19/07/2016 5:22 PM AEST | Updated 19/07/2016 5:43 PM AEST

NSW Government Sacks Parramatta Eels Board

'The club's board had ceased to be effective as a governing body.'

Ultimately, the players will benefit from this.
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Ultimately, the players will benefit from this.

First the greyhound industry, now this. The NSW government has officially axed the Parramatta board after a series of scandals which have engulfed the club, including systematic salary cap rorting totalling $3 million going back to 2013.

Administrator Max Donnelly has been charged with running the club until a new board is appointed.

The Independent Liquor and Gaming Authority board met on Tuesday afternoon and decided that Parramatta Leagues Club directors had ceased to be effective as a governing body.

The Leagues Club directors also sit on the football club board, so this effectively wipes out the Eels' administration.

NRL CEO Todd Greenberg issued the following brief statement in response to the news:

"Our only interest is to help Parramatta become a strong and successful club again. That will only happen if the club has a strong back office with the highest standards of governance.

This decision paves the way for the Eels to get back on the right path for the fans, coach and football team. The NRL will work closely with the administrator to make that happen as quickly as possible."

The Eels were fined $1 million and docked the 12 competition points they had earned in May when news of the salary cap cheating was first made public. The Eels board announced last week that they would fight the penalties, but it now appears doubtful that will happen

In an official statement, the NSW Independent Liquor & Gaming Authority (ILGA) Board said that it was of the opinion that "the club's board had ceased to be effective as a governing body".

"The ILGA Board wishes to make clear that the appointment of a temporary administrator does not relate to any suggestion of insolvency," it said.

The temporary administrator will remain in place until the ILGA Board otherwise orders."

Administrator Max Donnelly is a senior executive at accounting firm Ferrier Hodgson, was previously the official liquidator of Parramatta's former major sponsor, James Hardie.

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