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Parramatta Eels settle two-year legal stoush with former sponsor
Parramatta’s long-running stoush with former sponsor Dyldam is over after the the firm paid the Eels more than half a million dollars to settle the dispute.
The parties have been on a collision course for the best part of two years, resulting in claims and counter-claims being lodged in the Supreme Court.
Dyldam had committed to a $1 million per season sponsorship, but was concerned about reputational damage to its brand as a result of the salary cap saga.
The previous Eels administration agreed to renegotiate the deal and the result was a revised $700,000 arrangement for the 2016 season, the final year of the contract.
Yet despite the discounted rate, it’s understood that Dyldam fell behind in payments, making only a handful of $75,000 installments. When Fairfax Media revealed in August of 2016 that the new payment plan wasn’t met, the property and construction firm stopped paying altogether, leaving the club with a huge shortfall.
The parties have been at loggerheads ever since as lawyers attempted to thrash out the issue. Parramatta continued to uphold its end of the bargain, splashing the Dyldam logo on the front of its jersey and providing appropriate branding at other events. The matter was scheduled to go before the Supreme Court earlier this month, but Dyldam settled the matter on the last business day before the hearing began.
The result is the company had to cough up - once interest and legal costs are factored in - more than $550,000 to the club. The development ends a protracted saga and assists the Eels' bottom line.
“I’m pleased that it has been satisfactorily resolved,” said Parramatta chairman Max Donnelly. “I always thought that we would succeed.”
Having just won one legal battle, the Eels are now embroiled in another. The club is taking legal action against the NRL’s insurer after it refused to make a seven-figure payout to Anthony Watmough.
In what is shaping as another Supreme Court showdown, the blue and golds are taking on QBE with a claim worth $1,096,613 over its decision not to provide the backrower a career-ending insurance payout.
The Eels claim Watmough’s career was effectively ended during a preseason training mishap involving Beau Scott. QBE claims Watmough’s career is over due to a pre-existing knee injury.
Watmough played only 17 NRL games for the Eels after signing a mammoth four-year contract, showing few glimpses of the form he had displayed for Manly, NSW and Australia.
After being forced into premature retirement, the Eels cut a deal with Watmough, which resulted in him being paid out 75 per cent of his agreed contract value for the final two years, working out to $892,500. Parramatta’s claim includes that total, third-party payments, interests and costs, with the sum topping the seven-figure mark.
The Eels are desperate to curb their spending after their expenditure on the football department topped $22 million over the past two seasons.
Like all NRL clubs, they are working towards pruning costs now that a ‘soft’ cap of $5.7 million has been placed on footy expenditure.
https://www.brisbanetimes.com.au/sp...oush-with-former-sponsor-20180317-p4z4uh.html
Parramatta’s long-running stoush with former sponsor Dyldam is over after the the firm paid the Eels more than half a million dollars to settle the dispute.
The parties have been on a collision course for the best part of two years, resulting in claims and counter-claims being lodged in the Supreme Court.
Dyldam had committed to a $1 million per season sponsorship, but was concerned about reputational damage to its brand as a result of the salary cap saga.
The previous Eels administration agreed to renegotiate the deal and the result was a revised $700,000 arrangement for the 2016 season, the final year of the contract.
Yet despite the discounted rate, it’s understood that Dyldam fell behind in payments, making only a handful of $75,000 installments. When Fairfax Media revealed in August of 2016 that the new payment plan wasn’t met, the property and construction firm stopped paying altogether, leaving the club with a huge shortfall.
The parties have been at loggerheads ever since as lawyers attempted to thrash out the issue. Parramatta continued to uphold its end of the bargain, splashing the Dyldam logo on the front of its jersey and providing appropriate branding at other events. The matter was scheduled to go before the Supreme Court earlier this month, but Dyldam settled the matter on the last business day before the hearing began.
The result is the company had to cough up - once interest and legal costs are factored in - more than $550,000 to the club. The development ends a protracted saga and assists the Eels' bottom line.
“I’m pleased that it has been satisfactorily resolved,” said Parramatta chairman Max Donnelly. “I always thought that we would succeed.”
Having just won one legal battle, the Eels are now embroiled in another. The club is taking legal action against the NRL’s insurer after it refused to make a seven-figure payout to Anthony Watmough.
In what is shaping as another Supreme Court showdown, the blue and golds are taking on QBE with a claim worth $1,096,613 over its decision not to provide the backrower a career-ending insurance payout.
The Eels claim Watmough’s career was effectively ended during a preseason training mishap involving Beau Scott. QBE claims Watmough’s career is over due to a pre-existing knee injury.
Watmough played only 17 NRL games for the Eels after signing a mammoth four-year contract, showing few glimpses of the form he had displayed for Manly, NSW and Australia.
After being forced into premature retirement, the Eels cut a deal with Watmough, which resulted in him being paid out 75 per cent of his agreed contract value for the final two years, working out to $892,500. Parramatta’s claim includes that total, third-party payments, interests and costs, with the sum topping the seven-figure mark.
The Eels are desperate to curb their spending after their expenditure on the football department topped $22 million over the past two seasons.
Like all NRL clubs, they are working towards pruning costs now that a ‘soft’ cap of $5.7 million has been placed on footy expenditure.
https://www.brisbanetimes.com.au/sp...oush-with-former-sponsor-20180317-p4z4uh.html
