The NRL is poised to rule whether a third-party agreement for star forward Anthony Watmough was sufficiently at arm's length from a club consultant to avoid constituting a salary cap breach.
Fairfax Media can reveal the governing body registered a TPA for Watmough with PJ Promotions, an events company that has now been wound up. It's alleged the Eels may not have fully disclosed the company's relationship with one of its consultants, Tracy McKelligott. McKelligott had been engaged as a brand marketing manager by the club, through her firm Eclipse Events and PR Group. McKelligott also had links to PJ Promotions, which was run by members of her family. McKelligott has been previously described as 'director of show organiser' in previous press reports on the company and was listed as the organiser contact for last year's Newcastle Home Show, an event run by PJ Promotions.
It is understood former Parramatta CFO Ed Farish raised concerns about potential conflicts of interests, fearing head office may frown upon a consultant on the club's books being so closely associated with the company entering into a TPA with a star player.
It was one of several issues Farish raised via email to Parramatta powerbrokers, including the club's dealing with firms including Black Citrus, Green Options, clothing label Zibara and Egroup Security. Farish implored officials to raise any potential issues with Rugby League Central, but their failure to do so on at least some occasions raises the prospect of heavy sanctions. The Eels are likely to be docked competition points and slugged with a massive fine, while any officials found to have contravened the NRL's code of conduct face the sack.
McKelligott's services were first engaged by former Eels CEO Ken Edwards and she continued to consult to the club under his successor, Scott Seward. The Watmough-PJ Promotions deal was registered with the NRL during Seward's tenure. When current CEO John Boulous took over, he decided not to continue to engage the Eclipse Agency, preferring to instead bring all of the club's marketing in-house.
It's understood when McKelligott was relieved of her services, PJ Promotions decided not to follow through with the third-party deal with Watmough and the former NSW and Australian backrower likely didn't benefit financially.
However, the NRL could still issue a breach notice and/or ensure the Eels include any mooted deal in their salary cap if they believe the club didn't properly disclose the arrangement.
McKelligott, currently on extended sick leave, didn't return calls. Boulos said the TPA pre-dated his time as CEO. "The issues relating to this old third party arrangement have been the subject of discussions between myself and the NRL," Boulous said. "The third party arrangement between PJ Promotions and the relevant player was registered with the NRL. "It has been confirmed that the agreement between PJ Promotions and the player, albeit registered with the NRL, had not commenced prior to its termination by PJ Promotions. "Further to that, in the current discussions with the NRL it may be deemed necessary that the third party agreement 'figure' should be included in the salary cap. Current management would make provision for this if it were required."
Watmough hasn't played this season due to a knee injury. Ironically, he may be able to solve some of Parramatta's cap issues if he is forced into premature retirement, as insurance will cover the remaining years of his contract and won't count against the club's salary cap.
Farish's email to Eels officials shapes as the smoking gun in the NRL's investigation into the club.
Fairfax Media revealed in February that Rugby League Central was probing another payment to Watmough from one of two companies of which Stephen Moss - the son of Eels tragic and former Macquarie Bank executive Bill Moss - is the sole director. The issue relates to TPAs from Scorecube - a wholly owned subsidiary of BlackCitrus - to Watmough that wasn't properly disclosed to head office. Former fullback Jarryd Hayne is believed to also be the beneficiary of a similar arrangement. There is no suggestion of any wrongdoing by either players or their managers.
Other issues to pique the interest of head office include Parramatta paying clothing provider Zibara a significant sum for merchandise, despite the club having no record of any goods ever being received.
"Mr Farish's email has also been discussed at great length with the NRL," Boulous said. "Current management has been able to provide important and revealing context to the NRL regarding this email. Current management has offered and delivered full transparency to the NRL as part of its investigation."
The latest revelations come as the NRL prepares to hand down its sanctions this week. Before they do so, the club will first stage a Parramatta Leagues Club annual general meeting that is likely to be the most volatile in its history.
A number of special and ordinary resolutions have been proposed for Monday's gathering, including proposed protections around the privatisation of the franchise. However, there is a feeling members will shoot down all of the resolutions in protest over the way the way the board and management have run the club.
