EXCLUSIVE Nick Tabakoff Editor-at-Large The Daily Telegraph
THE Parramatta Eels board and senior executives have overseen a culture of breaching salary cap rules by rewarding players’ third-party sponsors with corporate boxes, explosive internal documents suggest.
Confidential board minutes from 2014 obtained by The Daily Telegraph show there was active discussion at the highest levels of the club about providing rewards — most notably free and fully catered corporate hospitality — to the third parties.
There are also revelations that tens of thousands of dollars in payments were made to departed star Jarryd Hayne by a Parramatta official last year, well after he left the club to join the San Francisco 49ers NFL team.
The Telegraph has obtained documents detailing five separate bank transfers to Hayne from an unnamed Parramatta football club representative totalling $39,000, well after Hayne left the club.
Bank statements detail five payments were made between January 27 and February 26, 2015 by a Parramatta official into Hayne’s account, including three individual payments of $10,000.
The Daily Telegraph is not suggesting that Hayne has done anything wrong. An Eels spokesman had no comment.
Hayne’s manager Wayne Beavis denied all knowledge of the payments.
“I don’t know anything about it. It might have been money owing to him. I don’t get involved with his personal stuff,” he said.
The 2014 boardroom documents, which were signed by club chairman Steve Sharp, state “the importance of servicing TPA (Third Party Agreement) providers accordingly with hospitality and player appearances”.
Any legitimate third-party payments to players must be on an arm’s length basis from the club. It is a breach of the salary cap rules if a club makes a payment on behalf of the third parties or does a deal to compensate companies for a third-party contract.
It is understood that corporate hospitality at the Eels’ home ground, Pirtek Stadium, is valued at up to $300 a head — meaning any third party given the benefit of this over the course of a season could reap a benefit worth thousands of dollars.
When The Telegraph put the allegations to Mr Sharp yesterday he said the minutes could have been “doctored”, before later appearing to back down on the claim.
Eels communications chief Josh Drayton later emailed a further comment: “The club denies these allegations show impropriety or wrongdoing in relation to the salary cap.”
The NRL’s official rules regarding salary cap on its website state: “Many players have third-party agreements that are outside the salary cap” but these must not “become a way for clubs or players to use sponsors or third parties to undermine the salary cap”.
The Eels have already paid a $465,000 fine for salary cap breaches in 2014 and ran the risk of having four points deducted for the 2016 season unless governance was fixed.
A deal with the NRL on this matter is still being finalised.
When The Telegraph made the NRL aware of these new developments yesterday, a spokesman would say only that the governing body was continuing a review of the Eels’ salary cap
“We cannot make any comment on the review until it is completed,” he said.
The formal minutes of a March 26, 2014, meeting of the Eels’ governing board suggest a culture in which the allocation of free “hospitality” and “corporate tickets” was being used as a virtual currency to compensate third-party providers.
In discussing football operations, they said: “Issues in relation to the salary cap and potential repercussions were discussed. The board noted the process of Third Party Agreements and the importance of servicing TPA providers with hospitality and player appearances.”
Minutes from the same meeting also noted “the importance of using corporate tickets for potential sponsors and TPA providers”.
Several of those present at the meeting — including Mr Sharp, deputy chairman Tom Issa, John Boulous (now the club’s CEO) and the head of football Daniel Anderson — remain with the club.
These minutes, also signed by Mr Sharp, were adopted on April 23, 2014, verifying the statements made at the March 26 meeting.
When contacted yesterday, Mr Sharp said: “I find it extraordinary that’s in the board minutes. Of course I know that third-party deals are arm’s length.”
At one point he even suggested the minutes could have been “doctored”.
“You’ve made me aware of these minutes,” he said.
“I’ll have to call our CEO. We’ve had cases around that time (2014) when documentation wasn’t correct.”
Asked if he was saying his signature had been forged, Mr Sharp then backed away.
“I wouldn’t suggest someone has forged my signature at all (but) for what agenda is someone giving you those documents?” he said.
http://www.dailytelegraph.com.au/sport/nrl/teams/eels/parramatta-eels-club-board-and-executives-oversaw-culture-of-salary-cap-rule-breaches/news-story/2fdf79d69b5f38c0eb440e9245daf6a0
Replies
Hayne’s manager Wayne Beavis denied all knowledge of the payments.
“I don’t know anything about it. It might have been money owing to him. I don’t get involved with his personal stuff,” he said.
LOL Jimmy, gold, bro who would you guess leaked this mate and could you have a guess at to who else had those minutes at the time?
Whats your take mate?
Every club looks after their 3rd party sponsors, dont doubt that, im just wandering exactly how the 2014 board minutes got to Buzz, obviously from somebody within our club at the time who has an axe to grind with Sharp, and they could very well still be there, handing out info like this.
The only way either one of them could have this info is if one of Sharps board gave it to them, ive no doubt new factions are forming of which Fitzy will be pulling the strings of one, probably roy doing the same on another, this could be the start is a silent coup?
Anything is possible, its just a matter of time before spilts happen, happens on every board.
OR unless this came out in the price waterhouse review and somebody else has handed it on?
The Telegraph appear to be in possession of three separate sets of documents.
How on earth did they get copies of bank statements? It's bizarre that the bank statements appear to be in the name of an individual Parramatta football club representative NOT the club.
Correct me if I'm wrong but the board in 2014 comprised the following;
Board of Directors
Stephen Sharp (Chairman)
Tom Issa (Deputy Chairman)
Lawrence Shepherd
Peter Serrao
Robert Sassen
Mario Libertini
OK well i can take a pretty good guess as to whats going on here, im aware that a few of those guys listed do not see eye to eye with steve any more, ive no doubt its come from a former board member/s.
My message to them, pull your fucking head in, if you give a fuck about the club youll stop trying to drag us through the mud for your own agendas and egos.
Who the fuck would you try and expose our club with shit like this? all because you want the chairman out whom you dont like?
You are a big part of the problem with this club!!
WTF is wrong with you?
Perhaps Board minds were twisted to outlawed steps , but did they act on them ? When I was on the Board all copies of minutes were to be destroyed and there are plenty of guesses where these details originated .
Was there any mention at future meetings ie business arising .
Whatever the case may be , I think members are entitled to an explanation .
The clue is that the minutes are signed. The rest of the board would have not have been given a signed copy of the minutes so I don't think you can point the finger at even ex board members.
Unless the Board member had access to the minutes or somebody conducting an investigation had them presented to him or her .
Not sure who leaked it but Fongy might be right. I assume the minutes in 2014 would have been shared with the Parramatta District Rugby League Club (PDRL) board (now defunct) that comprised the following members - correct me if I'm wrong;
Roy Spagnolo OAM (Chairman)
Sid Kelly OAM (Deputy Chairman)
Eric Grothe Snr
Mario Libertini
Ray Price OAM
Stephen Sharp
Eric Grothe Jnr
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