The 33-year-old signed a reported $2.4 million four-year-deal with the Eels at the end of 2014 but managed just 17 games over two seasons.

The Eels were hoping the injury and subsequent payout would be covered by insurance but Watmough’s claim was knocked back after QBE deemed his injury to be pre-existing.

The letter reportedly said: “your inability to play in the NRL or any other professional league is the result of symptomatic, pre-existing degenerative changes to your left knee”.

“In the circumstances, we have determined that you are not eligible for the benefits claimed under the policy.”

Watmough and the Eels were at loggerheads over the payout with the former NSW and Test back-rower reportedly threatening to walk onto the Parramatta training paddock in the pre-season which would have made his $600,000 a year wage count towards the 2017 salary cap.

A disastrous proposition considering their 2016 salary cap woes.