Premiership Rugby publishes full report of the Myners salary cap review
Premiership Rugby have published the report of a comprehensive review of its salary cap regulations led by former Government Minister, Lord Myners CBE. The review was commissioned by Darren Childs, Premiership Rugby CEO, in December 2019, three months after his appointment and before the onset of the global Covid-19 pandemic.
The independent review was created with the objective of strengthening the regulations to create a world-leading salary cap system. The Myners Review follows on from the 2019 case in which an independent disciplinary panel upheld charges against Saracens for breaches of the salary cap (click here to read the full report).
The panel gave a strong endorsement of the regulations, finding the cap to be consistent with competition law and with the objectives of ensuring the financial viability of clubs and the league, controlling inflationary pressures, providing a level playing field, ensuring a competitive league and enabling clubs to compete in European competitions.
As part of the review, Lord Myners undertook an extensive public consultation so that anyone interested in professional club rugby, including supporters and players, could have their say on the future of the regulations.
Around 450 individuals and organisations responded to the consultation and Lord Myners held follow-up interviews with around 200 stakeholders to discuss their views in detail.
After considering all responses and examining examples of international best practice, Lord Myners has now developed a set of recommendations to improve how the salary cap operates. Among the changes proposed in the report, Lord Myners recommended:
- Greater flexibility for a disciplinary panel in relation to the range, and severity, of sanctions to ensure “the punishment fits the crime”, including the availability of sanctions such as suspensions and the removal of titles;
- The promotion of greater transparency, which will broaden and deepen visibility and scrutiny;
- Greater accountability for the board and the executives of the constituent clubs of Premiership Rugby;
- Greater accountability for the players and their agents;
- Increased reporting obligations on clubs;
- Stronger investigatory powers vested in the salary cap manager function and increased resource to perform this function;
- Making the regulations easier for clubs to understand, and for Premiership Rugby to administer.
Premiership Rugby will now work with member clubs and, where appropriate, other stakeholders to consider Lord Myners’ recommendations and finalise changes to the regulations.
Premiership Rugby boss Childs said: “Premiership Rugby established an independent review of the salary cap because we want to ensure that it provides a world-leading framework for the future. We are immensely grateful to Lord Myners for his thorough and insightful work during an extensive review process.
“We welcome the comprehensive set of recommendations put forward by Lord Myners following the review and we are pleased to publish his report so that everyone has an opportunity to consider his conclusions. In the next stage of this process, we will consult carefully with our clubs and other stakeholders as we finalise the new salary cap regulations for the long-term benefit of our sport.”
The full list of Lord Myners’ recommendations
1. Separation of Investigation, Decision to Prosecute and Enforcement
1.1 Enshrine a commitment by the clubs to respect the independence of the regulations.
1.2 The current discretion for clubs to choose to remove a director of a club pursuant to Regulation 14.7 should be removed.
1.3 Appoint an independent Cap Governance Monitor, with reserved powers in relation to the enforcement of the regulations.
2. Transparency
2.1 Announce the fact that a charge has been brought as soon as is reasonably practical and within seven days, with a brief summary of the substance and details, and proposed dates for a hearing.
2.2 Publish disciplinary decisions in full, with the redaction of confidential information or personal data.
2.3 Include details of all breaches and sanctions in a comprehensive SCM annual report, which is made public.
2.4 Publish guidance from the SCM regularly and make this publicly available.
2.5 Publish general information to share details about the operation of the cap and how it is achieving its objectives.
2.6 Publish any changes to the regulations, along with a rationale for how it is consistent with the five regulatory objectives.
3. Drafting of the Regulations and Definition of Salary
3.1 The regulations should remain as a set of detailed rules, backed up by principles.
3.2 All permitted payments to players should be automatically included within the salary cap, except for a few clearly communicated exceptions.
3.3 All exceptional items to be pre-approved by the SCM, otherwise they will be automatically treated as salary.
3.4 Prohibit payments which are subjective, extend beyond a player’s playing career or come from connected parties (including sponsorship by connected parties). Any prohibited payment should result in a sanction.
3.5 Broaden the current definition of connected party.
3.6 The SCM must approve all sponsorship arrangements in advance.
3.7 Tighten provisions around player loans to ensure they are bona fide.
3.8 Review provisions for exempt (marquee) players.
3.9 Remove the provision to deem a salary. Instead allow evidence of inaccurate salary declaration to be sufficient grounds for the SCM to launch an investigation.
3.10 Strengthen emphasis on clubs seeking clarification from the SCM in relation to any uncertainty in the interpretation of the regulations. Failure by a club to do so should be treated by the disciplinary panel as an aggravating factor leading to an increased sanction.
4. Club Accountability
4.1 The entry level for points sanctions should be increased.
4.2 The disciplinary panel should be entitled to take into account a wider range of factors and be given more guidance in relation to how those factors might influence their decision and their relative weighting.
4.3 Increase sanctions for failure to co-operate to a level equivalent to the sanctions available for breach of the salary cap.
4.4 Make additional sporting sanctions available, including relegation, suspension, stripping of titles and return of prize money.
4.5 Provide the disciplinary panel with the power to install an independent monitor for consistent and serious breaches.
4.6 Increase the sanctions available to the SCM for breach of lower level regulatory breaches, including the ability to deduct 2 points, with a right of appeal for clubs before an independent disciplinary panel.
5. Player Accountability
5.1 Tie players into the regulations so that they have accountability with respect to the salary cap.
5.2 The following player obligations should be adopted:
i) Player declaration
ii) Reporting arrangements for players
iii) Onus on player to clarify arrangements
iv) Co-operation.
5.3 Provide sanctions for players who are in breach of their obligations under the Regulations. These sanctions should include fines and sporting sanctions.
6. Accountability of Others
6.1 Introduce a fit and proper test for club owners to be available to the Disciplinary Panel in extreme circumstances.
6.2 Define a category of “club officials” to include directors and shareholders with more than a 10% holding and each club official should register with Premiership Rugby.
6.3 Require club officials to sign a declaration confirming that they have read the Regulations and agree to abide by them.
6.4 Require a board representative to sign a declaration of anticipated and actual compliance with the Regulations.
6.5 Provide that any club official who knew, or should have known, about the breach of the salary cap and who has signed a false declaration or certification or has unreasonably failed to co-operate with salary cap regulations is subject to sanctions including a ban from Premiership Rugby for up to two years (first offence) or up to lifetime (any subsequent offence).
6.6 Require clubs to nominate a salary cap officer who has duties to the SCM.
6.7 Provide obligations for agents in the regulations that mirror those of players in relation to disclosure and obligation to co-operate with the SCM.
6.8 Add a provision to the RFU’s agent declaration that includes an agreement by each agent to comply with the regulations.
6.9 Provide sanctions for breach of the regulations by an agent, including suspension of licence, forfeiture of any commission and/or fines.
7. Powers and Resource of the SCM and the auditors
7.1 Extend system to allow central access to each club’s salary cap spreadsheet at all times.
7.2 Require clubs to provide copies of documents such as new contracts to the SCM within 14 days.
7.3 Clarify the power of the SCM to attend clubs without notice and require them to provide him with finance reports and access to management accounts.
7.4 Allow the SCM to make requests to see players’ tax returns on a random basis.
7.5 Clarify that, as a part of their annual review, the auditors are able to obtain downloads of raw accounting data from each club’s system.
7.6 Enhance the powers available to the auditors in their annual audit to include mandatory interviews, sampling of tax returns and more extensive provision of information and documents by the clubs.
7.7 Introduce sanctions for clubs that do not comply with reasonable requests from auditors within a reasonable time frame.
7.8 The SCM should work with the Rugby Players Association and RFU to provide a programme of education for players and agents so that they understand their obligations under the regulations.
7.9 Change the title of the “SCM” to salary cap director”.
7.10 Appoint a deputy SCM to assist the SCD.
7.11 Appoint a full-time data analyst.
7.12 Make investigatory audits compulsory if the SCM has reasonable grounds to initiate.
7.13 Expand the scope of investigatory audits to include broader powers of search.
7.14 Provide sanctions for any club or individual who is found to have deleted evidence post the notification on an investigatory audit.
7.15 Introduce random mini investigatory audits for two clubs every year.
Comments on RugbyPass
Beaches? 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 commentsWhat do you get if you cross a doctor with a fish? A plastic sturgeon
14 Go to commentsWhat happened to feleti Kaitu’u? Hasnt played in a while right?
1 Go to commentsGregor I just can’t agree with you. You are trying to find something that just isn’t there. Jordie Barrett has signed until 2028. By the end of that he would have spent probably 11-12 years on Super Rugby and you say he can’t possibly have one season playing somewhere else. It is absurd. What about this scenario, the NZR play hard ball and he decides to leave and play overseas. How would that affect the competition. There seems to be an agenda by certain journalists to push certain agendas and don’t like it when it’s not to their liking. I fully support the NZR on this. Gregor needs to get a life.
2 Go to commentsHope he stays as believe he can do a great job.
1 Go to commentsMake what step up? Manie has a World Cup winner’s medal around his neck and changed the way the Springboks can play. He doesn’t have anything to prove to anyone. The win record of the Boks with him in the team is tremendous. Sacha can be wonderful and I hope he has a very succesful Bok career, but comparing him to Manie in terms of the next Bok flyhalf is very strange. Manie is the incumbent (not the next) and doing pretty incredibly.
1 Go to comments00 😍 U
1 Go to commentsSabbaticals have helped keep NZ’s very best talent in the country on long term deals - this fact has been left out of this article. Much like the articles calling to allow overseas players to be selected, yet can only name one player currently not signed to NZR who would be selected for the ABs. And in the entire history of NZ players leaving to play overseas, literally only 4 or 5 have left in their prime as current ABs. (Piatau, Evans, Hayman, Mo’unga,?) Yes Carter got an injury while playing in France 16 years ago, but he also got a tournament ending injury at the 2011 World Cup while taking mid-week practice kicks at goal. Maybe Jordie gets a season-ending injury while playing in Ireland, maybe he gets one next week against the Brumbies. NZR have many shortcomings, but keeping the very best players in the country and/or available for ABs selection is not one of them. Likewise for workload management - players missing 2 games out of 14 is hardly a big deal in the grand scheme of things. Again let’s use some facts - did it stop the Crusaders winning SR so many times consecutively when during any given week they would be missing 2 of their best players? The whole idea of the sabbatical is to reward your best players who are willing to sign very long term deals with some time to do whatever they want. They are not handed out willy-nilly, and at nowhere near the levels that would somehow devalue Super Rugby. In this particular example JB is locked in with NZR for what will probably (hopefully) be the best years of his career, hard to imagine him not sticking around for a couple more after for a Lions tour and one more world cup. He has the potential to become the most capped AB of all time. A much better outcome than him leaving NZ for a minimum of 3 years at the age of 27, unlikely to ever play for the ABs again, which would be the likely alternative.
2 Go to commentsJake White talks more sense than anything I've read in the last 5 years. Hope someone's listening.
10 Go to commentsThe Springboks tried going down the road of only picking home-based players and it was an unmitigated disaster in 2016 and 2017. Picking overseas-based players has been one of the main reason the Boks have done so well since 2018, not only because of the quality Rassie could call on, but because of the knowledge and experience those players brought into camp from England, France and Japan. With some of the big names playing abroad it also gave younger players in SA the chance to break through at franchise level. Would we have seen the emergence of a Ruan Nortje if RG and Lood were still at the Bulls? Not so sure. I understand why Jake would want to block players leaving since his job depends on good results but it’s an approach that would take Bok rugby back to the bad old days and no South African wants to see that.
10 Go to commentsExeter were thumped by 38 points. And they only had to hop on a train.
39 Go to commentsI am De Groot.
1 Go to commentsHad hoped you might write an article on this game, Nick. It’s a good one. Things have not gone as smoothly for ROG since beating Leinster last year at the Aviva in the CC final. LAR had the Top 14 Final won till Raymond Rhule missed a simple tackle on the excellent Ntamack, and Toulouse reaped the rewards of just staying in the fight till the death. Then the disruption of the RWC this season. LAR have not handled that well, but they were not alone, and we saw Pau heading the Top 14 table at one stage early season. I would think one of the reasons for the poor showing would have to be that the younger players coming through, and the more mature amongst the group outside the top 25/30, are not as strong as would be hoped for. I note that Romain Sazy retired at the end of last season. He had been with LAR since 2010, and was thus one of their foundation players when they were promoted to Top 14. Records show he ended up with 336 games played with LAR. That is some experience, some rock in the team. He has been replaced for the most part by Ultan Dillane. At 30, Dillane is not young, but given the chances, he may be a fair enough replacement for Sazy. But that won’be for more than a few years. I honestly know little of the pathways into the LAR setup from within France. I did read somewhere a couple of years ago that on the way up to Top 14, the club very successfully picked up players from the academies of other French teams who were not offered places by those teams. These guys were often great signings…can’t find the article right now, so can’t name any….but the Tadgh Beirne type players. So all in all, it will be interesting to see where the replacements for all the older players come from. Only Lleyd’s and Rhule from SA currently, both backs. So maybe a few SA forwards ?? By contrast, Leinster have a pretty clear line of good players coming through in the majority of positions. Props maybe a weak spot ? And they are very fleet footed and shrewd in appointing very good coaches. Or maybe it is also true that very good coaches do very well in the Leinster setup. So, Nick, I would fully concurr that “On the evidence of Saturday’s semi-final between the two clubs, the rebuild in the Bay of Biscay is going to take longer than it is on the east coast of Ireland”
11 Go to commentsWhat was the excuse for the other knockout blowouts then? Does the result not prove the Saints were just so much better? Wise call to put your eggs in one basket when you’ve got 2 comps simultaneously finishing.
39 Go to commentsReally hope Kuruvoli and his partner rock the Canes.
1 Go to commentsI wonder what impact Samson has had on their attack, as the team seems less prone to trundle it up the middle, take the tackle and then trundle it up again. I lost faith in the coach last year as the Rebelss looked like a 2nd/3rd rate South African team. I also disliked Gordon standing back, often ignored as the forward battle went on and on. Maybe its our Aussie way of not getting off our A***’s until the enemy is at the gate.
86 Go to commentsThanks for the write up. Great to see the Rebs winning, I am a little interested in how they will go against the remaining kiwi teams, I think they’ve only played Hurricanes and Highlanders but how great to see these players performing!! I also see Parling has a job beyond June 30! A good move by RA? Also how do you fix the Rebels previously scratchy defence?
86 Go to commentsbe smart - go black
14 Go to comments