PARRAMATTA’s bumbling board could cost the embattled club more than $10 million

That is the cold, harsh financial reality of a board that has presided over a club in crisis.

The Daily Telegraph can reveal the financial black hole Parramatta face on top of being stripped of all 12 of their competition points on Tuesday for breaches of the salary cap.

Round 19

In a stunning cost to the club, Parramatta’s board has watched on as the Eels:

* Were fined $1m by the NRL on Tuesday;

* Flouted the salary cap by $3m since 2013 through undisclosed third party agreements;

* Face possible $2m payout to forward Anthony Watmough;

* Face potential $1.8m legal damages bill from former player Will Hopoate;

* Were stripped of $370,000 Auckland Nines prizemoney;

* Are bracing for a conservative $900,000 loss in predicted gate takings this season through the drama;

* Face further revenue decreases in merchandise and membership;

* Paid a $465,000 salary cap fine last year; and

* Became $570,000 over the salary cap for this season.

Steve Sharp remains under fire over the salary cap scandal. Picture: Gregg Porteous Source: News Corp Australia

A source close to the club said: “It is an extraordinary amount of wasted money.”

The cost mismanagement has led to calls for chairman Steve Sharp to stand down immediately.

Parramatta legends have praised Sharp’s passion for their club — before claiming the besieged chairman has little choice but to stand down. Former Eels and Australian stars Mick Cronin and Peter Wynn, who won a combined total of six grand finals between them at Parramatta, were united in wanting a fresh start for the embattled yet famous club. Cronin and Wynn are mates with Sharp, the salary cap drama placing a strain on friendships.

The NRL issued breach notices to deregister three board members — Sharp, deputy chairman Tom Issa and director Peter Serrao — and two senior executives, CEO John Boulous and football manager Daniel Anderson.

Cronin and Wynn were reluctant to comment on Sharp but did agree the five should step aside. Wynn and Cronin had planned to called Sharp to seek more facts about the Eels salary cap crisis. When pushed by The Daily Telegraph about whether Sharp should resign, both finally agreed.

Eels players Clint Gutherson, Tim Mannah, Anthony Watmough and Corey Norman emerge from the meeting with NRL CEO Todd Greenberg on Tuesday. Picture: Phil Hillyard Source: News Corp Australia

The deeply respected Cronin said: “The way that the evidence has been presented, you’d think the sensible thing for the people involved would be to stand down. Steve is a mate, yes. I have always thought of Steve as being a genuine Parramatta person. But they (NRL) are saying we are over the salary cap by half a million dollars. If they’ve got the evidence, I don’t know how they can fight it. The NRL must have the evidence. It seems to be a case that they can’t win.”

Wynn echoed Cronin’s sentiments.

Asked should they resign, Wynn said: “If that what it takes for the club to move ahead, then I feel they would have it in them to make that move. They’d have that in their make-up to do that (resign).”

Former Parramatta director Mario Libertini took to social media to attack Sharp, saying: “You certainly fooled many. You and you board have brought this club to its knees.”

Parramatta could face a payout for Watmough — should he be declared as having a career-ending injury — of about $2m. Who pays the bulk of that — either the insurer or Parramatta — remains to be seen. Watmough still has two-and-a-half years remaining on his Eels contract. The club would have to pay Watmough until the end of his contract, subject to what’s determined with the injury.

The Eels need to pay back the money they won in this years Auckland Nines. Source: News Corp Australia

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