Parramatta Eels: Club board aware of need to ‘secure’ third-party agreements for 2014 season, boardroom documents reveal
EXPLOSIVE new documents reveal the Parramatta Eels board was aware of a need to “secure” more than $500,000 in third-party agreements to players for the 2014 season. The boardroom minutes also reveal two cars were “outstanding and need to be secured”.
- THE EELS’ CULTURE OF SALARY CAP BREACHES
- PARRAMATTA AND THEIR THIRD-PARTY GAMES
- EELS LAUNCH PROBE INTO SALARY CAP BREACHES
- PARRAMATTA CLUB CHIEF SHARP UNDER PRESSURE
EXPLOSIVE new documents reveal the Parramatta Eels board was aware of a need to “secure” more than half-a-million dollars in third-party agreements to players for the 2014 season.
The confidential boardroom minutes from January 2014, obtained by The Daily Telegraph, show Parramatta leaders pointed to a pressing need to source promised third-party payments of $589,000.
The minutes read: “The board noted that for 2014 there is in the order of $589k in TPA’s (sic) plus 2 cars that are outstanding and need to be secured. (Eels director Peter) Serrao questioned the option of securing commercial revenues and J. Boulous confirmed currently the corporate team are focused on sourcing sponsorship. The board discussed the fact that there needs to be a clear determination as to whether a sponsor wants to be a corporate partner or TPA provider.”
The January 2014 minutes are signed off by Eels chairman Steve Sharp.
The NRL requires that third-party agreements must be made at an arm’s length basis from the club to ensure they do not become a way for clubs to use sponsors to thwart the salary cap. It is a breach of the cap rules for a club to be involved in the compensation of a third-party provider in any way.
A Parramatta Eels spokesman last night could not answer whether details of the nearly $600,000 in “outstanding” third-party agreements had been disclosed to the NRL.
When the allegations were put to the NRL last night, a spokesman said: “We’ll investigate any relevant material that comes forward during the inquiry period.”
The latest revelations raise further questions about the positions of Mr Sharp, deputy chairman Tom Issa and chief executive John Boulous.
The documents show the Eels leadership at the time, including Mr Sharp, Mr Issa, Mr Boulous, head of football Daniel Anderson and Peter Serrao, all of whom were present at the meeting, were aware how much players were promised as part of their as-yet unsecured third-party arrangements with the club. The minutes also suggest that leaders at the club were involved in organising TPAs for players.
There is no suggestion of wrongdoing by any players.
On Sunday Mr Boulous launched a defence of the actions of the Parramatta leadership group, stating: “In my time as CEO and under the direction of the board, the club has acted in good faith with the NRL, and we have overhauled and dramatically improved club governance.”
Internal documents published by The Daily Telegraph last week revealed Mr Boulous was allocated up to 50 corporate box tickets for each Eels home game, worth $180,000 a year, at a time where it has become clear the club has been using corporate hospitality to reward third parties.
Meanwhile, it is understood Mr Sharp is standing firm against suggestions senior board members should resign. He said privately on the weekend it would look “weak” if they did so.
Today’s revelations follow The Daily Telegraph’s investigation into the Eels, which found:
● DOCUMENTS showing active discussion by the club’s board of using corporate boxes to reward third-party sponsors of its players, in clear breach of salary cap rules;
● $39,000 was made in five payments to Eels star Jarryd Hayne after he had left the club;
● A $27,500 payment was made to former Eel Ben Smith, months after he retired, by a sporting goods manufacturer he had no contract with; and
● SEPARATE third-party contracts involving Hayne and fellow former Eel Will Hopoate.
The revelations raise serious questions over comments made by Mr Boulous on Sunday that he would start an “internal investigation”, given he is mentioned as being present at the January 2014 board meeting.
The minutes of the same meeting also noted the Eels were having salary cap problems.
They state: “The board noted that the club is still over the salary (cap) and D. Anderson will be speaking with football accountant Linda Mittiga and recruitment manager Peter Nolan regarding the numbers that the NRL have questioned. D. Anderson advised that we will need to lose under-20s players to rectify the salary cap situation and provided an update as to the players we are trying to sell.”
The Eels spokesman last night said the club “looks forward to discussing this matter with the NRL”.
“These minutes indicate that head of football advised that it was important that any TPAs should be registered with the NRL as per guidelines with the board also noting that there is a clear difference between corporate partners and TPA providers,” he said.
“The board also discussed opportunities for legitimate options to identify TPAs and MPAs as per NRL guidelines.’’
Mr Sharp last night released a message to Eels fans saying “no stone will be unturned” in examining the claims.
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