Premiership Rugby clubs unanimously approve salary cap overhaul
Last Updated: 02/06/20 12:04pm
All 13 Premiership clubs have unanimously approved a sweeping overhaul of the league’s salary cap.
Last month, a review led by former government minister Lord Myners proposed 52 recommendations to overhaul the salary cap following a comprehensive review.
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The review followed last year's punishment of Saracens for breaches of the salary cap and subsequent failure to provide proof of their immediate compliance to auditors.
Saracens were docked 105 points, fined £5.36m, and relegated to the Championship, but there was no means for Premiership Rugby to strip them of silverware the club had accrued during the disputed period.
Lord Myners' recommended that Premiership Rugby clubs who breach the salary cap in future should face the punishment of having titles scrapped.
The review proposes greater flexibility for a disciplinary panel, also including the ability to demand stiffer fines, a return of prize money, and potential suspensions.
Lord Myners' recommendations for Premiership Rugby also included:
- Greater accountability for players with regard to the salary cap and sanctions if they are found to be in breach of it.
- The introduction of a "fit and proper" test for club owners.
- Greater accountability for club officials, as well as making them subject to potential sanctions.
- Increased investigatory powers and resources for the salary cap manager.
- The introduction of sanctions for clubs who do not comply with requests for salary-cap information "within a reasonable time frame".
Lord Myners stopped short of recommending the marquee rule - which allows two players to be paid an unlimited amount without affecting the salary cap - be removed but he did call for it to be reviewed.
Darren Childs, chief executive of Premiership Rugby, said: "I am immensely grateful to Lord Myners for his thorough, diligent and robust approach to conducting this review.
"It's a credit to our clubs that they have acted so quickly to support these recommendations and take the Premiership Rugby salary cap into a new era. We want to create the gold standard for delivering sporting integrity, financial viability and competitive balance.
"The next stage is for us to consult with our clubs, the Rugby Football Union (RFU) and the Rugby Players Association (RPA) and to enshrine these new regulations for the start of the 2020-21 season, which will be created for the long-term benefit of our sport."
Premiership clubs will now move to the next stage of developing these recommendations into detailed regulation. This stage will involve further consultation among clubs, the RFU and RPA.
These new regulations will then be presented to Premiership Rugby Board for approval.