It is the same as what is happening with Melbourne. There is no way that the NRL wants an average Storm, so they are given a leg up, year after year. The AFL have designs on the Gold Coast, so the NRL wants them to be highly competitive before an AFL club is formed, so I don't think that the salary cap applies to the Titans. The NRL is a corrupt organisation - Borrowing a quote from Animal Farm : " All teams are created equal, but some teams are more equal than others".
By the way, is it illegal for the owners of a game to own two teams? Seems like a conflict of interest to me. I doubt it would happen in any professional European soccer league, NFL, NBA or major league baseball.