Welsh Rugby forced to introduce salary cap

The WRU announced this afternoon that the country’s four provinces; the Scarlets, Ospreys, Blues and Dragons, will from the beginning of next season operate within a financial budge of £3.5 million, £500,000 less than the teams in the Aviva Premiership. This will not include development players or academy costs. Selections from the official statement can be found below:

“The Scarlets, Ospreys, Cardiff Blues and Newport Gwent Dragons have united under a landmark legal agreement that will seek to deliver greater long-term sustainability in regional rugby supported by the WRU.”

“Designed to be considerably more straight-forward in its execution than other cap mechanisms already in place, both within rugby and other world sports, the regional cap of £3.5m covers purely the registered European squad of each region from the 2012/13 season and does not include development players or academy costs.”

“The agreement will commence July 2012 – 30 June 2013 and will be reviewed annually with the initiative regulated by the scrutiny committee comprising board level representation from each of the regions, Regional Rugby Wales Chief Executive and an independent chairman. The scrutiny committee will ensure the cap is fully adhered to and accurately reflects the economic climate and the financial requirements of the Regional organisations. All existing player contracts will be honoured in full.”

“All four regions are working very hard indeed to manage their businesses more effectively in a very difficult environment for everyone. As part of that, it is essential that every element of the circa £30m annual costs involved with operating four professional rugby businesses in European competition, is examined in detail and managed effectively. The introduction of this agreement and the European squad salary cap illustrates pragmatic and responsible action in tough times.”

How will this impact Welsh domestic rugby going forward? With attendance figures sliding and a handful of stars linked with moves abroad, as we discussed earlier today regarding Adam Jones, is this a bad move? Give us your thoughts.

7 thoughts on “Welsh Rugby forced to introduce salary cap

    1. I don’t see the WRU stepping in to pay towArds individual players for a start it would cause a rugby political storm if one region was favoured ahead of another . The only way this would come about would be central contracts for all players .

      think it’s more about controlling the internal transfer market within Wales and regions not competing against each other in a Dutch auction and also sustaining themselves on a budget they can just about afford .

      It will have no effect on external conditions such as the player drain to France (other than probably increase it ). Getting a bit like the old going North days but at least with the advantsge that the players will be playing the right code.

      If there is a silver lining then at least more youngsters will continue to be blooded if established players leave .

      1. Ye I really fail to see how limiting how much players can get paid is going to help the regions (and wales) hang on to their players…

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