Andy Goode: Premiership salary cap must be slashed
Coronavirus has laid bare just how fragile rugby’s finances are and the Premiership’s salary cap is going to have to be reduced as a result.
It’s an unprecedented situation and talks of pay cuts and furloughing will of course help some clubs stay afloat in the short term but it’s become apparent that the financial equation just doesn’t add up and the current level of spending on salaries isn’t sustainable.
It feels bad saying it because players haven’t done anything wrong and I’m all for players earning as much as possible but only if the game is prospering and financial sustainability is assured. That simply isn’t the case at the moment.
Whether it was as a result of projected commercial income that hasn’t materialised or perhaps even partially boosted by the hype around hosting the World Cup, the Premiership salary cap shot up from £5.1 million in 2015/16 to £7 million a couple of years later.
I think the cap has to be reduced back down to much nearer the level it was at five years ago now, to maybe £5.5 million, and players should also be playing fewer games for welfare reasons.
If you reduce the number of games in the season by cutting out the Premiership Cup, among other changes, clubs would be able to cut their squad sizes and some players’ pay cuts probably wouldn’t have to be as big as it may initially seem when you propose the overall figure being reduced by £1.5 million.
A couple of marquee players sit outside of that cap as well and there are obviously pages of fine print that come with it, as highlighted by the Saracens salary cap saga which almost seems like a lifetime ago now.
Saracens have driven some of the recent wage inflation through their breaches of the cap and other clubs have tried to keep pace in order to compete with their success but clubs clearly can’t thrive while spending as much as they currently do on wages.
Salaries have almost doubled over the past five years or so and clubs’ revenue hasn’t even come close to keeping pace with that. As a result, the Premiership clubs lost getting on for £50 million collectively in the last financial year we have all the numbers for.
Gloucester did report a £5.3 million pre-tax profit last week but that was because a lot of the £12.8 million CVC windfall was included on the balance sheet. They would’ve made a loss similar to the previous year if it hadn’t been.
The injection of cash from CVC was clearly much needed but I think some people feel like a better deal could’ve been achieved if the clubs weren’t so in need of funds and fast. Plus, those funds are intended to improve infrastructure and the like, not inflate wages further.
It should also be noted that the increase in the salary cap has squeezed out the middle guys really. There aren’t too many £100,000 players any more, most are either earning significantly more or are at the lower end of the spectrum.
I think if we reduce the number of games being played and therefore the number of players in each squad, there may be a bit less of a gulf between the top and bottom earners too and some players might even benefit from that.
From what you hear, a 25% pay cut may end up being imposed in the short term whether players like it or not and a legal challenge could follow at a later date but I think a more permanent change is coming as well.
How that is implemented will be fraught with problems because some players have several years to run on their current contracts so whether they can be renegotiated remains to be seen.
Alternatively, clubs might have to pay some players off and there be an amnesty where that doesn’t count against the cap in order to redress the financial imbalance.
As a player, I always took the biggest deal on the table and no part of me begrudges players earning whatever they’re offered but I just think unfortunately some may be forced to take cuts to ensure that clubs survive and we still have a professional sport in a few years.
A lot of players understandably aren’t happy at the prospect of accepting a 25% pay cut in the short term so they’re certainly not going to be happy if it becomes a reality in the longer term but if the clubs were spending 25% less on wages, there’s no doubt the game would be more financially sustainable.
We knew the current financial model at the top of the English game wasn’t sustainable anyway with clubs generally reliant on one benefactor, who could leave at any time, but this current global crisis has highlighted just how dire the situation is.
The last thing we want to see is some sort of wage war between players and clubs so hopefully that doesn’t materialise but the reality is that players have had it very good in recent years and I think a change is necessary and is on its way.
Comments on RugbyPass
Anna, You are right, we need to have patience whilst the others catch up to England and France. Also it is the PWR that has been the game changer for England. the RFU put money into that initially at the expense of the Red Roses. I was sceptical at first but it has paid off in spades.
1 Go to commentsI think Matt Proctor became a 1 test AB in the same fixture. Cameron is quality and has been great this season, can’t believe’s he only 27. Realistically how would he not be selected for ABs squad this year. Only Dmac is ahead of him as a specialist 10. With Jordan out, it will come down to where and when Beauden Barrett slots back in, and where they want to play Ruben Love. Cameron seems an absolute lock in for the wider squad though. Added benefit of TJ-Cameron-Jordie combination at 9, 10, 11 too.
1 Go to commentsFarcical, to what end would someone want to pay to keep this thing going.
1 Go to commentsHavili, our best 12 by a mile, will be in the squad, if he stays fit. JB is the most overrated AB in the last 50 years.
61 Go to commentsWe had during the week twilight footy, twilight cricket, tw golf plus there was the athletics club. Then the weekend was rugby 15s plus the net ball, really busy club scene back then but so much has changed and rugby has suffered. And it was all about changing lifestyles.
6 Go to commentsIn the 70s and 80s my club ran 5 Senior sides plus a Vets. Now it is 2 sides with an occasional 3rd team. Players have difficulty getting to training now, not sure why and the commitment is not there. It seems to me more a problem of people applying themselves and not expecting to turn up and play whenever they want to.
6 Go to commentsROG’s contract is until 2027. The conversation about a successor to Galthie after RWC 2027 may be starting now. We can infer that Galthie’s reign stops then. He is throwing the Irish Coaching Job angle in because he is Irish. The next Irish coach MUST be Leo Cullen. As well as being the best coach available, coaching the vast majority of Irish Internationals week in week out, he has shown incredible skill at recruiting the best coaching staff for the job in hand. That was a failing in France. Cullen is a shrewd guy and if there is a need for foreign coaches underneath him he won’t hesitate. Rightly so. Ireland does need to start to bring Irish coaches through. Not just at the professional level but we need to train coaches to man new pathways for developing kids from schools/clubs up through the divisions.
8 Go to commentsNo Islam says it must rule where it stands Thus it is to be deleted from this planet Earth
18 Go to commentsThis team probably does not beat the ABs sadly Not sure if BPA will be available given his signing for Force but has to enter consideration. Very strong possibility of getting schooled by the AB props. Advantage AB. Rodda/Skelton would be a tasty locking combination - would love to see how they get on. Advantage Wallabies. Backrow a risk of getting out hustled and outmuscled by ABs. Will be interesting to see if the Blues feast on the Reds this weekend the way they did the Brumbies we are in big trouble at the breakdown. Great energy, running and defence but goalkicking/general kicking/passing quality in the halves bothers me enormously. SA may have won the World Cup for a lot of the tournament without a recognised goalkicker but Pollard in the final made a difference IMO. Injuries and retirements leave AB stocks a bit lighter but still stronger. 12 and 13 ABs shade it (Barret > Paisami, Ione = Ikitau, arguably) Interesting clash of styles on the wings - Corey Toole running around Caleb Clark and Caleb running over the top of Toole. Reece vs Koro probably the reverse. Pretty even IMO. 15s Kelleway = Love See advantage to ABs man for man, but we are not obviously getting slaughtered anywhere which makes a nice change. Think talent wise we are pretty even and if our cohesion and teamwork is better than the ABs then its just about doable.
11 Go to commentsCompletely agree. More friday night games would be a hit. RFU to make sure every club has a floodlit pitch. Club opens again Saturday to welcome touch / tag. Minis and youths on Sunday
6 Go to comments1.97m and 105Kg? Proportionately, probably skinnier than me at 1.82 and 82kilos. He won’t survive against the big guys at that weight.
55 Go to commentsThe value he brought to the crusaders as an assistant was equal to what he got out of being there. He reflected not only on the team culture but also the credit he attributed to the rugby community. Such experience shouldn’t be overlooked.
8 Go to commentsGood luck Aussie
11 Go to commentssmith at 9 / mounga 10 / laumape 12 / fainganuku 14
61 Go to commentsBar the injuries, it’s pretty much their top team …
2 Go to commentsDon’t disagree with much of this but it appears you forgot Rodda and Beale, who started at the Force on the weekend.
11 Go to commentsExcept for the injured Zach Gallagher this would be Saders best forward pack for the season. Blackadder needs to stay at 7, for all of Christies tackling he is not dominant and offers very little else. McNicholfullback is maybe a good option, Fihaki not really upto it, there was a reason Burke played there last year. Maybe Havilli to 2nd five McLeod to wing. Need a strong winger on 1 side to compliment Reece
1 Go to commentsTo me TJ is clearly the best 9 in the competition right now but he's also a proven player off the bench, there's few playmaking players who can come off the bench as calm and settled as he is, Beauden can, TJ can and I doubt any of the scrumhalves in contention can, if they want to experiment with new 9s I want him on the bench ready to step in if they crumble under the pressure. The Boks put their best front row on the bench, I'd like to see us take a similar approach, the Hurricanes have been doing similar things with players like Kirifi.
61 Go to commentsROG has better chance to win a WC if he starts training and make himself eligible as a player. He won’t make the Ireland squad but I reckon he may get close with Namibia (needs to improve his Afrikaans) or Portugal. Both sides had 1000:1 odds to win the RWC in 2023 which is an improvement on ROG’s odds of winning a RWC as a coach. Unlike Top 14 teams, national teams can’t go shopping and buy the best players - you work with the available talent pool and turn them into world beaters.
8 Go to commentsthat backline nope that backline is terrible why would you have sevu Reece when he’s not even top 5 wingers in the comp why have Blackadder when there’s better players no Scott barret isn’t an automatic the guy is more of a liability than anything why have him there when you have samipeni who’s far far better
61 Go to comments