PREM salary cap back in the news as Bath reveal outcome of extra audit

Treble winners Bath Rugby have successfully completed a special salary cap audit, required by all Gallagher PREM-winning teams, to finally silence the critics who cast doubt on the club’s ability to assemble such a star-studded squad within the league’s financial regulations.

Rivals jealously looked on as players of the calibre of Springbok Thomas du Toit and Lions and Scotland star, Finn Russell, spearheaded Bath’s first league title win in 29 years, with a hard-fought 23-21 victory over Leicester in the PREM final at Allianz Stadium, Twickenham, last June. It completed a remarkable season, with the club having also won the PREM Rugby Cup and EPCR Challenge Cup in the same season.

Bath always insisted everything was above board, and the latest audit, which took a deep dive into the club’s financial affairs, confirms this.

The club put out a statement today, detailing the thoroughness of the audit. It said: “Bath Rugby can confirm it has completed its additional Salary Cap audit for the 2024/25 season. The club welcomes the conclusion of the thorough audit process which reaffirms its compliance with the league’s financial regulations.

“In addition to the annual audit, the Salary Regulations require the winning PREM Rugby team to undertake a further independent, forensic audit. Bath Rugby fully supported and complied with this process opening its books to the additional review.”

The audit required Bath to give full access to emails and mobile phone records (including WhatsApp messages) relating to members of Bath Rugby’s senior management and directors, comprising the Owner, Chief Executive, Finance Director, Head of Rugby, Head of Recruitment and Rugby Operations Manager.

Financial records were provided by 50% of Bath Rugby’s playing squad, including more than half of the club’s highest paid players. These records included: Two years’ worth of personal tax returns, and where applicable, image rights company tax returns, and personal bank statements, and where applicable, image rights company bank statements.

In addition, six of the club’s players were interviewed by the Salary Cap Director.

Bath Rugby’s Chief Executive, Tarquin McDonald, said: “We believe a strong and robustly enforced Salary Cap is a fundamental pillar of PREM Rugby and welcome the conclusion of the Extended Salary Cap audit which reaffirms our compliance with the Salary Regulations.

“We remain committed to resourcing the best possible squad, coaches and support staff, together with a top-level academy and a thriving player pathway across our region, while adhering to the highest standards of financial governance.”

The Salary Cap system was strengthened in 2020 following Saracens’ high-profile breach, which led to one of the league’s most decorated club’s being demoted to the Championship.