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Read more: http://www.smh.com.au/rugby-league/...eer-coaster-20131031-2wm0v.html#ixzz316PTJ1SDRoy Spagnolo: The bonuses, the beat-up car and the beer coaster
Date November 1, 2013
Chris Barrett
Roy Spagnolo was cast out by Parramatta after being accused of more than 30 instances of financial impropriety, from procuring free memberships and travel for family and friends, improperly paying large bonuses to executives and even allegedly using the back of a beer coaster to bill the club $30,000 for a Christmas party held at his house.
The former Eels chairman was banned from holding a directorship at Parramatta for two years after fronting the board this week.
The Star of the Sea apartments in Terrigal. Photo: Supplied
On Thursday, NSW Hospitality Minister George Souris said the Office of Liquor, Gaming and Racing would investigate the contents of a 900-page report into the management practices of the former Parramatta Leagues Club administration and could refer matters to NSW police.
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Spagnolo, who was defeated at the club election in May, features heavily in the audit, conducted by Russell Corporate Advisory.
The firm's findings included a series of allegations that were then put to Spagnolo, who owns an accountancy business, in a show-cause letter before his appearance before the board.
Spagnolo denied any wrongdoing on Thursday and said he had no intention of vacating the chairmanship of the Eels' junior body, the Parramatta District Rugby League Club. When contacted by Fairfax Media he said he believed he had been reprimanded by the board for ''two administration errors''. ''There is just no impropriety. I haven't done anything wrong and I'm not going anywhere,'' he said.
Among the claims are that he authorised the issue, without payment, of at least 78 memberships, including 13 in the Spagnolo family name prior to the PDRC elections in December 2012, at which he was re-elected chairman.
It is also alleged that similar issuing of free memberships - understood to be season-ticket packages - was conducted in 2010 and 2011, at a cost of as much as $22,000 to the Eels. Despite not being financial members, those people crucially gained voting rights at the election, it is claimed.
Spagnolo denies the allegations, saying the memberships were related to ''sponsorships and gratuity payments''.
Spagnolo was also accused of authorising without proper approval a $92,998 bonus to then Leagues Club chief executive Bob Bentley in May, signing off on the payment after he had failed to regain the chairmanship or a spot on the board at the PLC election that month.
It was further alleged he had earlier handed another bonus of $20,000 to Bentley in February without approval and of giving Bentley a pay increase in October 2012 without it being ticked off by the board as is required in the Registered Clubs Act.
Bentley, who was sacked by Steve Sharp's new board in July, was on a contract that contained no key performance indicators and had a clause that gave him 15 months' pay if it was terminated. The report found that Bentley directed a payroll staff member in November last year to increase his salary because Spagnolo had approved it.
Bentley's contract was signed off by Spagnolo and former board member Sid Kelly and it is claimed the terms of the deal were not made clear to Kelly.
Spagnolo says the pay rise and bonuses were contractual, and that the bonus was issued by him to Bentley after he had lost at the election because ''I hadn't paid it earlier, that's all''.
Attempts to contact Bentley yesterday were unsuccessful.
Spagnolo was also asked to explain allegations of improperly claiming money from the Leagues Club without formal paperwork. Fairfax Media understands a notable example is $30,000 he is said to have claimed for the cost of a Christmas party held at his house last year for players, Leagues Club staff and football club officials. It is understood the figure was recorded on the back of a beer coaster but without any details or particulars of how the money was spent.
Spagnolo disputes that he ever made a reimbursement claim on a beer coaster, saying instead that he used the back of a piece of paper to pen a handwritten invoice for $2000 for some of the party's costs - at the insistence of the board.
Spagnolo was also alleged to have incurred substantial costs to the Leagues Club on travel for himself, relatives and friends, including at least two stays at the Star of the Sea apartments in Terrigal in 2011.
It was claimed that no details of these trips were provided in seeking reimbursement, in contravention of the Corporations Act. Spagnolo owns a unit at the complex, where a three-bedroom apartment with ocean views can be rented for $1700 a weekend. Spagnolo said the club was invoiced because players were staying at Terrigal, including in his apartment, for a player camp and that the money was not spent on accommodation for family and friends.
The Eels' suspension of Spagnolo immediately gained the attention of the state's liquor, gaming and racing regulator on Thursday. ''I am advised that the Office of Liquor, Gaming and Racing's director of compliance is meeting with the independent auditor from Russell Corporate Advisory today,'' Souris said. ''The Office of Liquor, Gaming and Racing [OLGR] will determine any matters which fall under its jurisdiction and any potential breaches of the Registered Clubs Act.
''Any relevant matters will be fully investigated and appropriate action taken to protect the best interests of members of the Parramatta Leagues Club. Any matters outside OLGR's jurisdiction will be referred to the relevant investigative body such as NSW Police.''
Cheers mate. But those departures wouldn't have been in the 2012/13 financial year....as per the Chairman's Report in the Annual Report? Precisely why events taking place in the back half of 2012 hit the group accounts covering the 2013 calendar year isn't obvious to me, but I'm sure there's a reason. One could always get the NRL club accounts from ASIC, but I don't think I could be bothered spending the $30
