A leading academic in sports law has warned the only thing Parramatta will walk away with is a hefty bill if it carries out a threat to take the NRL to the NSW Supreme Court to avoid being docked four competition points before the start of the season.
The Eels have until February 29 to adopt several initiatives that were outlined by the NRL stemming from a review into their corporate governance that was prompted after the club was found guilty of breaching the salary cap last season.
The club was fined $465,000 and warned to get its house in order or risk starting the 2016 season on minus four points.
The bone of contention between the warring parties is Parramattas refusal to adopt a recommendation from global accountancy firm PricewaterhouseCoopers that they restructure the way they elect their board to promote more stability.
As it stands, the Eels hold board elections every two years which has led to instability around the club, whereas PwC has recommended that elections be held every year but only a third of the directors need to stand.
Eels chairman Steve Sharp has threatened to take the case to the NSW Supreme Court over the situation but David Thorpe, a lecturer in sports law at Sydneys University of Technology, said yesterday that would be an uphill battle for the club.
The NRL has the contractual authority under the licensing agreement with the various clubs to penalise breaches of the NRL Rules, including infringements of the salary cap and the requirement of sound internal governance of the football club, Thorpe said. Under these rules, clubs may be docked points for failure to comply.
The clubs, including Parramatta, agree when they take up the offer of a licence to grant to the NRL disciplinary authority, and provided it is exercised fairly and with sufficient notice to comply with any reasonable conditions imposed by the NRL, legal action before the NSW Supreme Court is likely to come to nothing, other than unnecessary expense.
Parramatta chief executive John Boulos insisted the club was working with the NRL and would do everything in its power to ensure it didnt suffer a four-point penalty.
The Eels have recruited strongly in the off season, with Kieran Foran, Michael Jennings, Beau Scott and Michael Gordon coming on board, and it could derail their season if they are forced to start behind the rest of the pack on minus four points.
Were both working in pretty good faith and I have no doubt we will do everything in our power to put the processes and policies in place that meet the requirements of the governance review, Boulos said.
Asked whether he was confident the club wouldnt be penalised premiership points, he said: I hope it doesnt. Were working very hard. We have been working hard since June. As a club it is very important to us.
We acknowledge that we need to ensure the requirements of the governance review are met. Were looking to be the best club we can in everything we do, both on and off the field.
If the players are nervous about the situation, they certainly werent showing it at a promotion yesterday to launch the clubs first ever indigenous jersey.
Hooker Nathan Peats said the prospect of starting the season on minus four competition points hadnt been an issue among the playing group.
To be honest its a weird thing because you would think we would be but we havent even spoken about it, Peats said.
We havent had a meeting about it. Ill let the club deal with it and worry about getting ready for round one.
At the moment it is a race to get into the 17.
Even for me, I havent even thought about it once. You might have a conversation about it but it doesnt change your whole day.
Its play on. Its not ideal no team would like that. But like I said it is out of our control so there is no point dwelling on it.
No matter whether it happens or not, we still have to perform, try to win a game and try to get into the squad.
