Parramatta Eels blame former CEO Scott Seward for salary cap breaches
Exclusive by sports editor
David Mark and
Jennifer Browning
Posted 13 minutes ago
The board of the Parramatta Rugby League Club sought to blame its former chief executive for the salary cap breaches, which cost the club $1 million and 12 competition points.
The club says former chief executive Scott Seward admitted in a board meeting that he had "done things he was not proud of".
The ABC has obtained Parramatta's submission to the National Rugby League's breach notice, which contains the allegations against Mr Seward.
The ABC has not been able to substantiate the allegations against Mr Seward, who was Parramatta's chief executive from September 2013 to June 2015.
In the submission, the club accepts that in the period Mr Seward was the chief executive of the club "there was conduct which was in breach of the NRL Rules".
The document refers to that breach as "the Seward Conduct".
It says, "the Seward Conduct is a source of great regret to the Club."
"As Seward was an employee of the Club, it is accepted that responsibility for the Seward Conduct, belongs in part to the Club."
The breach notice was issued in May. In it, the NRL accused Parramatta of salary cap breaches dating back to 2013 with the knowledge of the club's board and executive.
But the Parramatta board's submission said the club was not responsible: "The Seward Conduct occurred without the knowledge or permission of the board or the club."
Seward says board was aware of third party agreements
Just days before the breach notice was issued, Mr Seward gave the NRL a statement which said otherwise and which the ABC has also obtained.
In it he stated: "I believe that Board members' preference was not to know the details of the additional payments of promised TPAs (Third Party Agreements)."
He said "the entire Board was aware of the Club's practices regarding TPAs."
In its submission to the NRL, the club stated it was Mr Seward who allegedly made undisclosed payments to players or their managers.
These included forwarding $40,000 to the agent of former Eels star Jarryd Hayne, who had already left the club to pursue a career in the NFL.
The submission said the Parramatta board became aware that Mr Seward was misleading it in June 2015 about offers he was making to players including Kieran Foran, who was yet to join the club.
Foran recently requested an exit from the club.
The submission stated that the club, "upon discovering some but not all aspects of the Seward Conduct, took immediate steps to remove him from his role as CEO."
Mr Seward resigned as chief executive in mid-June 2015.
The submission said a deed of release was executed between him and the club that records that "the Club has alleged Mr Seward has sought to enter into agreements on behalf of the club that, if finalised, may have contravened NRL Salary Cap Rules and/or Sponsorship Rules".
The Parramatta submission was ultimately unsuccessful.
On Saturday, NRL chief executive Todd Greenberg said that he had carefully considered the responses from the Parramatta club and five officials to the breach notices issued on May 3.
"While each made points worthy of consideration, there was insufficient information in those responses to warrant any change to the penalties originally proposed in the breach notices," Greenberg said.
The club was fine $1 million, docked 12 competition points and five club officials — chairman Steve Sharp, deputy chairman Tom Issa, director Peter Serrao, chief executive John Boulous and football manager Daniel Anderson — were deregistered.
