NSW Government Sacks Parramatta Eels Board

Stating that "the club's board had ceased to be effective as a governing body", the NSW Government has sacked the Parramatta Leagues Club board and appointed an administrator.

The NSW Government's move followed a series of scandals which have engulfed the club, including officials being accused of using inflated invoices to make under-the-table payments to players and systematic salary cap rorting totalling $3 million going back to 2013.

The Parramatta Leagues Club, which provides entertainment and leisure services to members, owns the Parramatta Eels NRL club.

As a result, the decision to remove the Leagues Club board effectively removes the Eels board as well, as the two boards shared the same seven directors. Directors must sit on the leagues club board to be on the other.

The NSW Independent Liquor and Gaming Authority (ILGA) board met on this afternoon (19th July) and decided that Parramatta Leagues Club directors had ceased to be effective as a governing body.

Administrator Max Donnelly of Ferrier Hodgson has been charged with running the club until a new board is appointed.

The appointment was made by the ILGA pursuant to section 41A of the Registered Clubs Act 1976 (NSW).

In an official statement it was advised that "tThe ILGA Board wishes to make clear that the appointment of a temporary administrator does not relate to any suggestion of insolvency.

“The temporary administrator will remain in place until the ILGA Board otherwise orders."

The Eels were fined $1 million and docked the 12 competition points they had earned in May when news of the salary cap cheating was first made public. The Eels board announced last week that they would fight the penalties, but it now appears doubtful that will happen

Earlier this week the leagues club's chairman, Steve Sharp, wrote to the NSW Government asking it to appoint a temporary administrator.

In a letter addressed to Deputy Premier Troy Grant, Sharp said the club had "deep-seated political issues" and conceded leaking, gossip and speculation had made it "impossible for the governing body to be effective".

The move came in the wake of five Parramatta Eels officials being deregistered and the NRL team being docked competition points for salary cap breaches – for which the board of the Eels has blamed its former chief executive.

NRL Chief Exectuive Todd Greenberg welcomed the appointment of the administrator, stating “our only interest is to help Parramatta become a strong and successful club again.

"This decision paves the way for the Eels to get back on the right path for the fans, coach and football team.

"The NRL will work closely with the administrator to make that happen as quickly as possible."

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