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Leagues and Governing Bodies

Parramatta Eels Debacle Shows NRL Will Use Government To Keep Clubs In Line

The National Rugby League spent 20 years "waiting for its chance" to reform the Parramatta Eels, according to Roy Masters of the SYDNEY MORNING HERALD. The process of club reform started under former NRL CEO Dave Smith "with the restructure of the Gold Coast Titans, Wests Tigers, Cronulla Sharks and Newcastle Knights." The opportunity to reform these clubs "presented itself through their destitute financial positions." The Eels "were a much harder nut to crack." With the financial power of the Parramatta Leagues Club behind it, the club has "never wanted for money." The NRL's opportunity to "force reform at the Eels was not through financial pressure, rather, Parramatta handed the league its opportunity through the shambolic salary cap scheme its directors had cooked up to try to return the club to the glory days." NRL CEO Todd Greenberg has "forged a strong relationship with NSW Premier Mike Baird." The benefits of that co-operative spirit "were writ large in the government's decision to side with the NRL and dismiss the Eels board." The government's Office of Liquor & Gaming "ultimately brought the guillotine down on the Eels board." It was a "decisive step from the department" but, ultimately, the "job was made much easier for the department by the investigative report" compiled by NRL Integrity Head Nick Weeks and his team. It took the NRL some time to achieve its ends, "initially believing the salary cap breaches at Parramatta were the result of incompetence, rather than wilful cheating." But, ultimately, the integrity unit's investigation into the Eels "led to financial penalties, the cancellation of registered officials and, finally, the appointment of an administrator" (SMH, 7/30).

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