The salary cap director determined that Leicester Tigers exceeded the salary cap by between £55k and £147k during four seasons from 2016-17 to 2020-21; there will be no further disciplinary process or appeal after Leicester Tigers accepted the outcome
Tuesday 15 March 2022 15:18, UK
Leicester Tigers have been fined £309,841.06 following the conclusion of a Premiership Rugby investigation into 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.
The investigation found that Leicester Tigers and one or more of the club's commercial partners had arrangements meaning that 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 and were not.
As a result of the previously undisclosed payments now being counted as salary, the salary cap director determined that Leicester Tigers exceeded the salary cap by between £55k and £147k during the four seasons.
In each of the seasons, Leicester Tigers exceeded the salary cap by an amount which was below the 'Overrun limit', meaning further formal charges will not be brought about.
The level of fine imposed in these circumstances is known as an 'Overrun Tax', and it is determined by a set formula within salary cap regulations.
In the 2020-21 season the Tigers were fined for non-disclosure of information but they had not overrun the salary cap.
"The review of salary cap regulations provided stronger powers to monitor spending and investigate possible breaches of the cap in past seasons," Andrew Rogers, salary cap director, said.
"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."
Following the conclusion of the investigation, Leicester Tigers released their own statement.
"The club has co-operated with Premiership Rugby throughout the period of the investigation into historic salary cap spending," Andrea Pinchen, Leicester Tigers chief executive officer, said.
"We accept the decision and the acknowledgment that there was no over-run in the most recent season of the review. We are thankful this matter has been brought to a conclusion and pleased that we can now focus all of our energy and efforts on the future of the club."
