Parramatta Eels fear takeover bid after NRL salary cap verdict
Date
May 1, 2016 - 10:00PM
Chris Barrett
Sports Writer
The scene has been set for what shapes as one of the most turbulent weeks in Parramatta's history, with the Eels claiming that plotters are awaiting the release of the NRL's salary cap findings to "come out of the long grass and do the privatisation deed".
On Tuesday the NRL is expected to announce the outcome of the Integrity Unit's investigation into Parramatta's third-party deals, a development that depending on the severity of any penalty determined by chief executive Todd Greenberg could cripple an otherwise promising season.
Parramatta chairman Steve Sharp declared on Sunday the club was ready to appeal sanctions in the courts, arguing they have not been afforded "natural justice and procedural fairness". Sources close to the board say they have already assembled a team of barristers ready to take on League Central.
As they await a breach notice directors are also readying to front members at Monday night's annual general meeting of Parramatta Leagues Club at which the board, which runs the Eels, will attempt to to fend off what they believe is a behind-the-scenes campaign to capitalise on the cap drama and privatise the NRL club.
"It's an ever-present concern," Sharp said. "Right now the proponents are hoping the salary cap investigation weakens the club so they can come out of the long grass and do the privatisation deed."
They won't utter his name publicly but members of the Eels hierarchy say they are wary of former Macquarie Bank executive Bill Moss, who told Fairfax Media last year he would "be happy to be part of a syndicate" to facilitate privatisation, believing it to be the only way forward for a club beset by internal politics and dysfunction in recent years.
It is unclear whether Moss retains a desire to be involved in changing the ownership structure of the Eels, and he did not return calls on Sunday.
However, the administration's fear about a takeover bid on the back of salary cap sanctions has led it to take a resolution to Monday's AGM that, if approved, would make the club a core property and give members more say in any attempt to sell it off.
That proposal needs a 50 per cent vote to pass, but if it does any future board would have to gain a 75 per cent majority of Leagues Club members' approval to offload part or all of the Eels. At present they can theoretically do so without consulting the membership base.
"We believe there is a campaign to privatise the Eels," Sharp said. "We are against that. Completely against it. The resolution sends this message as well as making any future attempts to privatise the Eels much more difficult. Such a decision needs to be made by the community not a board.
"Part of the current board's resilience comes from wanting to stop this agenda. There is a 'privatisation faction', it's no secret, but I believe that any ownership issues should be determined by our members."
Ironically, two years ago Sharp attempted to bring Moss onto the board as an independent director before the proposal was rejected by members at a typically heated AGM.
On Sunday, the chairman said the Eels' request to speak to Greenberg regarding their concerns about the cap investigation had not been met.
"It is the club's intention to analyse in detail any decision," Sharp told members in an email sent on Sunday afternoon. "We want to make sure that the investigation has treated our club fairly. We have asked and continue to ask for natural justice and procedural fairness.
"This means we are asking for a fair hearing. For allegations to be tested. That we have the chance to face our accusers. That if there are penalties then they are appropriate to the alleged breaches. These are the reasons why we sought assurances from the NRL that we will be allowed the chance to discuss our concerns about the investigation before any decisions were made. To date this has been denied.
"As a result our club also reserves all of our legal rights. Rights which we will assert if we believe we have not been treated fairly. We are prepared to fight through the courts if need be."
An NRL spokesman said the Eels had been given ample opportunity to provide any information to the investigation.
