Premiership Rugby statement: Leicester salary cap investigation
Premiership Rugby have issued a Tuesday lunchtime statement confirming their salary cap investigation into Leicester Tigers is over and that the club must pay £309,841.06 in fines and taxes – but it has avoided a points deduction. 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.
Rogers has now published his findings in a statement issued by Premiership Rugby. It read: “Premiership Rugby can confirm that it has concluded its investigation into Leicester Tigers’ salary cap compliance for the seasons 2016/17 to 2020/21. The investigation was initiated by Premiership Rugby’s salary cap director Andrew Rogers, using the strengthened powers introduced following a review of the regulations in 2020.
“In summary, the investigation found that Leicester Tigers, and one or more club commercial partners, entered into arrangements whereby a third-party company made payments to the image rights companies of Leicester Tigers players. These payments should have been declared to the salary cap director as salary, but they were not disclosed.
“In each of the four seasons from 2016/17 to 2019/20, Leicester Tigers exceeded the salary cap by an amount below the ‘overrun’ limit above which a formal charge may be brought for an alleged breach of the regulations.
“The club has accepted the findings, which means there will be no further disciplinary process or appeal. The level of fine imposed in these circumstances, known as an overrun tax, is calculated by a formula set out in the regulations.
'I have worked in so many organisations where you are resigned to the fact that you are never really going to see the fruits of your labour, it will always be someone else'
Ex-Tigers recruitment tzar @JanMcGinity talks to @heagneyl ??? #leicestertigers https://t.co/x0IZyGCLQ6
— RugbyPass (@RugbyPass) January 16, 2022
“As a result of the previously undisclosed payments now being counted as salary, the salary cap director has determined that Leicester Tigers exceeded the salary cap by the following amounts:
2016/17: £147,750.00 (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.
Consequently, the breakdown of the overrun tax on Leicester Tigers is:
2016/17: £122,750.00;
2017/18: £64,718.05;
2018/19: £30,886.69;
2019/20: £73,586.32.
“In addition, Leicester Tigers have been fined £17,900 for failing to disclose information about the above arrangements in the five seasons from 2016/17 to 2020/2021 inclusive. In respect of 2020/21 Tigers were fined for non-disclosure but there was no overrun of the salary cap. This makes a total of £309,841.06 in fines and taxes.”
Rogers said: “The review of salary cap regulations provided stronger powers to monitor spending and investigate possible breaches of the cap in past seasons. Leicester Tigers have cooperated with my investigation and accepted the findings, which allows us to apply the sanctions detailed in the regulations.
“While we are satisfied that the arrangements which resulted in the overspend have been brought to an end, we will continue to assess all spending as part of our ongoing monitoring process at every club.”
Comments on RugbyPass
Super rugby is struggling but that has little to do with sabbaticals. 1. Too many teams from Aust and NZ - should be 3 and 4 respectively, add in 2 from Japan, 1 possibly 2 from Argentina. 2. Inconsistent and poor refereeing, admittedly not restricted to Super rugby. Only one team was reffed at the breakdown in Reds v H’Landers match. Scrum penalty awarded in Canes v Drua when No 8 had the ball in the open with little defence nearby - ideal opportunity to play advantage. Coming back to Reds match - same scrum situation but ref played advantage - Landers made 10 yards and were penalised at the breakdown when the ref should have returned to scrum penalty. 3. Marketing is weak and losing ground to AFL and NRL. Playing 2 days compared with 4. 4. Scheduling is unattractive to family attendance. Have any franchises heard of Sundays 2pm?
7 Go to commentsAbsolutely..all they need is a chance in yhe playoffs and I bet all the other teams will be nervous…THEY KNOW HOW TO WIN IM THE PLAYOFFS..
2 Go to commentsI really hope he comes back and helps out with some coaching.
1 Go to commentsI 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.
9 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.
7 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.
9 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…??? 🤑🤑🤑
14 Go to commentsWow, that’s incredible. Great for rugby.
14 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?
5 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.
7 Go to comments