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National Rugby League Side Parramatta Could Be In Hands Of Administrator

One of the groups "attempting to gain control" of National Rugby League side Parramatta Eels "has raised concerns over the money and time that could be frittered away" if an administrator were at the helm of the club for an extended period, according to Brent Read of THE AUSTRALIAN. The Eels "could be in the hands of an administrator as soon as this week," with New South Wales Deputy Premier Troy Grant waiting on a recommendation from the Independent Liquor and Gaming Authority on the "best way forward." If an administrator "were appointed to take control of the ­leagues club, there would be significant ramifications for the football club given they share the same board." Lawyer Brendon Noney is "also concerned over the financial impact of placing the club in the hands of an administrator." Noney: "I would like to be able to work with the administrator to bring about an election as early as possible so the members get a say. I understand why the legislation is there. But a club is about the members. How long will it be before the members get a say in how the club is run? I can’t see this process costing anywhere less than A$1 million ($760,000), maybe more. Depending how long they're going to be there, it's going to cost a fortune. That's members' money at the end of the day. That's why I think it has to be short and sharp" (THE AUSTRALIAN, 7/18). Read reported in a separate piece Parramatta directors have until Monday "to apply for leave to appeal their sanctions from the NRL but the decision may be taken out of their hands" after board member Geoff Gerard on Sunday joined Chair Steve Sharp in "publicly endorsing plans to put the club in the hands of an administrator." The decision "comes at a critical time in the club’s fight against the NRL." While the government "would move against the leagues club board, the football club is run by the same group of directors." The leagues club has also been responsible for financing the football club and its legal fees. An administrator "is unlikely to support an appeal given it would mean outlaying more money on lawyers," even though the club has received advice that suggests it "may be able to mitigate any costs" by having its sanctions reduced. It is believed the club has also received legal advice that the decision to strip the club of its points differential for the opening nine games of the season "may have been beyond the bounds of the NRL." It is believed the legal bill would be less than A$100,000 ($76,000), an investment that "could pay off if the club were to have the fine reduced on appeal" (THE AUSTRALIAN, 7/18).

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