Liquor & Gaming NSW is investigating whether Parramatta Leagues Club breached the Registered Clubs Act during the Eels' systematic rorting of the salary cap.
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The NRL has issued the Eels with a breach notice alleging the club promised illegal player payments totalling $3 million since 2013. The transactions, which allegedly came via third-party arrangements, inflated and fictitious invoices and in cash under the table, has piqued the interest of the club regulator.
L&GNSW has no jurisdiction over the Parramatta Eels or its board. However, given the same directors sit on the Parramatta Leagues Club board, they have the authority to stand them down if they are not deemed "fit and proper" to hold their positions. The development also raises the prospect of the PLC being hit with a mammoth fine, just days after the Eels were hit with a preliminary $1 million penalty by the NRL.
League Central is already in the process of deregistering Eels chairman Steve Sharp, directors Tom Issa and Peter Serrao, chief executive John Boulous and football operations manager Daniel Anderson for their role in the cap scandal. The five officials won a temporary reprieve against their deregistration in the Supreme Court, where a definitive ruling is expected on Friday.
However, Liquor and Gaming NSW could review the positions of the entire seven-person PLC board before making a determination. "Liquor & Gaming NSW has been monitoring the unfolding salary cap allegations levelled at the Parramatta Eels NRL Club," said a spokesperson for L&GNSW.
"The Parramatta National Rugby League Club Ltd (the NRL Club) which was subject to action by the NRL, and Parramatta Leagues Club Limited (the Registered Club), have identical boards. With the NRL handing down its interim report, L&GNSW will review the findings and assess whether there have been any breaches of the Registered Clubs Act that require further action."
An exhaustive NRL investigation, that included the analysis of more than 700,000 documents, marks the first time a club has been caught paying players in banknotes since the NSWRL introduced the salary cap in 1990. The fallout is far from over, with the NRL poised to focus on the role of player agents, and possibly players, during the next phase of investigation.
It's likely the NRL will share key documents, including the breach notices issued to the Eels and individual officials, should they be requested by L&GNSW. It is unclear whether some of the inflated and fictitious invoices the NRL referred to in its investigations are linked to the Parramatta Leagues Club or its providers.
