Parramatta Eels: Club accused of back dooring third party payments

THE Parramatta Eels face new claims of third-party arrangements that could breach salary cap rules, including payments made to former players Ben Smith, Jarryd Hayne and Will Hopoate.

Today’s revelations show the Eels changed a contract with a prominent sporting goods supplier in what insiders say was a move to free up money for that supplier to make payments to players on behalf of the club — in breach of salary cap rules.

• PART 1: EELS OVERSAW SALARY BREACH CULTURE

THE Parramatta Eels face new claims of third-party arrangements that could breach salary cap rules, including payments made to former players Ben Smith, Jarryd Hayne and Will Hopoate.

The allegations come after a Daily Telegraph investigation revealed board minutes from the club that showed an established culture of flouting salary cap rules by rewarding third-party sponsors with corporate hospitality.

The NRL said yesterday it would investigate The Telegraph’s new evidence as a fresh part of a continuing salary cap review into the Eels.

Former Eels star Jarryd Hayne playing for the San Francisco 49ers.

“It’s not a document that we were aware of,” an NRL spokesman said.

The March 2014 minutes, signed by club chairman Steve Sharp, stated “the importance of servicing TPA (Third-Party Agreement) providers accordingly with hospitality and player appearances”.

Yesterday there were calls for Sharp to resign.

There is no suggestion of wrongdoing by any player or third-party supplier.

Today’s revelations show the Eels changed a contract with a prominent sporting goods supplier in what insiders say was a move to free up money for that supplier to make payments to players on behalf of the club — in breach of salary cap rules.

The club appears to have facilitated an undocumented $27,500 payment to Ben Smith from the sporting goods supplier, months after he had retired. Sources close to Smith said the money was used to compensate him for the non-payment of the same amount for a legitimate third-party contract.

In the case of amounts paid to Hayne and Hopoate, there are suggestions a key third-party provider — Rouse Hill Village shopping centre owner John Iori, who provided $20,000 third-party arrangements with Hayne and Hopoate in 2014 and 2015 — was able to access free corporate hospitality at Eels games “at call”. There is no suggestion of wrongdoing by Mr Iori.

Will Hopoate.

Ben Smith.

When contacted by The Telegraph yesterday he said: “I was trying to help Parramatta and rugby league. I thought it was legal ... When I want to go down I ring up and they give me tickets.”

Hayne and Hopoate made appearances at Mr Iori’s shopping centre.

It is also understood a real estate agent provided an apartment in Eyles St, Telopea, near Parramatta, first for former player Richie Fa’aoso and now for Semi Radradra.

The Eels had no comment on these arrangements yesterday. The club also had no comment on allegations over the newly revealed third-party arrangements with Smith, Hayne or Hopoate.

Third-party agreements must be at arm’s length basis from the club to ensure they do not become a way for clubs to use sponsors to undermine the salary cap. It is a breach of the cap rules for a club to compensate a third-party provider in any way.

Rouse Hill Village shopping centre owner Jack Iori.

In the Smith case, bank records obtained by The Telegraph show $27,500 (comprising $25,000 plus 10 per cent GST) was paid into the ex-player’s account in March 2015, after he retired at the end of 2014. He was owed third-party payments of $27,500 in 2013 from a financial services group. This arrangement was not organised by the club’s current board or administration.

A source close to Smith said he had “complained to the club when his original third-party contract had not initially been paid”, because the financial services company had hit financial trouble.

“After his complaint, he eventually received the $27,500 payment, not from the finance company, but the sporting goods supplier, in 2015,” the source said.

When contacted by The Telegraph, Smith would only say: “I cannot comment while my matter against the club is before the Supreme Court.”

Eels club chairman Steve Sharp.

Smith and Parramatta legend Ray Price are suing the club because the board rejected them as candidates for election as a director in 2015. The case is listed for hearing next month.

The Telegraph has also ­obtained two separate signed copies of a contract the club made with the sporting goods manufacturer.

The first deal, signed in May 2012, shows the company was to pay $730,000 for a three-year contract for the rights to sell “authentic” jerseys under a licensing program. The second contract, believed to have been signed in the second half of 2013, ­reduced the size of the company’s official payment to the Eels to $580,000 and increased the term to five years.

Eels insiders say the company made direct payments to players, including Smith.

Today’s revelations show the Eels changed a contract with a prominent sporting goods supplier in what insiders say was a move to free up money for that supplier to make payments to players on behalf of the club — in breach of salary cap rules.