Premiership Rugby has announced that the salary cap will rise over the next two years. For the 2016/2017 season the cap will jump to £6.5 million (it currently sits at £5.5 million), with a further increase to £7 million for the 2017/2018 season.
The decision came following a board meeting on Thursday, during which the rumoured investigation into alleged salary cap breaches was also discussed. The Premiership Rugby statement, which led with much fanfare with the news of the increased cap, included these paragraphs buried at the bottom:
“Over the last few months, there has been speculation, much of it significantly inaccurate, concerning investigations into Clubs. During that time, Premiership Rugby has not commented in view of the confidentiality obligations in the Regulations.
“It is important to clarify that investigations into potential issues concerning Clubs’ annual spend happen regularly as part of the Certification and annual audit of each Club. The Salary Cap Manager addresses these issues with the Clubs as part of the ongoing work to support the operational management of the system. Confidentiality, therefore, remains appropriate and necessary.
“Premiership Rugby can confirm that certain issues were pursued last season with some Clubs relating to access to information and to commercial contracts where there were differences of opinion as to the correct inclusion or not in the Salary Cap spend. The issues were not straightforward and were subject to differing legal opinion and consequent risk as to any judgment on the correct interpretation. Premiership Rugby and the Clubs have now resolved the issues identified and have entered into appropriate confidential settlements.
The ‘confidential settlements’ make it sound like those clubs that had kicked up a fuss about alleged breaches of the cap have been appeased somehow, and it seems unlikely that we will find out who exactly was being investigated.
Still, not everyone was happy, with Joe Marler – never one to mince his words – tweeting the following:
Yeh sure……….???? pic.twitter.com/zVxbr1Y6ep
— Joe Marler (@JoeMarler) October 23, 2015
The key elements of the salary cap rise as are follows:
– The Base levels will be £6.5m in 2016/17 and £7m in 2017/18 (2015/16 – £5.5m);
– The Base levels will include increased Home Grown Player Credits up to a maximum of £500k in 2016/17 and maximum £600k in 2017/18 to incentivise further the long-term development of talent through the Academies;
– In addition to the Base levels, Injury Dispensations up to a maximum of £400k per season continue to be available to each Club.
– Each Club can continue to have a maximum of two Excluded Players, with one being new to Premiership Rugby or not having played in Premiership Rugby for at least 12 months;
– A new England Senior EPS or International Player Credit in addition to the Base level to facilitate squad strengthening, particularly cover for player absence during international periods.
– There will be a new overrun tax on any Salary spend up to five per cent over the Base level (5 per cent being £325k in 2016-17 and £350k in 2017-18)
“The clubs intend to ensure that the English game thrives at club and country level and that we achieve domestic, European and International success,” said Premiership Rugby’s Chief Executive, Mark McCafferty.
“The financial performance of Premiership Rugby and its Clubs, including new commercial contracts with key partners, has helped facilitate plans for the further strengthening of playing squads, including the continued investment in the growth of English talent. This investment is intended to help drive the next phase of growth in English club and international rugby.”
Photo by: Patrick Khachfe / Onside Images
The moment anyone associated with Harlequins complains about salary caps etc is the moment someone should point out the history of Shameutirism as Quins through out the amateur era were one of the most blatant brown envelope in boot exponents.
Nice to see Mr Wray posting on here. How are you today, Nigel?
Joe Marler an expert forensic accountant with access to all the figures…..Yeh sure…..
I don’t think it needs an expert in accountancy to know that some clubs are creative in how they balance their salary cap books.
You don’t know that without seeing the figures and my point really was that Joe Marler is no better position than you or I to make insinuating, sarcastic tweets.
I’d think that he’s probably got a much better idea about what’s going on than many. In any event, I actually think it’s good that a current player is interested in the way his sport is being (mis)managed.
This statement pisses me off because it says one thing while doing completely the other.
“This investment is intended to help drive the next phase of growth in English club and international rugby”
No this investment is to allow clubs to spend even more on foreign imports at the expense of home grown talent.
+£2m in the pot to be spent on anyone
+100k in the pot to encourage home grown talent
2 players outside of cap provided they are not playing in the prem already (i.e. foreign imports)
Despite the smoke and mirrors it’s not difficult to work out what’s happend. A couple of clubs have been caught out breaching the spirit if not the letter of the salary cap and they’ve threatened legal action if they are named, shamed and penalised. Additionaly they’ve flashed the cash and bought off the other clubs with this ‘financial settlement’, I hope it’s a very very large settlement.
Hopefully they have now agreed a watertight definition of what is and is not included in the salary cap in return for the huge increase in the cap. Two aspects of this deal worry me. The two excluded players having to come from outside the Premiership i.e. they have to be foreign, why exactly? and does the ‘international player credit’ also apply to foreign internationals or just English players? could we find a situation where, for example, Northanpton are ‘compensated’ when G North plays for Wales.
Ray – agree totally. And I was worried about a cover up at the RFU! Oh well that leaves Sarries and Bath in the clear then with no stain on their honour, or whichever clubs it was that were being investigated……….
As for Marler, don’t knock what he is saying, I’m sure that the players (and their agents) have a much better idea of what is going on than we do.
“– Each Club can continue to have a maximum of two Excluded Players, with one being new to Premiership Rugby or not having played in Premiership Rugby for at least 12 months;”
For simplicity’s sake, shall we just call this the “Stefan Armitage Clause”
On the plus side the English clubs will now be able to pump more money into Welsh rugby.
Ray has it spot on I think – someone’s breached it but the suits have realised that they can’t enforce it without a load of legal ruckus, so gentleman’s handshake/whitewash, all agree we won’t do it again until the next time.
I see no point in having a salary cap and then not actually doing it. Wouldn’t it just be cleaner if they admitted there wasn’t really one?
Loving the fact you’ve pictured Sarries and Bath in the picture for this post!!