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Leicester statement: Tigers respond to £300k salary cap punishment

By Liam Heagney
(Photo by Mike Egerton/PA Images via Getty Images)

Leicester Tigers have issued their response after the conclusion of the Premiership Rugby salary cap investigation resulted in the current league leaders having to pay £309,841.06 in fines and taxes – but Steve Borthwick’s side have avoided a points deduction.

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It was late December when it emerged that the current Gallagher Premiership league leaders were being investigated by salary cap director Andrew Rogers over alleged issues surrounding seasons 2016/17 to 2020/21.

He has now published his findings, issuing a heavy financial penalty against the club for previously undisclosed payments whereby a third-party company made payments to the image rights companies of players.

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Leicester CEO Andrea Pinchen said: “The club has co-operated with Premiership Rugby throughout the period of the investigation into historic salary cap spending. We accept the decision and the acknowledgement that there was no over-run in the most recent season of the review.

“We are thankful this matter has been brought to a conclusion and pleased that we can now focus all of our energy and efforts on the future of the club.”

Premiership Rugby explained in their investigation statement: “As a result of the previously undisclosed payments now being counted as salary, salary cap director Rogers determined that the Tigers exceeded the salary cap by the following amounts:
2016/17: £147,750 (Senior salary cap £6,000,000; Overrun limit £325,000)
2017/18: £89,718.05 (Senior salary cap £6,400,000; Overrun limit £350,000)
2018/19: £55,886.69 (Senior salary cap £6,400,000; Overrun limit £350,000)
2019/20: £98,586.32 (Senior salary cap £6,400,000; Overrun limit £350,000)

“During the relevant period, the Salary Cap regulations stated that for the first £50,000 of Overrun, a club would pay a tax of £0.50 for every £1 of overspend. Beyond the first £50,000 and up to £200,000 of Overrun, the tax is £1 for every £1 of additional overspend.

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“Consequently, the breakdown of the overrun tax on Leicester was:
2016/17: £122,750;
2017/18: £64,718.05;
2018/19: £30,886.69;
2019/20: £73,586.32.

“In addition, Leicester were fined £17,900 for failing to disclose information about the above arrangements in the five seasons from 2016/17 to 2020/21. This made for a total of £309,841.06 in fines and taxes.”

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