Parramatta Eels could be out of pocket more than $500,000 from court case
Date
May 7, 2014 - 10:00PM
Adrian Proszenko
Chief Rugby League Reporter
Former Parramatta Leagues Club boss Bob Bentley has launched an unfair dismissal case which the club concedes could cost them more than half a million dollars if successful.
In further dramas for the strife-torn club, the civil action is scheduled for a directions hearing in the Supreme Court on Friday. Bentley, who was also the chief executive of the NRL club for about a year, was summarily dismissed last July, just a week after then-coach Ricky Stuart told a dozen players their services would not be required.
Bentley was frogmarched out of the role for alleged misconduct, while Leagues Club operations manager Tony Cinque was also punted.
The contingencies section of the latest Parramatta Leagues Club annual report acknowledged the lawsuit could cost about $545,000 if Bentley won the case. One of the Leagues Club's responsibilities is funding the Eels football team.
"A claim was lodged against the company by former CEO of the club, Robert Bentley, in June 2013 for breach of contract in connection with his termination," the report stated.
"The company has disclaimed the liability and is defending the action. No amount therefore was recognised within the financial statements for the year ended 31 December 2013. Based on legal advice, the company considers it has reasonable success regarding this matter. The maximum potential undiscounted amount of the total payments that the club could be required to make to Robert Bentley if there was an adverse decision related to the lawsuit is estimated to be approximately $545,000."
The issue was raised by a member at a fiery Leagues Club AGM when a raft of special resolutions proposed by the board were shot down by attendees. "You're making a presumption there," Eels chairman Steve Sharp said when grilled about the possible payout.
Another club official added: "As I understand it, the club is obliged to put in the worst possible case regardless of the likelihood of success."
The financial performance of the leagues club improved during Bentley's tenure, growing a profit of about $1.3 million to about $5.3 million in his three years at the helm. From the moment he was sacked, Bentley foreshadowed the prospect of legal action over concerns the move was politically motivated.
"My contract has been terminated by the board without any compensation,'' Bentley told Fairfax Media last year. ''Given the circumstances, I'll be considering my legal options going forward. It's a great club and I've been honoured to be the CEO. It's been a privilege to have been able to make a substantial contribution to the financial results of the club; to put it on a platform for success in the future.''
The looming courtroom stoush follows what former Macquarie Bank executive Bill Moss described as a "night of destruction" at the AGM. Moss has offered to continue to help the wooden spooners behind the scenes after a motion to install an eighth 'independent director' was soundly defeated. Moss was Sharp's preference to become the additional board member and would have required the board to ratify the appointment. However, the move fell over at the first obstacle.
