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National Rugby League Side Parramatta Eels Set To Lose More Than $8M

National Rugby League side Parramatta Eels will lose more than A$11M ($8.36M) -- including A$1.24M ($940,000) in legal advisers and consultants’ fees -- for its "disastrous 2016 season in what is understood to be the biggest single-year loss in NRL history," according to Nick Tabakoff of the Sydney DAILY TELEGRAPH. The revelations "will be made in a letter to members as the Eels unveil the full financial damage from a scandal-plagued season in which the club’s entire board was sacked over systematic rorting of the NRL salary cap." The "massive bill has been picked up by the Eels’ rich poker machine palace parent, the Parramatta Leagues Club." Despite its huge subsidy to the Eels, the leagues club "will still make an annual profit" of about A$4M ($3.04M). The Eels’ '16 losses include:

  • A$952,000 ($723,400) in player terminations;
  • A$1.12M ($850,000) in fines and penalties;
  • A$1.24M ($940,000) in legal advisers and consultants’ fees;
  • A$700,000 ($531,910) in lost sponsorship revenue, most notably including what would have been paid by Infinity and Cleanaway had they seen out the '16 season with Parramatta;
  • A$742,000 ($563,820) provision for “sponsorship bad debt,” most notably sponsors of the Eels that are currently in dispute about their obligations.
Eels CEO Bevan Paul said that a planned A$130M ($98.8M) redevelopment of the leagues club -- due to be completed in '19 -- "was 'fundamental' to its future profitability" (DAILY TELEGRAPH, 10/24).

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