Aviva Premiership
Salary cap raised as Premiership Rugby reaches agreements on previous breaches
ESPN Staff
October 22, 2015
© Tony Marshall/Getty Images

Premiership Rugby has announced it will raise its salary cap, while also revealing it has reached agreements with clubs suspected of breaching the cap in previous seasons.

The cap's base level is set to rise from £5.5 million for the current season, to £6.5m next year, and £7m in 2017-18. The figures include an increased 'home grown player credit' to encourage clubs to develop local talent through their academies.

In a statement, Premiership rugby insisted an increase in the salary cap was in the best interests of English rugby, particularly emphasising benefits to the national team, which exited the ongoing Rugby World Cup at the pool stage.

However, the news that Premiership Rugby has entered into confidential settlements with clubs suspected of breaching the salary cap could prove controversial.

In its statement, the organisation admitted that unnamed clubs had been pursued over "commercial contracts" around which there was a difference of opinion as to whether or not they were included in any salary cap spend.

"Over the last few months, there has been speculation, much of it significantly inaccurate, concerning investigations into clubs," the Premiership Rugby statement read. "During that time, Premiership Rugby has not commented in view of the confidentiality obligations in the regulations.

"It is important to clarify that investigations into potential issues concerning clubs' annual spend happen regularly as part of the certification and annual audit of each club. The salary cap manager addresses these issues with the clubs as part of the ongoing work to support the operational management of the system. Confidentiality, therefore, remains appropriate and necessary.

"Premiership Rugby can confirm that certain issues were pursued last season with some clubs relating to access to information and to commercial contracts where there were differences of opinion as to the correct inclusion or not in the salary cap spend.

"The issues were not straightforward and were subject to differing legal opinion and consequent risk as to any judgment on the correct interpretation. Premiership Rugby and the clubs have now resolved the issues identified and have entered into appropriate confidential settlements.

"With the Clubs having reached agreement on the level, formulation and management of the salary framework through until 2018, Premiership Rugby believes this will play an important role in underpinning the objectives of financial sustainability for all clubs, a competitive and unpredictable Aviva Premiership competition and European success."

Premiership Rugby chief executive Mark McCafferty added: "The clubs intend to ensure that the English game thrives at club and country level and that we achieve domestic, European and international success.

"The financial performance of Premiership Rugby and its clubs, including new commercial contracts with key partners, has helped facilitate plans for the further strengthening of playing squads, including the continued investment in the growth of English talent. This investment is intended to help drive the next phase of growth in English club and international rugby."

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