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http://www.smh.com.au/rugby-league/league-news/sponsor-tears-up-parramatta-eels-contract-over-nrl-salary-cap-debacle-20160512-gotxaq.htmlA sponsor has torn up its contract with Parramatta over the salary cap saga as the dramas begin to have an impact on the club's bottom line.

Just when the Eels finally became salary cap compliant, Cleanaway severed ties amid concerns their association was tarnishing their brand. The end of the relationship with Cleanaway, a firm that owns and manages a number of waste-processing operations, will cost Parramatta a six-figure amount. It's understood another club sponsor is reviewing its position and is giving serious consideration to also ripping up its deal. Should that eventuate, the combined loss of income would total well over half a million dollars.

In happier times: L-R: Davin Magee (Cleanaway - GM Sales and Marketing), David Clancy (Cleanaway - GM NSW), Scott Seward (Eels - CEO), Jack Perko (Cleanaway - Managing Director) in 2015. Photo: www.parraeels.com.au

Cleanaway and Parramatta renewed their partnership on a new three-year deal last season, an upgrade that resulted in the firm featuring on the uniforms of the club's on-field trainers. But after months of negative headlines, the NRL's provisional penalties against the Eels for cap rorting was the last straw. Cleanaway activated a get-out clause in their contract relating to reputational damage.

"We certainly have made the decision to withdraw from the sponsorship with the Eels," said Cleanaway's head of marketing and communications, Alison Chalmer. "We did that last week. We wish the club the best moving forward but it wasn't a relationship we wanted to continue at this time, so we made that decision. Obviously the club is facing a number of different challenges at the moment. From our perspective it's not a sponsorship we wanted to continue with."

Cleanaway has a strong presence in the Northern Territory and Parramatta's commitment to taking games to the Top End was part of the appeal. However, that wasn't enough to save the relationship. "We wish the club well as they work through the governance issues and the challenges they face ahead," Chalmer said. "Our goal is to focus on our business and let them run theirs."

While the Eels have the backing of the Parramatta Leagues Club, they can ill afford more hits to the hip pocket. The ongoing mismanagement could result in a number of payouts including the NRL's $1million fine; a $1.8million damages claim from former player Will Hopoate; a $465,000 fine from the governing body for previous salary cap breaches; and the handing back of $370,000 earned by winning the Auckland Nines.

The club is believed to be footing the legal costs of the 'gang of five' as they take Supreme Court action and prepare to answer their breach notices.

 However, should there be an adverse finding, those individuals could be liable for the costs if the club moves to recoup them. The club is finally salary cap compliant after Nathan Peats took up a deal with the Gold Coast and Anthony Watmough was medically retired due to a career-ending injury.

"The fans have had just as many excuses as the playing group to walk away from this team and this club, and they haven't," said coach Brad Arthur. We probably need them more than ever right now."

Eels director Geoff Gerard added: "I want to thank Ian Schubert for his tireless work over the past fortnight to get the Parramatta Eels to this point, as well as Brad Arthur and Peter Sharp for their cooperation. "Ultimately, we all want to see this football team playing for points, and the members and fans deserve to see their club compete for the rest of the NRL season. Our first priority has been making sure that is possible from Friday night onwards."