The chairman and chief executive of News Corporation, Rupert Murdoch, says the revelations of massive salary cap breaches by the Melbourne Storm are embarrassing for the company.
But Murdoch says the company, which owns the Storm and half the National Rugby League competition, didn't drop the ball by failing to detect the cheating in Melbourne
He says they didn't enjoy it but it certainly was not their doing and the company took immediate action when they found out what was happening.
Murdoch also says News Ltd are far from sure the Storm's the only club involved.
He wouldn't respond when asked whether the company's position about owning the club or maintaining its half-stake in the NRL had changed after the salary cap breaches.
He says he's too far removed from the situation and doesn't know enough about it.