http://www.smh.com.au/rugby-league/...halved-for-2017-campaign-20160902-gr7jl2.html
Parramatta Eels' football budget halved for 2017 campaign
Parramatta's football budget will be halved for next season as its powerful leagues club seeks to slash at least $5 million from the cost of running the Eels.
The incoming Eels chief executive, expected to come down to a decision between former Roosters boss Bernie Gurr and former Storm chief Mark Evans, will be required to run a much leaner operation than the previous administration.
The development comes as the Eels attempt to settle their $1.83 million contract dispute with Will Hopoate out of court and extricate themselves from a deal to play matches at ANZ Stadium after their new home ground is built.
The cost of running the Eels has blown out in recent seasons after mismanagement by the previous regime. The annual bill has ballooned to about $11 million following a series of setbacks that include a $750,000 fine for salary cap breaches, a $1.2 million payout to Anthony Watmough after an insurer refused to cover his career-ending knee injury and about $1 million in legal expenses.
Interim Eels chairman Max Donnelly said Parramatta Leagues Club would be looking to halve its contribution to the Eels in 2017.
"Obviously, the leagues club will be funding the football club, but it shouldn't be funding it to the tune of $10 or $11 million. That's crazy," Donnelly told Fairfax Media. "That's what it will be this year. Last year it was $9 million."
Asked how much the leagues club was likely to contribute to the football club next season, Donnelly said: "$5 million. I should be able to halve it, and then head towards self funding.
"I think we can with the right CEO, which I think I will get. I'm confident we will get a very good CEO."
The dramatic reduction means coach Brad Arthur will need to get more bang for his buck from next season if the Eels are to be competitive.
Donnelly has already begun cutting costs by making several football staffers redundant. The man who handled the bankruptcy cases of fugitives such as Christopher Skase and Robert Trimbole, has already called off Parramatta's appeal against the NRL's salary cap sanctions and is now attempting to head off another court case.
Hopoate is seeking $1.83 million in damages, alleging Parramatta failed to honour a contract extension for seasons 2016-18, and has taken the matter to the Supreme Court. The Eels have made a settlement offer in a bid to resolve the impasse.
"I've looked at it with a set of fresh eyes and I can see some merit in trying to settle it so we can see where we are with our cap and Hopoate can get some certainty about it," Donnelly said.
"It has been discussed and offers have been made, but it hasn't been resolved.
"I'm perhaps more pragmatic than the old board and am prepared to settle things. I'm not a fan of paying lawyers great sums of money, but I will if I have to."
The NRL will make a ruling on whether Parramatta should carry the payout in its salary cap once an outcome has been reached.
Another issue Donnelly is seeking to address is the contract the previous Parramatta administration negotiated with ANZ Stadium. That deal would see the Eels play 10 games at the former Olympic venue during the next two years while the club's home ground is redeveloped, followed by a further two games a season for the next eight years.
However, Donnelly said there should be no need to shift games to the Homebush Bay precinct once the Eels' new home ground has been constructed.
"I cannot get why you would take two games to ANZ once Pirtek has been rebuilt," Donnelly said. "I'm not terribly happy with [the ANZ Stadium contract] and it needs a review."
The Eels finish their 2016 campaign against the Warriors at Mt Smart Stadium on Sunday.
