Parramatta Eels could have escaped sanction if club used moratorium loophole
Date
March 24, 2016 - 9:04PM
Adrian Proszenko
Chief Rugby League Reporter
Parramatta officials ignored advice to come clean to the NRL about suspected salary cap breaches despite the fact a provision in the rules may have allowed them to escape sanction had they done so.
The governing body is investigating the Eels over a series of potential cap rorts, raising the prospect of punishments including the docking of competition points, the sacking of officials and the imposition of fines.
Former Parramatta CFO Ed Farish, who has an intimate knowledge of the salary cap following a stint in head office, warned Parramatta powerbrokers to self-report to the NRL over a series of questionable practices, most notably a third-party agreement to star forward Anthony Watmough that was not properly disclosed. It's understood the NRL is in possession of correspondence between Farish and club officials who chose not to heed his advice in what shapes as a smoking gun into the probe of dubious TPA payments. The NRL also has a record of every call, email and text between officials and sponsors after sending forensic investigators to profile all electronic equipment as part of their probe.
Under section 16 of the NRL's Code of Conduct – which covers player contract and remuneration matters – "any Club or person bound by this Code reasonably suspects that a breach of the NRL Rules … has occurred, it is the duty of that Club or person to report that suspected breach to the NRL Integrity and Compliance Unit as soon as possible after forming the relevant suspicion."
Had Parramatta done so, the club and its administrators may have been able to avail themselves of a moratorium period in which penalties are waived to encourage full disclosure of suspected breaches.
Article 54 of the code states: "For the purpose of encouraging Clubs, Players, Match Officials and Game Participants to voluntarily disclose past and current practices in breach of this Code, the Board may declare, by written notice, a moratorium period during which the making of a voluntary disclosure which might reveal evidence of a breach of this Code will not result in any penalty being imposed upon:
The Club, in any case where the Club makes the disclosure;
The Game Participant, in any case where the Game Participant makes the disclosure;
The Player, in any case where the Player makes the disclosure; or
The Match Official, in any case where the Match Official makes the disclosure."
The moratorium clause is also mirrored in the NRL Contract and Remuneration Rules, which adds that any disclosures made will remain confidential.
"The new board and CEO are certainly aware of the rules and would exercise our rights in accordance with them if deemed relevant and necessary," a Parramatta spokesperson said.
"The new board and CEO continue to work closely with the NRL. We've provided all relevant information we are aware of. We are determined to get to the bottom of all allegations and continue to reform the club."
Farish made his recommendation to alert head office before the club signed a statutory declaration last October guaranteeing salary cap compliance. The failure to do so heightens the pressure on the board and executive, most notably chairman Steve Sharp, to stand down. However, the former premiership-winning forward has publicly stated he has no intention of doing so.
The moratorium, had it been sought and granted, would have allowed the Eels to avoid the uncertainty currently hanging over an otherwise promising premiership campaign.
Newly installed NRL CEO Todd Greenberg has refused to buy into potential punishments while the integrity unit finalises its investigations. However, the former Bulldogs boss has stated compliance with the salary cap is crucial to the integrity of the competition.
