Walt Flanigan
Referee
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What a shame.
Don't you mean sarcasm?
What a shame.
Police begin investigation into Parramatta Eels 'gang of five' officials
Date
June 9, 2016 - 6:02PM
Adrian Proszenko
Chief Rugby League Reporter
Police have launched a formal investigation into the Parramatta Eels, raising the prospect of fraud charges being laid as a result of the NRL's investigation into salary cap rorting.
Fairfax Media has been told Arthur Katsogiannis, the Commander of the Fraud and Cyber Crime Squad at New South Wales Police Force, broke the news to club officials on Thursday.
The development comes as the club prepares its response to the NRL breach notice by Friday's deadline. "Following a review of the report, an investigation has commenced," a NSW Police spokesperson said. "At this stage, no other information is available."
Five key officials – chairman Steve Sharp, deputy Tom Issa, football manager Daniel Anderson, CEO John Boulous and director Peter Serrao – are alleged to have arranged, or been aware of, payments to players outside of the game's rules.
A key component of the NRL's evidence against the club and the individuals stems from the recordings of board meetings, in which directors openly discussed whether they had committed "fraud" in paying players more than $3 million over the salary cap since 2013. The governing body has alleged the payments were via third-party arrangements, cash and inflated or fictitious invoices. The maximum penalty for fraud is 10-year imprisonment.
The Australian Tax Office is also looking into the the matter, while Liquor & Gaming NSW is investigating whether the Parramatta Leagues Club breached the Registered Clubs Act.
The news is another blow to the so-called "gang of five", who on Tuesday lost a Supreme Court bid to have the NRL's suspensions declared invalid. The NRL has indicated they will be seeking costs, raising the prospect of the administrators becoming personally liable for the fees if they aren't covered by directors' insurance.
It's understood the officials were hopeful the NRL may reconsider its hardline stance - which included provisionally stripping Parramatta of 12 competition points, their Auckland Nines title and fining the club $1 million - once their responses to the breach notice had been submitted. However, it appears more feasible that penalties would be increased rather than decreased should more information come to light.
After forensically studying more than 700,000 documents, the NRL alleged the Eels had illegally overspent on players to the tune of $3 million since 2012. One of the dubious deals included Parramatta paying a clothing provider, Zibara, at least $80,000 for goods that the club has no record of receiving. It's likely the transaction is one of several to pique the interest of the three statutory bodies - the police, the ATO and L&GNSW - currently looking into the matter.
While L&GNSW has no jurisdiction over the Parramatta Eels or its board, given the same directors sit on the Parramatta Leagues Club board there is the prospect they could be deemed not "fit and proper" to hold their positions.
The Eels are effectively operating without a chief executive, chairman or football manager, with a divided board rejecting a proposal to install PLC boss Bevan Paul as group CEO to fill the void.
It's expected the NRL will take about a week to consider Parramatta's submissions before deciding whether its provisional penalties will stand. The club is hamstrung in its quest to recruit and retain talent until its salary cap position is clear, although it appears the Eels will have to carry about $500,000 of payments into next year's cap.
Parramatta coach Brad Arthur and his players have been somewhat shielded from the latest drama, as they are in camp in Darwin in preparation for their 'home' clash with the Gold Coast on Saturday night.
Parramatta Eels to be hit with $1.3 million hangover from salary cap rorts
Adrian Proszenko
Chief Rugby League Reporter
Parramatta will have to carry more than $1.3 million worth of shonky promised payments in their salary cap during the next three years as the fallout from their systematic cheating threatens future premiership campaigns.
The biggest beneficiary of the payments in future years was to be Kieran Foran.
The Eels have promised 10 of their biggest names undisclosed payments for next season totalling $688,600, which the NRL has uncovered as part of a comprehensive forensic audit of the club. Further secret payments have been set aside for 2018 totalling $448,600, while $175,000 of off-the-book money was set aside for 2019.
The NRL will insist the clandestine deals, totalling $1,312,200, be added to the embattled club's salary cap over the next three years. The development will cruel Parramatta's ability to retain and recruit talent and ensure the hangover from their salary cap rorts continues for a long while yet.
Fairfax Media has obtained a copy of the breach notice the governing body sent to the blue and golds, which details the allegations against the club and the five current officials who are allegedly complicit in the cheating. Unless Parramatta and the so-called "gang of five" officials can convince the governing body that they are manifestly excessive, the provisional sanctions which include the stripping of 12 competition points and a $1 million fine will stand.
The NRL salary cap will rise to $7.1 million next season, but Eels coach Brad Arthur will only have $6,411,400 at his disposal as the club continues to pay for the sins of its administration.
The biggest beneficiary of the payments in future years was to be Kieran Foran. The troubled Parramatta captain, who has been ruled out for the rest of the season with injury, was scheduled to receive $450,000, spread over the next three years. His former Manly teammate, Anthony Watmough, was to receive $225,000 outside the salary cap next year and a further $175,000 in 2018.
Parramatta is fortunate the former NSW and Australian forward's retirement due to a career-ending knee injury freed up some space, with the majority of his long-term deal covered by insurance and not counting against the cap. However, the Eels will have to wear the $400,000 the club was attempting to pay him over the next two seasons.
Other player payments that will be loaded into future cap payments include: Beau Scott ($40,000 over two years), Semi Radradra ($157,200 over two seasons), Kenny Edwards ($20,000 in 2017), Manu Ma'u ($40,000 in 2017), Michael Jennings ($75,000 over three years), Peni Terepo ($10,000 in 2017), Tepai Moeroa ($20,000 in 2017) and Tim Mannah ($100,000 in 2017).
There is no suggestion that any of the aforementioned players were aware that funds slated for them were in contravention of NRL rules. The NRL stated in the breach notice served to the club that the future undisclosed remuneration commitments "will be counted in the Salary Cap Calculations" for the ensuing seasons.
The club responded to the breach notice by Friday's deadline and is likely to argue that the penalty is manifestly unfair. However, Parramatta's antagonistic approach to the NRL during the investigation is likely to work against them.
Powerbrokers at Rugby League Central, in possession of damning evidence of illegal payments, gave their Eels counterparts at least half a dozen opportunities to come clean. However, Parramatta administrators continually denied knowledge of impropriety and even threatened a public relations war against the NRL over their probe.
In what could be a further hit to Parramatta's ability to retain and attract players, Will Hopoate's contractual dispute remains before the courts. Should the Canterbury recruit win his case and the NRL deems any payout must count against the salary cap, the blue and golds will only be able to spend a fraction of the money on player payments of their rivals.
The developments threaten the chances of the club retaining Corey Norman, although the drug possession charges laid against the off-contract playmaker are likely to lower his market value. It also lessens the prospect of the club having the funds required to lure code-hopper Jarryd Hayne back to western Sydney.
They must like losing.
The irony is delicious.
Who do you support, again?
So is the involvement and seemingly glee-filled interest taken by Storm fans in this thread.
The funny thing is the Storm are still benefiting from the rort.
The funny thing is the Storm are still benefiting from the rort.
They never really got punished as they won a few comps before it all came to light. Had a season where points were stripped. Lost a couple of players.
Yeah, and having those premierships stripped wasn't enough of a punishment?