Parramatta fans should welcome the penalties issued by the NRL for the Eels breaching the salary cap, if only because it will prompt thorough examination of the way the club operates.
I’m obviously talking about the NRL forcing Parramatta to undertake an independent review of its governance and organisational capability more than the $525,000 fine, which is significant but which wouldn’t automatically promote change.
If the club doesn’t undertake the review and implement changes recommended by that review it will be docked four competition points at the start of next season.
Expect the Eels to proceed with the review, however begrudgingly.
Parramatta, in its media release that followed the NRL release announcing the penalties, had a different spin on things to the league.
In an awesome display of mismanagement, the Eels managed to overspend in all four salary cap categories for 2014 – NRL top 25 ($101,718), NRL second tier ($233,036), NYC top 20 ($60,915) and NYC second tier ($8277).
Benefits provided to Parramatta players by Parramatta Leagues Club in 2013 also represented a cap breach, the league said.
The NRL said the breaches “were significant and were the product of inadequate oversight and governance at the club, largely by previous administrations”.
Importantly, the NRL said it had “worked proactively to try to help the club avoid breaching the caps. The club had been given multiple warnings that it was in danger of breaching the caps but did not take sufficient steps to address the non-compliance.”
Normally, the league imposes cap fines that are equal to the cap breach, but in this instance it said Parramatta “would be fined an additional penalty, taking the total to $525,000, for failing to take action to rectify its salary cap problems despite being warned to do so.”
The league made it clear Parramatta’s governance had failed, whilst acknowledging that “steps were now being taken to improve the systems at Parramatta.”
The Eels, in their statement, said the NRL had acknowledged that “the primary contributing factor was consistent mismanagement of the NRL and NYC playing squad and salary cap compliance between 2010 and mid-2013.”
The release went on to say that in 2013 “the newly-elected board of the Parramatta Leagues Club initiated an extensive internal investigation, which by late 2013 had raised significant concerns regarding player contracts and squad management.”
It continued: “Eels senior management alerted the NRL of its concerns, and it was determined that the club would continue to advise the NRL of all subsequent issues to be considered as part of the NRL’s regular 2014 mid-season salary cap audit.”
The statement said what had happened was “symptomatic of wider failures in the previous administrations of the club” and Eels chairman Steve Sharp was quoted as saying the findings “again highlight that dark period for our club between 2010 and 2013.”
But there was no reference to the league’s statement that it had “worked proactively to try to help the club avoid breaching the caps. The club had been given multiple warnings that it was in danger of breaching the caps but did not take sufficient steps to address the non-compliance.”
What isn’t under question is that the Parramatta management has been dysfunctional in the past and while the club argues that it has significantly improved its practices, the way the club operates is now set to go under the microscope.
That is how the NRL operates these days. It seizes every opportunity to force governance changes at clubs.
It has already done that with several clubs in exchange for providing financial assistance and now it has taken the opportunity to force change at Parramatta.
That can only be a good thing.
One thing I’d really like to know, but which we may never find out, is exactly what the so-called “political turmoil” clause in the contract of Parramatta’s big signing for next year – Kieran Foran – says.
Fairfax Media reported earlier this month that current Manly star Foran has a clause in his Eels contract which allows him to exit his four-year deal at any stage if the sort of political turmoil for which the club has become known in recent years results in further upheaval at the club.
In terms of unusual contract clauses, that would have to be one of the greats.
Parra
Guest
I'm sick of this clubs hopeless off and on field performance. Instead of accepting the fine and requirement for an independence review the idiots choose to fight it instead??? For the sake of the fans accept the fine and get on with the review and implement all changes recommended in line with the NRL governance policy. The only way forward. This will likely result in replacing the existing board with independent directors hence the reaction to commission a separate review without the NRL involved. The current board are not qualified to run a club. They make think they do but are ignorant of what is needed to make parra great again. If there is no improvement by next feb I'll stop renewing my membership.
turbodewd
Guest
What about an independent review of the whole NRL! The game needs a complete makeover. We are watching the 3rd consecutive year of lower regular season crowd averages. We are seeing several dysfunctional clubs (Titans, Tigers, Newcastle, Eels). We have a game which doesnt know if its Arthur or Martha and this is letting the A League and AFL make inroads. The Gold Coast Suns are arguably 10 times stronger than the hapless Titans. Rugby league culture isnt on a winning roll...its going sideways. It has SOOO much potential!
Parra fan
Guest
Agree with your article. Things need to have gotten worse before they get better at the Eels. The fans have suffered long enough at the hands of the past players and CEOs who might have the best intentions but just end up undermining one another. The club cannot move forward on and off the field until people can put their ego aside and step aside. I for one will not take my kids to an Eels game until the club sorts itself out, assuming it does.
Carlos
Guest
Yep frustrating beyond belief
steve b
Roar Guru
Carlos their is many that feel the same at the moment i am sure .Listening to Smith was painful knowing what has gone on for years this guy made out like they were the good guys in this B.S. when in fact had they used their authority way back when and sorted the stupid cap rules years ago none of this could have happened but its such cluster f---k that until they sort out a different system it can and will happen again.
Crosscoder
Roar Guru
And one wonders why the clubs' chairman held a meeting to argue their gripes at the NRL/ARLC as not being consulted etc. The very same clubs that pushed for an Independent commission ,getting away from club cliques,power pushers,now getting uptight. It would appear with the recent efforts of the Titans,Newcastle,Sharks,.Tigers,,St George, and now the Eels,that the need for an independent decision maker was vital.The so called governance of these clubs ,to varying degrees was shown to be lacking. The days of ex footballers and well meaning supporters running clubs has gone the way of the brick phone.
steve b
Roar Guru
Honestly what a joke , the NRL gets end of year numbers from every club and yet it has just come to light now when they knew there was something wrong in 2013 . They are the governing body why did they wait so long to jump in and do something before it got to this. Anyhow it can only be a good thing in the long run maybe we can finally get a smooth running board with less B.S. that we have had over the past five years or more. But i still think the N.R.L. need to change a few things and be able to put the brakes on things before it gets to this.More great PR. For rugby league
Adam
Guest
This isn't all Board issues, this is day-day management. Paul Osbourne started the rot - which no one can be surprised by and Ken Edwards obviously couldn't sort it out. Granted these people are appointed by the Board and finances are over seen by the board, but the pathetic fighting for control of the Eels Board isn't completely hand-in-hand with the problem.
Carlos
Guest
My old man was coached by Dick Thornett knew the Thornett brothers and has supported Parra since the 50's I have literally supported Parra since I was a baby (long time ago) and attended 100's of games but both of us are really at the end of our tethers with the club. Seriously considering buying a season pass for the Swans next year. Its not the losses on the field or the players it's the years of frustrating pass the arse hat management. Theres was a brief glimmer of hope when Daniel Anderson was running the show...well head office took care of that. The thing that mightily pisses my dad and I off is that as usual we seem to have volunteered ourselves into this trouble...FFS... Have the Broncs ever been under the cap ?... Does anyone seriously believe the Roosters 2013 Premiership team was even remotely under the cap ? ... Would anyone like to start holding their breath till the NRL effectively manages the inconsistencies and reigns in the stupidities of the salary cap? Rant over
Sleiman Azizi
Roar Guru
Didn't Ricky Stuart have the same kind of clause in his contract when he was at Parramatta? Basket case of a club that should be bigger than Souths and Brisbane by now. Still, this can only be a good thing for the Eels. A shame it had to take a big stick to move them and not vision and foresight. But then, boys clubs are not known for much else except themselves.
Epiquin
Roar Guru
Parramatta is a really good example of the old 'boys club' style of management that dominated the NRL and why the new guard is trying so hard to wipe it out. For everyone who laments the current NRL management's lack of on-field experience, THIS is the alternative.
Anto
Guest
And the "newly elected Board" from 2013 was just re-elected, overwhelmingly. Dysfunctional doesn't even begin to describe the situation.
Benedict Arnold
Guest
It's amazing to think that eels actually raised the issue with the NRL and knew they were making infringements and yet failed to either fix the problem or follow any sort of protocol provided by the NRL to remedy the problem. Part of me thinks that maybe the focus was elsewhere in the club with elections and political turmoil hence the negligence, the other part thinks that maybe with all the money coming out the leagues club it was best decided to just cop a fine a chin because the club wasn't risking much as it wasn't doing well in the competition anyways.