Leagues Club members asked to bail out Eels to tune of $10m

THE scandal-plagued Parramatta Eels will cop a record $10 million-plus loss for the 2016 year, following the exposure of its systematic salary cap cheating program.The huge loss will force the NRL club’s cashed-up parent, the Parramatta Leagues Club, to cover the massive sum just to bail the Eels out.The Daily Telegraph understands before the salary cap scandal broke, internal projections at the Eels were that Parramatta would require an $8m handout from the Leagues Club for 2016.But the club is now projecting this figure will blow out by $2 million-plus to between $10-$10.5m because of:● The NRL’s imminent $1m fine on the club;● Its loss of two major sponsors, Infinity and Cleanaway, following the cheating revelations ($550,000 a year);● Spiralling and ongoing legal fees for both the Eels’ “Gang of Five” and some of its troubled players ($500,000 and counting), and;● Loss of its prizemoney from winning this year’s Auckland Nines ($370,000);These factors alone mean the club’s losses will now easily top $10m for the 2016 season, and possibly more.This will put yet more pressure on the beleaguered Eels, days out from the likely final bans of the Gang of Five — suspended Eels chairman Steve Sharp, CEO John Boulous, deputy chairman Tom Issa, director Peter Serrao and football boss Daniel Anderson — over the cap cheating.The massive loss takes subsidies given by the Leagues Club to the Eels to more than $18 million for the 2015 and 2016 financial years: making the club by far the most financially dependent in the NRL.The subsidies provided by the Leagues Club — the member-based, pokie palace in Parramatta’s heart — mean members’ money is bailing out the operations of the football club.The Eels have for some time been relying on the rich Leagues Club, which in 2015 had record revenue of $82m, total members funds of $54m, and profits of $6.6m.Ex-Eels sponsors Infinity ($400,000 a year) and Cleanaway ($150,000 a year) both invoked clauses allowing them to depart because their brands were brought into “disrepute” by the scandal.THE scandal-plagued Parramatta Eels will cop a record $10 million-plus loss for the 2016 year, following the exposure of its systematic salary cap cheating program.The huge loss will force the NRL club’s cashed-up parent, the Parramatta Leagues Club, to cover the massive sum just to bail the Eels out.The Parramatta Leagues Club members will have to bail out the embattled NRL club and pay the $10 million plus loss. Picture: Adam YipThe Daily Telegraph understands before the salary cap scandal broke, internal projections at the Eels were that Parramatta would require an $8m handout from the Leagues Club for 2016.But the club is now projecting this figure will blow out by $2 million-plus to between $10-$10.5m because of:● The NRL’s imminent $1m fine on the club;● Its loss of two major sponsors, Infinity and Cleanaway, following the cheating revelations ($550,000 a year);● Spiralling and ongoing legal fees for both the Eels’ “Gang of Five” and some of its troubled players ($500,000 and counting), and;● Loss of its prizemoney from winning this year’s Auckland Nines ($370,000);These factors alone mean the club’s losses will now easily top $10m for the 2016 season, and possibly more.Eels chairman Steve Sharp and deputy chairman Tom Issa are among the suspended Gang of Five.Parramatta Eels Chief Executive Officer John Boulous. Picture: Jenny EvansThis will put yet more pressure on the beleaguered Eels, days out from the likely final bans of the Gang of Five — suspended Eels chairman Steve Sharp, CEO John Boulous, deputy chairman Tom Issa, director Peter Serrao and football boss Daniel Anderson — over the cap cheating.The massive loss takes subsidies given by the Leagues Club to the Eels to more than $18 million for the 2015 and 2016 financial years: making the club by far the most financially dependent in the NRL.The subsidies provided by the Leagues Club — the member-based, pokie palace in Parramatta’s heart — mean members’ money is bailing out the operations of the football club.The Eels have for some time been relying on the rich Leagues Club, which in 2015 had record revenue of $82m, total members funds of $54m, and profits of $6.6m.Ex-Eels sponsors Infinity ($400,000 a year) and Cleanaway ($150,000 a year) both invoked clauses allowing them to depart because their brands were brought into “disrepute” by the scandal.Eels football boss Daniel Anderson is also suspended over the salary cap scandal.Eels director Peter Serrao is also suspended over the salary cap breach.Infinity has been replaced by Eels apparel partner Blades as back-of-jersey sponsor for the Eels — for a fraction of the original Infinity deal.The contract of the club’s major sponsor, Dyldam, is also up for renewal at the end of 2016.Meanwhile, a second proposal to overthrow the Eels board was registered with the club yesterday, with a third expected to be lodged shortly.Eels member Chris Losco, who is leading one of the proposals to be put to an extraordinary meeting in late August, said yesterday: “The financial mismanagement of the Eels shows this board is incapable of turning around the performance of what should be a powerhouse of Australian sport.”Eels interim boss Ian Schubert could not be reached for comment.http://www.dailytelegraph.com.au/news/nsw/leagues-club-members-asked-to-bail-out-eels-to-tune-of-10m/news-story/b5ad566523256b9e08bcd2d5c8142973

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Replies

Rosemont July 7, 2016 at 2:01am

Ah the laughing stock of the NRL. Well done board of fools.
The Eeel July 7, 2016 at 2:19am

what are parents for lol
- Jimmy > The Eeel July 7, 2016 at 7:13am
  
  Lol
FAT GUY July 7, 2016 at 5:26am

This will blow out to be triple that.Take in next years and future years Memberships will halve and also future sponsors and gate takings and most of all merchandise .........
Ed July 7, 2016 at 7:08am

Let's get ball rolling fuck off the current board and install competent individuals who can make right decisions.
Jimmy July 7, 2016 at 7:15am

The new broom can't start soon enough.
Muttman July 7, 2016 at 8:10am

Leagues Club and Football is one indivisible entity.
parra supporter July 7, 2016 at 8:46am

I think they got the original 8 mil loss from last year, I doubt we'd have spent more than that this year if we don't include that 2-2.5 mil from losses resulting from the salary cap
Muttman July 7, 2016 at 9:03am

Yeh I got that mate. Sorry. I was being glib.
I was pointing out that currently the Leagues Club and Football operations are all under a single Board that oversees both. Whilst we have this scenario you'll always have inefficiency like this.
Be wary of the push for privatisation of the Football operations. This is a real threat and completely unnecessary. We simply need to restructure the club and constitution to achieve the desired outcome.
Xman July 7, 2016 at 9:12am

How is the loss of the prize money a loss, you dont budget for it, jeez these guys just don't let up do they. I don't know why any of this continues to be published in the sports sections of the media, why don't they write up a story of what the team and coaching staff have achieved regardless of all the crap, oh wait that would be football related....