dollars, they were going to lose a premiership and play for zero points for the rest of the year." Storm interim CEO Matt Hanson, then chairman Rob Moodie and Craig Watt had not yet arrived at the NRL offices. The three Storm representatives flew in silence. On landing, they caught a cab to News Ltd headquarters. Moodie was thinking his club would suffer a hefty fine and lose the points from matches won in the first six rounds. Watt wasn't really thinking about sanctions. He was simply preparing himself to discuss the contents of (salary cap auditor) Ian Schubert's letter, plus the three side letters. Both men noticed Hanson did not look at all well. It appeared he had not slept. In truth, Hanson had not slept soundly in the past year. They went to News Ltd headquarters first, arriving at 10.15am. At that time Hanson's best estimate was that Storm had breached the cap by $900,000 over two years (2009 and 2010). There had been no admission of wrongdoing for 2007 and 2008. Hanson had only arrived at the club in mid-2008. Cover of Storm Cloud, Melbourne journalist Paul Kennedy's new book on the Melbourne Storm's salary cap scandal. Published by Hardie Grant. Source: An inquisition began in the offices of the team owner. Peter Macourt asked many questions of Hanson. News Ltd's chief general counsel Ian Philip (also a member of the NRL partnership board) was present. Hanson disclosed all he knew. Prior to this day he was more circumspect and guarded, fearful of what may happen to the football club. Now, with Moodie at his side, he was ready to reveal everything he understood of the Brian Waldron era. By the time the questions and answers ceased, the best estimate of Storm's shame was $1.7 million in overpayments, including 2010. The grimacing trio then headed to NRL headquarters at about 11.15am. News Ltd told them to "go to the NRL and take them through it." Philip went too. Macourt explains why the lawyer went along: "To make sure what was told to the NRL was the same as what was told to us. To make sure that it's like a game of whispers, you hear exactly what they say and so News Ltd is not going to be hearing it second-hand. Storm had not sought legal assistance. Moodie considered Philip an ally. At that time he still believed News Ltd and the Storm board were on the same team and Philip was there for them. He looks back now and shakes his head. 'It would've been better off if Storm's board was chaired by a corporate heavyweight instead of someone from a university.' Moodie, Watt, Hanson and Philip arrived at the NRL in a chauffeur-driven car. Hanson spotted a news cameraman standing outside the building. "What's the media doing here?" he asked. Watt was distracted by Hanson's phone, going off like a pinball machine. "I can only assume that several player agents must have gotten word that he was about to sing and they were all trying to contact him, all at once, to persuade him otherwise," Watt remembered. One of the callers was indeed a player agent. He was chasing up monies owed. Hanson said to Moodie: "I'm just letting you know I'm resigning at the end of today, I'm done, I don't need this shit in my life anymore." NRL chief executive David Gallop's office was a small, thin room. Storm's men were ushered in. Watt sat in the corner. Hanson was on his left shoulder and Moodie was on his right. Gallop was in the centre of the room and Schubert beside him. Behind them were the NRL's lawyer and Schubert's staff assistant. There was also the NRL public relations manager. Hanson answered rapid-fire questions from the league. He conceded McManus Presents had been paying players on Storm's behalf, the club was over the cap by at least $700,000 for 2010 and side letters existed for Cameron Smith, Greg Inglis and Billy Slater. The league's lawyer challenged Hanson to produce the three side letters. The interim CEO had left them back in Melbourne. A heated exchange followed. Hanson stood up to walk out. Gallop calmed the room. Talks resumed. When pressed, Hanson estimated Storm had been over the cap in 2006 and 2007. That was before his time but he had seen the old letters of offer. He recalled his earliest memory at Storm was when he started in 2008 and Cameron Vale had warned him (Brian) Waldron was "doing stuff with the cap." He summarised: "Brian has left us with a situation that is now out of control. I suspect he knew that and that is why he left. Schubert talked about whistleblowers giving him information as evidence. It was all moving so quickly. After about 45 minutes, the Storm delegation was asked to move into another room. Gallop mentioned likely sanctions: loss of premierships and playing for no points for the rest of 2010. Hanson called Ryan and said: "I'm getting machine-gunned here." He was stunned by what was happening. Half an hour later Gallop announced the full penalties. The club had been stripped of two premierships (2007 and 2009), three minor premierships (2006, 2007, 2008) and $1.1 million in old prizemoney. Also it would be fined $500,000 and forced to play for no points for the rest of the season. The ticking time bomb had exploded. News Ltd is the publisher of The Daily Telegraph This is an edited extract from Storm Cloud: Melbourne Storm's Demise and Resurrection by Paul Kennedy, published by Hardie Grant Books. Available in stores nationally.