Premiership clubs have unanimously agreed to reduce £7million salary cap and marquee player quota - reports
Premiership Rugby clubs have reportedly reacted to the financial crisis caused by the coronavirus pandemic stoppage of rugby in England by unanimously agreeing to cut their tournament’s salary cap by £1.4million for the 2021/22 season. There will also be a reduction in the number of marquee players sitting outside the cap in 2022/23.
The current salary cap for the top-flight league in England is £7m per club (£6.4m plus £600,000 academy credits), with the salaries of two marquee players sitting outside that cap.
However, it is now being reported that a meeting of clubs has resulted in action being taken to help everyone better live within their means during the financial crisis. The reduction in the cap won’t be permanent, with flexibility allowed for it to be restored to current levels once the game economically rejuvenates itself in the years ahead.
The decision to only bring in the reduction (a £5m ceiling plus £600,000 academy credits) for the 2021/22 season and not next season was due to most contracts already being signed for the 2020/21 campaign after clubs made preparations with a £7m ceiling.
It is also reported that alterations have been made to the marquee player dispensation. Rather than allow for two star players to sit outside the cap, this will be cut to one from season 2022/23 onwards. These reductions will spark fears of an exodus from the English top-flight, with high earners potentially tempted to follow the likes of George Kruis and Freddie Burns and take up deals in places like Japan.
The pinch is being felt at Welford Road https://t.co/g5cfrcpMUJ
— RugbyPass (@RugbyPass) June 4, 2020
Gallagher Premiership clubs convinced their squads to take a 25 per cent pay cut when the pandemic first struck in March and there are now predictions that this reduction will also be made permanent. Speaking on BT Sport last month, Lawrence Dallaglio said: “The reality of the Covid crisis is that the salary cap is going to come down, there is no doubt about that. The game, the sport of rugby, particularly at the highest level, has been living way beyond its means.
“What we have seen since the introduction of the Covid crisis is a 25 per cent reduction in salaries which all the clubs have agreed. Some clubs, I won’t name them, were pushing for a 50 per cent reduction in these salaries. The new normal for players will be that their salaries won’t be going back up again. Those reductions are here to stay for the foreseeable future. The reality is the game is starting to recognise that it has to live within its means.”
“None of those clubs have made a profit in the last few years (except Exeter). Just to give you some idea, five years ago about five players in the Premiership were earning a salary of £300,000 or more. In the five years since then, it’s somewhere around about 100 players are earning that sort of level.”
Lord Myners’ recent salary cap report, which included 52 recommendations that have been adopted by the Premiership clubs, highlighted how the business of rugby just doesn’t make ends meet. The report outlined that Companies House recorded a staggering £88.7million collective loss among the 13 stakeholder clubs in the years ending 2017 and 2018. Only Exeter turned a profit, whereas others such as Wasps lost in excess of £14m.
Comments on RugbyPass
I think we are all just hoping that the Olympic 7s doesn’t suffer the same sad fate as the last RWC with the officials ruining the spectacle.
1 Go to commentsPersonally, I’ve lost the will to even be bothered about the RFU, the structure, the participants. It’s all a sham. I now simply enjoy getting a group of friends together to go and watch a few games a year in different locations (including Europe, the championship, etc). I feel extremely sorry for the real fans of these clubs who are constantly ignored by the RFU and other administrators. I feel especially sorry for the fans of clubs in the Championship who have had considerable central funding stripped away and are then expected to just take whatever the RFU put to them. Its all a sham, especially if the failed clubs are allowed to return.
8 Go to commentsI’m guessing Carl Hayman would have preferred to have stayed in NZ with benefit of hindsight. Up north there is the expectation to play twice as many games with far less ‘player management’ protocols that Paul is now criticising. Less playing through concussions means longer, healthier, careers. Carter used as the eg here by Paul, his sabbatical allowed him to play until age 37. OK its not an exact science but there is far more expectations on players who sign for Top 14 or Engl Prem clubs to get value for the huge salaries. NZR get alot wrong but keeping their best players in NZ rugby is not one of them. SA clubs are virtually devoid of their top players now, no thanks. They cant threaten the big teams in the Champions Cup, the squads have little depth. Cant see Canes/Chiefs struggling. Super has been great this year, fantastic high skill matches. Drua a fantastic addition and Jaguares will add another quality team eventually. Aus teams performing strongly and no doubt will benefit with the incentive of a Lions tour and a home RWC. Let Jordie enjoy his time with Leinster, it will allow the opportunity for another player to emerge at Canes in his absence.
4 Go to commentsLove that man, his way to despise angry little men is so funny ! 😂
4 Go to comments“South African franchises would be powerhouses if we had all our overseas based players back in situ. We would have the same unbeatable aura the Toulouses, Leinsters or Saracens of this world have had over the last decade or so.” Proof that Jake white does not understand the economics of the game in SA. Players earning abroad are not going to simply come back and represent the bulls. But they might if they have a springbok contract.
22 Go to commentsA lot of fans just joined in for the fun of it! We all admire O'Gara and what he has done for La Rochelle
4 Go to commentsThe RFU will find a way to mess this up as usual. My bet is there will be no promotion into the the Premiership, only relegation into National League One. Hopefully they won’t parachute failed clubs into the league at the expense of clubs who have battled for promotion.
8 Go to commentsWell that’s the contracts for RG and Jordie bought and paid for. Now, what are the chances we can persuade Antoine to hop over with all the extra dosh we’ll have from living at the Aviva & Croke next season…??? 🤑🤑🤑
13 Go to commentsWow, that’s incredible. Great for rugby.
13 Go to commentsYou probably read that parling is going to coach the wallaby lineout but if not before now you have.
14 Go to commentsIf someone like Leo Cullen was in O’Gara’s place I don’t hear Boo-ing. It’s not just that La Rochelle has hurt Leinster and O’Gara is their Irish boss. It’s the needle that he brings and the pantomime activity before the game around pretending that Munster were supporting LaRochelle just because O’Gara is from Cork. That’s dividing Irish provinces just to get an advantage for his French Team. He can F*ck right off with that. BOOOOO! (but not while someone is lying injured)
4 Go to commentsDid the highlanders party too hard before the game? They were the pits.
1 Go to commentsWhat a player! Not long until he’s in the England side, surely?
2 Go to commentsHe seems to have the same aura as Marcus Smith - by which I mean he’s consistently judged as if he’s several years younger than he actually is. Mngomezulu has played 24 times for the Stormers. When Pollard was his age he had played 24 times for South Africa! He has more time to develop, but he has also had time to do some developing already, and he hasn’t demonstrated nearly as much talent in that time as one would expect. If he is a generational talent, then it must be a pretty poor generation.
6 Go to commentsThe greatest Springbok coach of all time is entirely on the money. Rassie and Jacques have given the south african public a great few years, but the success of the springbok selection policy will need to be judged in light of what comes next. The poor condition that the provincial system is currently in doesn’t bode well for the next few years of international rugby, and the insane 2026 schedule that the Boks have lined up could also really harm both provincial and international consistency.
22 Go to commentsJake White is a brilliant coach and a master in the press. This is another masterclass in media relations and PR but its also a very narrow view with arguments that dont always hold water. White wants his team to win, he wants the best players in SA and wants his team competitive. You however have to face up to the reality of a poor exchange rate and big clubs with big budgets. SA Rugby cant compete and unless it can find more money SA players will keep leaving regardless of Springbok eligibility and this happened in 2015 - 2017. Also rugby is not cricket. Cricket has 3 formats and T20 cricket is where the money is at. When it comes to club vs country the IPL is king but that wont happen because the international calendar does not clash with the club calendar in rugby. So the argument about rugby going down the same path as cricket is really a non-starter
22 Go to commentsNZ rugby seem not to have learnt anything from professional rugby. Super rugby was dying and SA left before they died with the competition. SA rugby did a u turn on their approach to international players playing overseas and such players are now selected for Bok teams. As much as each country would love to retain their players playing in local competitions, this is the way the world is evolving my friends. Move with it or stay 20 years behind the times. One more thing. NZ rugby hierarchy think they are the big cheese. Take a more humble approach guys. You do not seem to have your players best interests at heart.
4 Go to commentsBeaches? In Cardiff? Where?
1 Go to commentsHe is right , the Crusaders will be a threat. Scott Barrett, ( particularly), Fergus Burke , Codie Taylor, ( from sabbatical) etc due back soon for the Crusaders. There are others like Zach Gallagher too. People can right the Crusaders off, Top 8 , here we come !!
1 Go to commentsWe will always struggle for money to match the other sides but the least the WRU can do is invest properly in Welsh rugby. Too much has been squandered on vanity projects like the hotel and roof walk amongst others which will never see a massive return. Hanging the 4 pro sides out to dry over the last decade is now coming back to bite the WRU financially as well as on the pitch. You reap what you sow.
1 Go to comments