MAX Donnelly has performed some of the toughest tasks an insolvency expert could confront, having headed up the nightmarish international chases for the assets of some of Australia’s highest-profile bankrupts, including Christopher Skase and Robert Trimbole.
But the Ferrier Hodgson partner is just three days into an arguably tougher assignment: saving the Parramatta Eels club from the most scandal-ridden period in its 70-year history.
As he confided to 2GB’s Ray Hadley on Thursday: “This could be the hardest job I’ve ever had.”
In an extraordinary week in the history of Parramatta — and indeed, of the club industry as a whole in NSW — the entire board of the Parramatta Leagues Club was sacked and, at least for now, replaced by Donnelly.
Max Donnelly speaks during a press conference after being appointed as the new temporary administrator for the Parramatta Eels League Club at Parramatta, Sydney. Picture Brett CostelloBut despite the daunting nature of his assignment, Donnelly has already been in a flurry of action to reinforce who’s boss at the scandal-ridden club.
In the past 48 hours, a new broom has swept through the club at breakneck speed. As one insider put it yesterday: “These liquidators know how to come in and cut the bulls***.”
In an interview with the Saturday Telegraph, Donnelly confirms much has already been achieved: “The directors have all resigned of their own accord, and I’ve appointed myself as chairman.”
Supporting Donnelly will now be a temporary new board of two other Ferrier Hodgson insolvency partners.
And if the Eels’ two senior banned executives, CEO John Boulous and head of football Daniel Anderson, thought they would indefinitely keep their $250,000-a-year package plus a company car — which they have received since they were effectively banned in May — they were wrong.
The cash tap to the two executives was switched off on Thursday night, and their company cars taken back by the Eels.
“I work on the principle of a fair day’s work for a fair day’s pay,” Donnelly says.
He has made it clear that his appointment is not about money. For one, the Eels’ rich parent, the Parramatta Leagues Club, is a well-known cash cow, so there is no suggestion that it will go broke.
But with the Eels losing far more than any other club in the NRL — losses for the 2016 year will top $10 million — there is a clear issue of whether money has been used properly. These losses have so far been subsidised by the Eels dipping into the bottomless resources of the rich Leagues Club.
But Donnelly also makes it clear that the big problem at Parramatta is the common board of directors for the Leagues Club and the Eels — and whether the former’s funds were used properly.
The Eels players are trying to pull off a miracle after the club lost 12 points. Picture: Getty Images“They all seem to think it’s one pot of money, and they’re just grabbing money out of the Leagues Club.”
So with the directors gone, Donnelly will effectively run both boards himself in the coming months. Meanwhile, Leagues Club CEO Bevan Paul will now take on the added responsibilities of the Eels CEO role, initially on “a one-month term”.
Donnelly’s most urgent priorities are now finding permanent replacements for Boulous and Anderson in the CEO and football boss roles.
He says he will “outsource” to a headhunter the recruitment process for a new CEO, with the process expected to take about two months.
But filling Anderson’s former football boss role to support hero coach Brad Arthur should be less complicated, and will almost certainly not require a headhunter.
Donnelly anticipates this could simply involve canvassing names of the well-qualified people and then recruiting urgently, given the ranks of Arthur’s current coaching support are currently thin.
Then comes the most important process — putting together new Eels boards.
But with two Parramatta boards wiped out in 72 hours this week, what is his vision of how they will look once he and his two Ferrier Hodgson partners, Steve Sherman and Jim Sarantinos, have left the club?
His initial view is that the current structure in which the two boards have “mirror” directors must change, given that this structure allowed so much Leagues Club money to be used by the Eels.
“These are broad ideas in my head, but you would think there needs to be less than a majority of common directors on the two boards,” he says.
The most important priority is finding the right quality of candidates.
Bevan Paul is stepping into the Eels CEO role.Gone are the days when the best candidate for Eels chairman was the one who bought a round of drinks on any given Saturday at the Leagues Club, with people with suitable business, legal and sporting administration skills in sharp focus.
Now he is in control of the boards, Donnelly has the power to change the Eels’ constitution to bring suitably qualified candidates.
“I intend to have some sort of dialogue with NRL, Clubs NSW, members, and all the bodies that might have helpful input,” he says.
“Once I’ve got that process underway, I’ll review the proper structure for the board of the football club — and come up with what I think might work.”
But this weekend, Donnelly has more pressing priorities: “I’ve got about 300 emails from passionate Eels fans in my inbox.”
“I’ve just had no time this week, and it would be rude not to respond.”
Replies
Unfortunately we were incompetent at cheating
Well put Pou. The more money available to the FC the more the inclination to spend & sometimes not astutely. It may sound rather trite but sound business disciplines including a Budgeted Team Structure for the FC to work with will possibly be the basis adopted by the Don plus a disciplined process for recruiting.
There is an inherent conflict. Should the FG coach have absolute control over all recruiting decisions made as he is ultimately held responsible for the results on the paddock or should there be a seperate process for recruiting, eg committee selection panel & salary guidelines etc, to control the process.
I suppose that IF the FG coach is fiscally responsible as well as being footy competent then he should have total control but that is a very big IF. Conversely a FG coach who is absolutely results focused without having proper regard for monetary constraints could leave the Club in a hell of a mess at the end of his tenure. Not an easy matter to accomodate but I guess that is what the Don has been brought in to address.
All sounds surprisingly familiar..... Philip Sim.... master puppeteer!!! I'm sure Jamesy can create an appropriate picture lol.