Assuming the Parramatta Eels can make adjustments and come in under the salary cap, they will be allowed to accrue competition points while five directors pursue legal action against their suspension after the NRL had an apparent last-minute change of heart.
In the NSW Supreme Court on Friday morning, Arthur Moses, SC, the barrister for the "group of five" including club chairman Steve Sharp, said the NRL had last night advised the club it can accrue points notwithstanding the court action.
The NRL may deduct some or all of the competition points accrued by the club during the 2016 season, including the 12 points won to date, when it makes a final decision on the club's punishment in June.
The nature and extent of any sanction won't be determined until the club has had the opportunity to plead its case to the NRL.
The NRL has attempted to claim there has been a "misunderstanding" about the status of the competition points.
But Mr Moses said NRL CEO Todd Greenberg had made public statements to the effect that the club could not accrue points while the injunction was ongoing.
"We received a letter late yesterday [that said] while the injunction is on foot we won't stop you from accruing points, while you are below the salary cap," he told the court.
The NRL's barrister Lachlan Gyles SC said the NRL wanted the court to lift the injunction granted on Tuesday temporarily preventing the NRL from restricting the functions of the directors and club officials.
"We say there is no need for the injunction," Mr Gyles told Justice James Stevenson. "We say it's causing confusion".
However, Justice Stevenson extended the injunction until Monday.
Mr Moses said the directors and officials wanted the matter heard as soon as possible and wanted a final hearing next week.
"[The NRL] started it, they should finish it; it's not fair for this to be dragging on," Mr Moses said.
But Mr Gyles said the NRL needed more time to respond to the case, which may include lodging a cross claim.
"The NRL is happy for these individuals to have their day in court in the near future but they need a fair opportunity to deal with the case," he said.
The NRL has made a claim for confidentiality over the 64-page breach notice given to the Eels. Mr Moses told the court the notice contained statements by former Parramatta CEO Scott Seward.
Mr Seward has given a 37 page statement making allegations as to what each of the five individuals knew.
"[The NRL] has relied on the former CEO to make adverse inferences," Mr Moses said.
