Jarryd Hayne was the beneficiary of secret payments orchestrated by the Parramatta Eels, all hidden from the NRL
EXCLUSIVE Phil Rothfield and Nick TabakoffThe Daily Telegraph
THE Parramatta Eels secretly arranged almost $500,000 in deals for failed NFL *convert Jarryd Hayne since 2013, according to new *revelations in an NRL breach notice against the club.
Official documents and boardroom minutes show a trail of salary cap discrepancies in the star full-back’s third party deals with the club from 2013 to 2015, cash payments, first class overseas travel and car expenses *adding up to $465,000 — all hidden from the NRL.
On an extraordinary day in which Hayne quit a US gridiron career to chase Olympic Gold with Fiji’s Rugby Sevens team, the full findings of the notice against the Eels revealed:
* In a June 2015 meeting, board member Tanya Gadiel talks about the “f-word” — alleged “fraud” — in relation to one of the club’s many third party deals;
* The board and senior management is actively aware in multiple meetings about many individual illegal third party deals. For example, in December 2013, *several members actively discuss the fact that the club had entered into a “side arrangement” with Hayne that was likely to be in breach of *salary cap rules;
* In a June 2015 meeting, another board member Andrew Cordwell instructs the tape recorder be switched off when the group is in discussion about former Test forward Anthony Watmough and a third-party deal;
* The club compiled an *undisclosed payments register in late 2013 and early 2014, which featured details of illegal commitments for multiple years; and
* At one board meeting *former CEO Scott Seward compares the club’s salary cap crisis to other clubs’ past scandals, claiming it is “not the Bulldogs and it’s not the Melbourne Storm”.
The revelations follow a two-month NRL forensic audit that was prompted by a Daily Telegraph series of investigations that first established systematic cheating of the salary cap at the club.
Official documents and board room minutes show Hayne was secretly paid $465,000 which was officially recorded on a heads of agreement letter but never reported in the salary cap.
Legitimate third-party payments to players must be done on an arm’s length basis from the club. It is a breach of the salary cap rules if a club makes a payment on behalf of third parties.
There are no suggestions Hayne was aware his payments were contrary to NRL rules or that Hayne has done anything wrong.
The bombshell revelations are part of the official NRL breach notice that has already cost the Parramatta Eels 12 competition points this season, forced Watmough into retirement and sent highly- rated hooker Nathan Peats to the Gold Coast Titans.
The documents show Hayne was guaranteed $15,000 in 2013, $225,000 in 2014 and $225,000 in 2015. Hayne announced his NRL retirement to pursue an NFL career in October, 2014.
The money was paid in various ways but a secret *recording from Parramatta board minutes obtained by the integrity unit reveal he did not fulfil some sponsorship agreements and failed to turn up to some functions that were part of his deals.
Also, a car payment of $15,000 was made in 2014.
There was another $15,000 in travel expenses to Seattle where Hayne flew — in first class — that was paid for by the club but not *disclosed in the salary cap.
In December 2014, Parramatta Leagues Club transferred Hayne $52,000 — $26,000 of that amount to his manager Wayne Beavis and the other half to a company called JH Promotion.
The breach notice also shows an awareness of the general rorting of the cap at the club. At one point in the June 2015 board transcripts, Gadiel talks about a payment made by a third party to Watmough, which was paid by the club through inflated invoices. Chairman Steve Sharp said the club was effectively paying the deal: “So she was going to increase her charges to us. So we are paying the third party deal.”
But Gadiel said: “Sorry, that’s the f-word, that’s fraud isn’t it. That is fraud.”
The documents show from the time of the appointment of Seward as CEO in September 2013, he was approached by player agents concerning payments that the club had committed to but remained unpaid.
The following discussion took place at a board meeting on December 10, 2013 to discuss the money owed to players but undeclared to the NRL following an approach by Beavis about a payment.
SEWARD: The consequences are enormous if we stuff it up, because it is what it is. It’s supposed to be arm’s length; it’s actually supposed to have nothing to do with us. So we’ve just got to make sure we do it the right way.
STEVE SHARP: Melbourne stuffed it up.
SEWARD: Melbourne stuffed it up, Canterbury stuffed it up, you know that’s ...
UNKNOWN: It’s important we do it right.
SEWARD: It’s important we do it right.
UNKNOWN: Because Jarryd is a real concern ...
SEWARD: Jarryd is a *massive concern ...
The breach notice shows another six players, including Tim Mannah, Fui-Fui Moimoi and Chris Sandow, had third party deals not declared. There is no suggestion these players were aware their deals breached the rules or have done anything wrong.
