Eels CEO Report

BERNIE GURR

“Having established our values, we also provided clarity around the direction of our Club by setting a clear purpose; we are focused on successful Rugby League programs and a commitment to our Community programs.”

Dear Members The year ended 31 October 2017 was a year of transition for Parramatta National Rugby League Club Pty Limited (PNRL). The journey to rebuild our great Club had commenced in July 2016, with the appointment of Max Donnelly as Administrator of Parramatta Leagues Club and the subsequent appointment of Max as Chairman of PNRL, along with the installation of fellow Ferrier Hodgson Partners, Jim Sarantinos and Steve Sherman, as Directors.

The key goal of the constitutional reform of PNRL was to deliver a high quality, independent Board of Directors. Following an extensive search process, whereby a detailed skills matrix determined the applicability of these new Directors to provide meaningful contributions, 5 new independent Directors were appointed on 24 February 2017. This was a pivotal day in the recent history of PNRL.

The 5 new Directors are Vicki Leaver, Sean McElduff, Michael McRitchie, Colin James Robertshaw and Anthony Shiner. Max Donnelly remains as Chairman while Jim Sarantinos continues as a Director. Over the past 10 months, our new Directors have demonstrated a genuine commitment to the future success and sustainability of the Parramatta Eels Club.

The Board, management and staff are dedicated to rebuilding the stability in our Club and regaining the trust of all stakeholders following several controversial years. All Parramatta Eels Directors, management and staff have committed to living our values of Respect, Integrity and Excellence and making these values the foundations for our behaviours and decision-making.

Having established our values, we also provided clarity around the direction of our Club by setting a clear purpose; we are focused on successful Rugby League programs and a commitment to our Community programs, namely the Parramatta Junior League, schools and charity partners. We will be fan-centric and provide value for our commercial partners. We need quality people, focused on financial sustainability and good governance.

Professional sports is “big business” these days, with many silos such as, Sponsorship, Membership, Merchandise, Game Day, Events, Community Programs, Junior League, Schools, Communications, Media, Digital, Social Media platforms, HR, Finance, Legal etc…… but, at our core: We are a Football Club – and we cannot lose sight of this fact.

The hub of our Club is Rugby League Football and the above silos are the spokes that support Rugby League Football. The focus of our efforts is to support our Football Program, which, under Brad Arthur’s leadership, is in good shape.

Our NRL team had a strong 2017 season, finishing in 4th place after the regular season. The team demonstrated commendable resilience given our large injury toll. Our joint venture with Wentworthville Magpies in the NSWRL Intrust Super Cup continues to prosper and we have just renewed for the 2018 and 2019 seasons.

Our National Youth Cup (NYC Under 20) team made the 2017 Grand Final and lost in the last few seconds. Nevertheless, a great year under coach, Luke Burt; Luke has joined the Gold Coast Titans in 2018 as an Assistant NRL Coach and we thank Luke for his magnificent contribution to the Eels over many years and wish him and his family “all the best”.

Our SG Ball Under 18 side had a phenomenal season under the coaching of Scott Jones. Our team won the NSWRL SG Ball competition and then went on to win the Australian Under 18 Championship. Our Harold Matthews squad finished 1 game from the Grand Final.

Our Membership team produced record membership numbers in 2017 while our Commercial team has generated substantial traction that will be realised in improved financial returns in 2018.

We made great strides in re-engaging with our Parramatta Junior League (PJL); we have around 6,000 kids playing Rugby League in the PJL and we will continue to provide substantial support to the kids and families in our district. With Parramatta Stadium being demolished in 2017, we played our home games at ANZ Stadium. This relocation provided significant challenges but, led by our Game Day team, we made excellent efforts to accommodate our loyal fans.

The commitment of our NRL Players to our Club’s Community initiatives is inspiring. Our Players are doing much wonderful work in the community and we are appreciative of their contributions.

As we look towards 2018, we see a great period ahead for the Parramatta Eels. We have a generational opportunity with the construction of the 30,000-seat Western Sydney Stadium adjacent to Parramatta Leagues Club (PLC), due for completion in April 2019. With PLC’s $130 million development over the next few years, we will have the best sports and entertainment precinct in Australia.

We continue to work closely with our colleagues at PLC and recognise the financial support provided by PLC to the Parramatta Eels.

To all our Staff and Players – I thank you for your commitment to rebuilding our great Club.

Best regards,

Bernie Gurr Chief Executive Officer Parramatta National Rugby League Club Pty Limited

ADMINISTRATOR’S REPORT

Your administrator submits his report on Parramatta Leagues’ Club Limited (the “Company”) and the entities it controlled (collectively, the “Group”) for the period ended 31 October 2017.

Administrator The name of the Group’s administrator in office during the financial period and until the date of this report is set out below. The administrator was in office for this entire period. Max Donnelly

Dividends There were no dividends paid or payable for the financial period (2016: $nil). The Constitution of the Company does not permit any operating surplus to be distributed by way of dividend.

Principal activities The principal activities of the Group during the course of the financial period consisted of the conduct and promotion of licensed social clubs for members of the club and promotion of rugby league football within the Parramatta district. There were no significant changes in the nature of the Group’s activities during the period.

Overall objectives To ensure Parramatta Leagues’ Club Limited is the most professional and progressive multipurpose hospitality venue in Greater Western Sydney, by providing excellence in service and amenities for all members; and to foster, encourage, promote and control the development, playing and interests of rugby league football within the area of the geographical boundaries of Parramatta National Rugby League Club Pty Limited, a subsidiary within the Group, as defined from time to time in the bylaws of the league’s governing body.

Operating results for the period The net profit after tax of the Group for the period ended 31 October 2017 was $1,513,555 (year ended 31 December 2016: $8,424,314). Significant changes in the state of affairs During the period, the Company aligned their financial year end with the football season which results in a change from 31 December to 31 October. There were no significant changes in the state of affairs of the Group during the period.

Events occurring after the reporting period No matter or circumstance has arisen since 31 October 2017 that has significantly affected, or may significantly affect: • the Group’s operations in future financial years, or • the results of those operations in future financial years, or • the Group’s state of affairs in future financial years.

Likely developments and expected results Likely developments in the operations of the Group and the expected results of those operations in future financial years have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice to the Group.

Environmental regulation and performance The Group is not subject to any particular or significant environmental regulation under laws of the Commonwealth or of a State or Territory.

Meetings of administrator The number of meetings the Company’s administrator held during the period ended 31 October 2017 and the number of meetings attended by the administrator was:

Full meetings of administrator A B

Max Donnelly 10 10

A = Number of meetings attended B = Number of meetings held during the time the temporary administrator held office during the period.

ADMINISTRATOR’S REPORT

Insurance of administrator and officers During the financial period, Parramatta Leagues’ Club Limited held a management liability insurance policy under the administrator and officers liability cover. The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the officers in their capacity as officers of the Company, and any other payments arising from liabilities incurred by the officers in connection with such proceedings. This does not include such liabilities that arise from conduct involving a wilful breach of duty by the officers or the improper use by the officers of their position or of information to gain advantage for themselves or someone else or to cause detriment to the company. It is not possible to apportion the premium between amounts relating to the insurance against legal costs and those relating to other liabilities.

Indemnification of auditors To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young, as part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify Ernst & Young during or since the financial period.

Proceedings on behalf of the Group No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings. No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of the Corporations Act 2001. Membership The Company is a company limited by guarantee and is without share capital. The number of members as at 31 October 2017 was 42,333 (31 December 2016: 42,462).

Members’ limited liability In accordance with the Constitution of the Company, every member of the Company undertakes to contribute an amount limited to $4 per member in the event of the winding up of the Company during the time that he or she is a member or within one year thereafter.

Auditor independence declaration The administrator has received a declaration from the auditor of Parramatta Leagues’ Club Limited. This has been included on page 13. This report is made in accordance with a resolution of the administrator.

Max Donnelly Administrator Sydney 18 December 2017