Eels to challenge NRL over cap rulings

The Parramatta Eels have released a statement saying they will challenge the NRL's ruling over salary cap breaches.

Eels fans celebrate

The Parramatta Eels will challenge the NRL's ruling on salary cap breaches. (AAP)

Parramatta have seven days to lodge a written appeal after announcing they will challenge the NRL's ruling on salary cap breaches.

Parramatta are facing a fine of $525,000 and the loss of competition points next season after the NRL issued a breach notice to the club on Thursday for overspending by more than $400,000 across four of the game's salary cap categories last year.

After a horror week, which included going down 14-12 to South Sydney on Friday night to be last on the NRL ladder, the club announced on Saturday they planned to challenge some of the governing body's rulings.

The club's board met on Friday and resolved to challenge several matters, Eels chairman Steve Sharp said in a statement.

Parramatta have accepted some of the breaches that led to the NRL fine but are challenging aspects of the rulings, in particular that they conduct an independent review.

The club have announced plans to call in accounting firm PricewaterhouseCoopers to conduct a review without the NRL's involvement.

The club have accepted they breached the salary cap however Sharp condemned as "a breach of trust" the NRL's threat to deduct four competition points next year unless reforms are implemented by February.

"The current Eels administration is the only NRL club administration to have attempted constitutional change consistent with the NRL's governance policy and the only current NRL club with a constitutional reform committee, led by a newly-elected and united board," Sharp said.

"As the NRL acknowledged and made clear on Thursday, our club is compliant across all four NRL and NYC salary caps for 2015 and forecast to be so again in 2016."

PARRAMATTA CAP BREACHES FROM 2014

* NRL Top 25 - $101,718

* NRL 2nd tier - $233,036

* NYC Top 20 - $60,915

* NYC 2nd tier - $8277


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Source: AAP


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