The former national team coach has not been able to get a formal contract with the Port Harcourt club making him not to resume his job at the moment
Eguavoen had demanded a proper contract from officials of the club after he recruited players for the new season and also took the team to Calabar and Uyo for pre-season camping.
The coach told the management of the Nigeria Professional Football League side that he will not start the new season without seeing his contract papers well documented, and he has been asked to stay out of the team for now.
Eguavoen was sighted in Owerri during the week one game between Heartland and Nembe City and when Goal.com asked him why he was in Owerri instead of staying with his club, he replied that he just came to watch the match in Owerri.
A source close to the Port-Harcourt side told Goal.com that Eguavoen may not return to the club because officials of the team are not ready to give him a contract.
"What they want to do to that young man is not good. How can they sign him since November last year and up till now they are still arguing about giving him a proper contract.
"I don't think they are ready to give him any contract. They want him to work without any contract so they can deal with him anytime they want.
"They just want him to work and because there is no contract, sack him anytime they want.
"It is not good that our players and coaches don't have valid contracts. This is where the body running the League should step in and insist that all clubs must give their players and coaches contracts," the source said.
Sharks General Manager, Okey Kpalokwu told Goal.com that they will give Eguavoen a contract when the Government is through with his contract papers.
"You know that we have to send the papers to the Ministry of Justice who will look into the papers and finalise everything concerning the contract.
"It is not as if we don't want to meet his demand, but we told him that the process will take a long time and that he should start work, while the Ministry puts finishing touches to all the details in the contract.
"We don't know how long it will take before the Ministry of Justice will finish everything about the contract because it will definistely take due process.
"But he said he will only work when the contract paper is ready and we asked him to wait until the paper is ready before he returns to the club," Kpalokwu said.
Dere Dukobo is presently in charge of the team who defeated Warri Wolves 2-1 in the first match of the season.