Sharp and board on knife-edge as NRL widens Eels cap probe
The Australian
The NRL has dramatically expanded its salary cap investigation into Parramatta, a move that casts doubt over the future of chairman Steve Sharp and heightens the prospect of renewed instability at board level in the lead-up to fresh elections at the club.
The Eels were already the subject of two salary cap investigations relating to third-party payments to backrower Anthony Watmough and former fullback Jarryd Hayne. However, it’s understood the Hayne probe has been expanded to include fresh allegations involving payments made to him amounting to $39,000 after he left the club to pursue his dream of playing in the NFL.
It is thought the NRL is also reviewing rent payments involving former player Richie Fa’aoso and suggestions money from a jersey sponsor was paid to players rather than the club. While it is believed the club declared some rent payments made in regard to Fa’aoso, allegations have emerged that it was well below the actual figure.
The Australian also learned yesterday the club had handed out tickets for corporate boxes to sponsors for no charge, with the sponsors instead paying any financial remuneration to players at the club via third-party arrangements.
The NRL last night confirmed it had widened its salary cap investigation into the club, a move that dramatically heightens the likelihood the Eels will face severe sanctions.
While the loss of premiership points appears unlikely — the club recently agreed to governance changes that saved it from a points penalty — the Eels are facing a massive fine if the allegations are proved true.
It would be the second time in as many years the club has been hit hard with a financial penalty, having been fined $465,000 last season for multiple salary cap breaches.
Things became so dire, the Eels hired former NRL salary cap auditor Ian Schubert to sort out the mess. Schubert’s focus has been helping the club fall into line from this season onwards, and he has not looked at the almost daily allegations that keep emerging.
Sharp has been chairman since 2013, replacing Roy Spagnolo at the helm of the club. After a period of stability, turbulence again appears on the horizon as the Eels prepare for their annual general elections in May.
There were suggestions last night that Sharp would face a vote of no-confidence at the meeting, which would effectively jeopardise his place as the club’s figurehead and leader.
The Australian attempted to contact Sharp yesterday but he did not return calls.
His position has been severely weakened by the latest allegations, including minutes from a board meeting that appear to suggest the club would actively seek ways to circumvent the salary cap through the use of third-party payments. Those minutes were signed by Sharp.
It also emerged that the board was warned in an internal document last year it risked breaching the salary cap if it pushed ahead with a third-party payment for Watmough. The NRL is aware of the document.
Watmough was part of a buying spree the Eels undertook in the hope of turning around their fortunes. Other players who have been added since include Kieran Foran — who nearly reneged on his deal after the club tried to change it — Michael Jennings and Beau Scott.
Parramatta players yesterday distanced themselves from the latest salary cap revelations. Asked whether he was concerned the club was once again in the news for the wrong reasons, five-eighth Corey Norman said: “I didn’t know until (now). I guess that’s good that a lot of us didn’t know about it. That’s for them to handle over there (at the administration).
“If you keep your head out of the news, you don’t see that stuff. Hopefully they can sort that out.”
Hooker Nathan Peats added: “The only board I worry about is my Monopoly board at home to be honest.”
The latest drama couldn’t come at a worse time for the Eels, who lost their season-opening game to Brisbane last week and face premier North Queensland at Pirtek Stadium on Saturday night.
Meanwhile, Balmain officials will meet the NRL and officials from Wests today as they begin mapping out a deal that could see Balmain sell its share in the joint venture. Balmain must pay $5 million at the end of this month or face the prospect of putting its stake on the market.
http://www.theaustralian.com.au/spo...e/news-story/178ef6e0cacc1cf908d1977182f6711e
