Eels extend open door policy to NRL over salary cap situation
by: DAVID RICCIO
July 26, 2015 12:00AM
PARRAMATTA Eels chairman Steve Sharp was told by NRL salary cap auditor Jamie L’Oste Brown that the club’s salary cap situation was ‘looking good’ less than a fortnight ago.
Sharp has also revealed that he extended a personal invitation with an ‘absolute open door policy’ to NRL chief executive Dave Smith and his executive team last Friday in a bid to prove the current board are intent on cleaning up the club’s salary cap dramas.
Sharp spoke to The Sunday Telegraph and in the wake of a fresh round of investigations the NRL declared would be undertaken following reports that secret third-party payments had been paid to several Parramatta players, including NFL hopeful Jarryd Hayne.
Parramatta have already been fined $465,000 for salary cap breaches stemming from a previous administration and the club is facing the loss of competition points next season if they fail to undertake a corporate governance review by February.
The NRL and Parramatta board continue to wrangle over who should conduct the review as Sharp was at pains to declare the club had no secrets to hide — a point, he claims, was made obvious when Brown visited the club recently as part of a midyear review of all 16 NRL club’s salary cap.
Brown is yet to submit the review to the Eels in writing.
“The week before last he (Brown) came out and he went through our salary cap and said we’re ‘
looking good,’’ Sharp said.
“As far as we were aware we got a clean-bill of health with where we are at that moment.
“We’ve put processes in place now to make that salary cap 100 per cent visual.
“We’ve got a subcommittee who monitor, review the salary cap position every week.
“I’ve also invited Dave as late as Friday and his executives to come and have a look at what our situation is and how our structure works,’’ Sharp said.
“Come to a board meeting and see what our procedures are in relation to what they perceive they are.
“I’m not taking a backward step of our club being guilty of poor management practices.
“We’ve changed all our processes and systems to make the salary cap more transparent for all the officials.
“All we can do is deal with it and move forward.’’
Sharp said the club wasn’t ‘afraid’ of the threat related to beginning next season minus four competition points.
“We respect the NRL’s right to run the game and I respect Dave Smith’s right to run the game,’’ Sharp said.
“We’re certainly going to do what we’ve been asked to do and do an independent audit and look where we can put better practices in place we will.
“The threat of the four points over our head is something we’re not afraid of. It won’t come to that.
“We’ll deal with that when it comes up.
“As I said to Dave, he needs to send his executive team out and have a look what we’ve done over the last two years before making decisions or references as to how it as the moment.’’
The potential penalty relates to the NRL’s demand that the Eels undertake a governance review by an independent auditor.
“I don’t know if it’s an independent audit if they’re telling us who to use,’’ Sharp said.
“I don’t want to challenge the integrity of Price Waterhouse Coopers because they’re a huge reputable company and we believe they’re the right company.
“But what we’re also going to do is go through a tender process and invite other organisations to take us through that process.
“It may not be PwC, but I’d like to think this organisation has a good understanding of the game of rugby league.’’
Sharp said he had an indication of why the club was in such a calamitous state at the moment, but he underestimated the magnitude of the salary cap dramas which were brought to light this week.
“I’m the first to admit that when I first became involved with the top level board of this club, I didn’t foresee the mess was as huge as this,’’ Sharp said.
“From my previous position with the PDRL (Parramatta District Rugby League) board I could see over the fence that things weren't right, that’s why I initiated my move to get in there and sort it out.
“The damage that was done in those four or five years was enormous.’’
STEVE SHARP’S VIEW ON.....
LOSING FOUR COMPETITION POINTS IN 2016
“The threat of the four points over our head is something we’re not afraid of. It won’t come to that.
THE DAMAGE
“I’m the first to admit that when I first became involved with the board, I didn’t foresee the mess was as huge as this.
ON THE CLUB’S LATEST DRAMA
“The damage that was done in those four or five years was enormous.
“We need to get our reputation back intact.
THE NRL TAKING OVER ADMINISTRATION
“The difference between our club and the other (NRL run) clubs is that they all had financial problems. Our club doesn’t have that.
“Financially we’re putting a good structure in place to sustain the future of he Eels.
MOVING FORWARD
“We’ve put together a board with the skill set that we think is going to have great benefit for the club.
