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Premiership Rugby's investigation into Saracens' salary cap explained

Alex Lewington of Saracens breaks through
Image: Premiership Rugby have opened an investigation against Saracens

Premiership Rugby have launched an investigation into reports that Saracens are failing to comply with salary cap laws, but what are they exactly being accused of?

On Monday morning, the league's governing body announced they would be looking into whether the reigning champions are complying with Salary Cap Framework rules.

Here, Sky Sports News' James Cole explains all you need to know about the investigation...

Why are Premiership Rugby investigating Saracens?

The Daily Mail has revealed that club owner, Nigel Wray, is involved in businesses with four senior players. They are captain Owen Farrell and three other senior members of the squad - Billy Vunipola, Mako Vunipola and Richard Wigglesworth.

Accounts also show that Wray - a property entrepreneur - has co-owned houses with former Saracens players.

Saracens owner Nigel Wray
Image: Saracens owner Nigel Wray is being accused of being involved in businesses with four senior players

Are Saracens in breach of Premiership rugby's salary cap?

Not if they have declared all remuneration to Premiership Rugby. Under the salary cap regulations, all 'contracts' or 'arrangements' between a club and a player must be declared.

The regulations also state that 'any accommodation or holiday cost' is included in the salary of a player.

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How does the salary cap work?

Premiership Rugby clubs can spend no more than £7m overall on their senior squad.

Clubs are allowed two 'marquee' players whose salaries don't count towards the cap. On top of that, they get 'Homegrown senior player credits' (£600k maximum) for players who have come through the academy.

Clubs also receive further credits for players unavailable on England duty (up to £80k per player). Saracens do well in both categories.

 during the Guinness Six Nations match between Wales and England at Principality Stadium on February 23, 2019 in Cardiff, Wales.
Image: One of the four players suspected to be involved in businesses with Gray is Saracens captain and England star Owen Farrell

What do Saracens say?

"The club readily complies with Premiership Rugby salary regulations and information relating to remuneration is declared to the salary cap manager.

"Although co-investment partnerships between owners and players are not a prerequisite of the salary regulations, we disclose these transactions to Premiership Rugby and will continue to do so.

"Currently, 57% of the men's squad is comprised of homegrown talent - the highest in the Premiership. These players not only produce results on the pitch, they help entitle the club to £1.2m in credits above the baseline salary cap from the RFU and Premiership Rugby.

"This is a direct result of our significant investment in the Saracens Academy which nurtures and develops Saracens and England players of the future."

What do Premiership Rugby say?

"We have received all the relevant information from Sportsmail and will consider it in detail to determine if any action needs to be taken.

"Each season, all our clubs are subject to a detailed independent audit of all player salaries and benefits to ensure they are fully declared and comply with the salary cap framework set by our board. We can't comment on the specifics of the Sportsmail story but will look closely at any information provided."

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