Comments on: Premiership Rugby announce new Salary Cap powers

By: Ray

Ray — Tue, 08 Oct 2013 15:17:55 +0000

Under these arrangements the scope for cheating does seem to be pretty limited. Clubs and players that feel themselves disadvantaged will always be ready to point their fingers at the cheats and the penalties for any cheats seem adequate. I believe the players retain ownership of their own image rights so if George North, like Jonny Wilkinson before him, elects to advertise – well almost anything – his rewards will be substantial and comletely outside the salary cap. Also clubs and players both receive payments for international ‘availability’. How does this effect the salary cap? does anyone know?

By: brighty

brighty — Tue, 08 Oct 2013 13:38:53 +0000

Agreed Jacob, the defence of the fact is sound, it’s just the boring repetition of it whenever they announce anything.

By: Jacob

Jacob — Tue, 08 Oct 2013 13:34:52 +0000

As I said it is very much off of rumours so I have no idea on the ins and outs. But I have heard it a few times.

On a much smaller scale my amateur cricket club who is not allowed to pay more than two players, puts up SA and Australian cricketers in housing for the summer through friends of friends. It is obviously policed nowhere near as closely as I assume this is; but I am pretty sure there are backhanded ways around it.

By: brighty

brighty — Tue, 08 Oct 2013 13:29:27 +0000

Those types of benefit are just viewed as extra salary so would just be income tax so no reason to believe the company pays the tax on those (my company deducts the tax on my medical insurance from my pay as part of PAYE).

By: brighty

brighty — Tue, 08 Oct 2013 13:27:42 +0000

Jacob, that can’t be right? That would be a tax liability so would need to be declared and hence the breach of the cap would be spotted quite easily (I’m assuming tax filings are one of the pieces of compliance evidence – hmm, perhaps I’m assuming too much that the policing of this thing is on anything more than a handshake?).

By: Matt

Matt — Tue, 08 Oct 2013 13:25:44 +0000

Wow, that’s an expensive way to do it. Employer has to pay huge amounts of tax on those types of benefit as I understand it.

By: Jamie

Jamie — Tue, 08 Oct 2013 13:16:42 +0000

Also working very much off rumours, I’ve heard of certain clubs with links to another country funding things for players from said country, in that country itself. Thus avoiding the salary cap in England.

Again, all just speculation.

By: Matt

Matt — Tue, 08 Oct 2013 13:06:06 +0000

Not claiming to be the best league, if it’s true that it’s the highest likelihood of the game being within a score then a claim of most competitive is fair enough.

It’s not like all the losing bonus points are being handed out in 6-3 snore fests at the moment either, some good rugby being played. Even Sarries have woken up to the fact that it’s possible to score more than 3 pointers.

By: Jacob

Jacob — Tue, 08 Oct 2013 13:00:19 +0000

“in the most competitive league in world rugby” Yawn, yawn…..

I thought the exact same thing when I read it; but in the defense of the Premiership (as I feel I have to) it does justify this statement with a fact about the most close matches…

By: Jacob

Jacob — Tue, 08 Oct 2013 12:59:10 +0000

I believe clubs often pay expenses like housing etc. – therefore meaning they can pay the player less but the player is still very comfortable financially.

I may be wrong but I have heard rumours of that sort before.

By: Matt

Matt — Tue, 08 Oct 2013 12:55:21 +0000

Does anyone know how the clubs that are alleged to exceed the cap currently work around the rules? My guess would be sponsorships and maybe bonuses? Whatever the loopholes are I hope they close them and keep the premiership competitive.

By: brighty

brighty — Tue, 08 Oct 2013 12:49:58 +0000

Mentioning France’s salary cap is funny. It’s 10 million Euros. When it was introduced it was already higher than any wage bill any French club had. It doesn’t include youth players earning “only” £50,000 and, much like England, doesn’t include outside money e.g. if your clubs main sponsor suddenly decides that Jonny would be a good advert for his new product. It hasn’t stopped the big likes of Brive and Biarritz spiraling into financial and rugby meltdowns.

“in the most competitive league in world rugby” Yawn, yawn…..