Parramatta Eels deducted 12 points, fined $1m for NRL salary cap breaches

Parramatta Eels’ systematic breaching of the salary cap has been a “stain on the game” said NRL chief executive Todd Greenberg on a “truly heartbreaking day” when the club was docked all 12 competition points secured so far this season.

The NRL delivered its preliminary findings into its salary cap investigation on Tuesday morning, with the club also handed the maximum financial penalty of $1m and stripped of their 2016 Auckland Nines title.

The punishment will send the Eels straight to the bottom of the ladder when the competition resumes in round 10, following this weekend’s break for representative games.

The club, which has been over the salary cap for five of the past six seasons, including the current campaign, will be allowed to begin competing for points once the club makes the necessary changes to comply with the 2016 cap – by offloading players or renegotiating deals.

The NRL also issued notices to five club officials – chairman, Steve Sharp; deputy chairman, Tom Issa; director Peter Serrao; CEO, John Boulous; and football manager Daniel Anderson. It requires them to show cause why their registrations should not be cancelled.

“As the governing body, we have a responsibility to act in the interests of the game for the long term,” Greenberg said. “At times, it gives us no pleasure to have to do so and this is one of those [times]. But we have to take a stand on behalf of the fans, the club and the game.

“This would be a tough outcome for many people, particularly the players and fans, but we believe it would be the start of a process to make the Parramatta club the powerhouse it should be.

“Unfortunately, we may have to go through this pain for the long-term health of the club and the game.”

The NRL said Parramatta will be given “a reasonable time” to respond to the proposed penalties.

A number of third-party deals are at the centre of the alleged breaches.

Despite the loss of 12 competition points, the Eels remain a mathematical chance of making this year’s finals series – the team needs to win at least 12 of their remaining 15 matches to finish in the top eight

Club great Peter Sterling said he doesn’t believe their season is over.

“This is a side that is capable. They’ve got such quality and depth there and such motivation now,” Sterling told the Nine network. “That’s the ray of sunshine this morning that has been a dark day and a dark couple of months.”

The Eels become the fourth team in NRL history to have points deducted for rorting the salary cap system, following Canterbury in 2002, the Warriors in 2006 and Melbourne in 2010.

Asked if the punishment meted out was harsh enough, Greenberg said he thought it was “pretty severe” and “a fair and just outcome”. He added that if the club went on to win the premiership after complying with the salary cap he would be “very happy”.

“But they have to comply with the salary cap, like every one of the other 15 clubs,” Greenberg added. “I watched Melbourne Storm fans and players have to continue to play a season without the ability to accrue points – I thought that was soul-destroying, both for the players and the fans.

“I’ve tried very hard to find a way forward here that Parramatta Eels can take a step forward today.”

The Eels next play South Sydney Rabbitohs a week on Friday.