Parramatta Eels salary cap scandal: Emails reveal secret offshore payments
Date
April 11, 2016
Kate McClymont, Michael Chammas
Parramatta Eels former chief executive officer Scott Seward and ex-team manager Jason Irvine made secret cash payments into a player's overseas account in breach of salary cap requirements, documents obtained by Fairfax Media reveal.
Both men will be star witnesses at a National Rugby League investigation into allegations of widespread salary cap breaches at the embattled club.
Mr Seward was forced to resign from the club last year after being accused of going "rogue" and not telling the board about exceeding his authority in negotiations with players such as Kieran Foran, Will Hopoate and Anthony Watmough.
Former Parramatta Eels recruit Lee Mossop.
Photo: Anthony Johnson
Fairfax Media is not suggesting any of the players or their managers were involved in any wrongdoing.
For his part, Mr Seward is claiming he is being made the "fall guy" for the club. His claims are hotly disputed by board members, who say they had no knowledge of his activities, which they say included secretly negotiating a $230,000-a-
year payrise for coach Brad Arthur. The increase was subsequently reduced to $100,000 per year.
Kieran Foran's contact problems exposed Scott Seward
Photo: Getty Images
The board also claims that Manly player Anthony Watmough was offered a three-year deal with the Eels but that it wasn't until it was registered with the NRL that the board discovered Mr Seward had negotiated a four-year deal including a "marquee player" allowance which greatly exceeded what he had been instructed to offer.
Emails obtained by Fairfax Media reveal that Mr Seward, Mr Irvine and prominent player manager Wayne Beavis were involved in the payment of $50,000 into Lee Mossop's English bank account. Mossop joined the Eels in 2014 from English Super League club Wigan. His manager Mr Beavis organised a two-year contract for $400,000 a season. However, Mossop's arrival was marred by revelations he required shoulder surgery.
He played just three games for Parramatta. Mossop wanted a release from the second year of his lucrative contract to return home. The NRL was told that he had agreed to receive a payment of $35,000 to secure his release and a termination agreement for that amount was signed. However, documents obtained by Fairfax Media reveal that the actual amount negotiated by Mr Seward and Mr Beavis was $85,000.
Former Eels chief executive Scott Seward.
Photo: Getty Images
"A further $50k will be paid direct to Lee's UK bank account I understand to wrap the matter up," Mr Beavis wrote in one email.
However, the email trail indicates that Mr Seward had trouble getting the extra $50,000 and in late January 2015, Jason Irvine, the team manager, became involved.
On January 28, Mr Beavis emailed Mossop advising him he should have $20,000 in his account. "F--- this is hard work but my persistence is starting to pay off," wrote the manager.
Four year deal: Anthony Watmough
Photo: Getty Images
The following day Mr Beavis advised Mossop that "Irvy is handling everything" and that $20,000 was on the way.
But still the money failed to come. "Wayne they are talking **** ... they are f---ing us around and stalling things," complained Mossop on February 5.
Mr Beavis replied: "I am chasing like a greyhound ... Irvy tells me the Bank at this end are saying the account details you provided are wrong and the transfer keeps bouncing back…ring Irvy on [mobile phone number] to sort out."
Mr Beavis then emailed Mr Irvine and copied Mossop in. "Irvy the kid is not happy and I am sick to death of being f---ed around ..."
Mr Irvine kept Mr Seward informed of the problems and eventually two payments of $25,000 were made. But as of March 2015, they were still $25,000 short. On March 10, Mr Beavis emailed Mossop asking him for the dates and amounts he had received "from our good friend Irvy so I can tie up the figures and put this to bed once and for all".
It was subsequent problems with Kieran Foran's contract that brought Mr Seward undone.
The NRL notified the board that there were anomalies. Foran could walk away with a million-dollar payout if political instability continued on the factionalised board.
A tearful Mr Seward met with the board on June 11. Sources say the board was split with some wanting the CEO to be publicly sacked. In the end, he was allowed to resign citing "family reasons".
On June 12, Mr Seward signed a release which contained: "The Club has alleged that Mr Seward has sought to enter into agreements on behalf of the Club that, if finalised, may have contravened the NRL Salary Cap Rules and/or sponsorship rules." The deed also said Mr Seward "made admissions to the club's directors regarding the allegations".
Fairfax Media understands that during recent discussions with the NRL, Mr Seward claimed he signed the deed under duress.
Eels chairman Steve Sharp said in a press release issued on Sunday "there have clearly been many serious problems at the club" and that the Eels were offering "full assistance" to the NRL investigators.
Mr Irvine was made redundant 10 days after Mr Seward left. Asked about the payments to Mossop, Mr Irvine suggested he could not comment due to legal advice and to speak Mr Beavis.
Mr Irvine is now employed by businessman Bill Moss.
In February, Fairfax Media revealed that the NRL was investigating third-party payments to Watmough organised by a company controlled by Mr Moss' son Stephen.
Mr Seward is understood to have negotiated a lucrative four-year deal with another of Stephen Moss' companies to provide IT services to the club. Salary cap rules forbid firms involved in commercial relationships with clubs to engage in third party payment to players.
Fairfax Media understands Mr Irvine is unlikely to retain his position as logistics manager with the NSW State of Origin team at a board meeting this month.
It's likely the rugby league player agent association will prohibit Mr Beavis from representing his clients if he is found guilty of any wrongdoing in the Eels investigation.
Mr Beavis said he could not comment on contractual arrangements with players. Asked if he thought he had breached salary cap rules, Mr Beavis replied: "In my opinion, no."
