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On Sunday, Parramatta chairman Steve Sharp promised legal action if he was not satisfied with the NRL’s handling of the club’s salary cap issues. This evening, mere hours after the NRL handed the Eels their penalty, Sharp and his four fellow stood-down officials struck their first blow in the courts.
With the NRL having announced it would deregister Sharp, deputy chairman Tom Issa, director Peter Serrao, CEO John Boulous and football manager Daniel Anderson, Supreme Court Justice Rowan Darke has this evening reinstated the five men.
According to Fairfax Media, Justice Darke “enacted interim orders temporarily preventing the NRL from restricting the functions of the directors and club officials of the Parramatta National Rugby League Club Ltd.”
Parra salary cap scandal
» Press conference: Parra breached the cap by $3 million, players may be investigated
» Parramatta docked 12 points, fined $1 million for salary cap breaches
» Don’t make the innocent pay for Parramatta rorting the salary cap
» Will the Eels take the NRL to court?
» How Parramatta’s punishment compares to previous salary cap breaches
» Read the full statement from the NRL
The five men’s barrister, Arthur Moses, SC, argued that the NRL, as a separate entity to Parramatta Rugby League Club Ltd, cannot “fetter” the Parramatta club’s directors, as to do so is in breach of the Corporations Act.
“One corporation cannot impose upon the directors of another corporation,” he said. “To state that is to state the obvious with all due respect.”
Speaking at this morning’s press conference to announce the sanctions against the club – who stand accused of total salary cap breaches to the tune of some $3 million – NRL CEO Todd Greenberg stressed that the penalties were “provisional in nature” and that “both the club and officials will be afforded an opportunity to respond”.
However, Mr Moses said that the five men were only told of the intention to deregister them at a meeting of the entire board held at 7:30am today.
“[There was] no prior notice given that they would be suspended today before today,” he said.
Furthermore, Mr Moses said the officials had been told they would be given just five days to prepare both their own and the club’s response to the proposed sanctions.
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