The New South Wales Independent Liquor and Gaming Authority (ILGA) will replace the current Parramatta Leagues Club board with a temporary administrator.
The ILGA found there was enough evidence proving the club’s board had ‘ceased to be effective as a governing body.’
It came a week after the Eels moved to appeal parts of the salary cap breach penalties handed down by the NRL.
Max Donnelly of Ferrier Hodgson will take over as a temporary administrator as Deputy Premier Troy Grant announced.
“This decision is not one that would have been taken lightly, however it now means Mr Donnelly can immediately begin the process of cleaning up and restoring the Parramatta Eels to a functional and effective club for its members and fans,” Mr Grant said.
“It is in the best interest of the club, the league and the fans of Parramatta Eels to draw a line under this saga and restore confidence in the club’s administration.
“The authority’s decision enables a new start for Parramatta Leagues and I congratulate its fans who have continued to support the club through this period.”
The government assured fans the decision had nothing to do with the financial situation of the club.
NRL CEO Todd Greenberg released a statement emphasising the importance of making Parramatta a great club once again.
“This decision paves the way for the Eels to get back on the right path for the fans, coach and football team,” he said.
“The NRL will work closely with the administrator to make that happen as quickly as possible. “
ClubsNSW also released a statement backing the government.
“ClubsNSW shares the concerns of the NSW Government, the football community and Parramatta Leagues members and believes there is a strong case for the appointment of an administrator,” the statement read.
“Such an appointment would ensure the club is placed on a sound governance footing, thereby allowing for a future board to be democratically elected by the Club’s members.”
Parramatta were found to have engaged in salary cap breaches dating back to 2013 and were slugged a $1 million fine and docked 12 competition points for the 2016 season.
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