SARRIES & THE SALARY CAP.. Q&A
Why does the sport have a salary cap and how big is it? PREMIERSHIP RUGBY, which manages the top league in the English club game, introduced the salary cap in 1999 with the twin aims of ensuring a level playing field and maintaining a competitive, growing and financially sustainable league, i.e. preventing the clubs from the pitfalls of overspending.
The cap was increased from £6.5million to £7m ahead of the 2017-18 season and will remain at this level until the end of the 2019-20 season.
The ceiling includes dispensation for academy and injured players and effectively raises the possible spend to around £9m.
What exactly have Saracens done?
PREMIERSHIP RUGBY responded to allegations of a salary cap breach by carrying out an investigation which took nine months.
An independent panel was then appointed in June by dispute service, Sport Resolutions, and yesterday it ruled that Saracens failed to disclose payments to players in each of the last three seasons.
It concluded that the club also exceeded the ceiling for payments to senior players in that time.
No details have been revealed on the size of the undisclosed payments or the recipients, but Premiership Rugby’s investigations were thought to have centred around owner Nigel Wray’s involvement in companies such as VunProp Ltd (Mako and Billy Vunipola), Faz Investments Ltd (Owen Farrell), Wiggy9 Ltd (Richard Wigglesworth) and MN Property Solutions Ltd (Maro Itoje). Wray has in the past argued that “investment is not salary” and likened the arrangements to his public support of coffee and brewing companies set up by players.
A statement issued when the allegations came to light said: “A professional playing career in rugby can be short. We have a responsibility to help our players fulfil their potential, not just on the pitch, but off it too.”
What now?
THE club have already said they intend to appeal against all the findings and the case is set to go to Sports Resolutions.
Saracens would have had 21 days to pay the fine in full, but the appeal means the sanctions will be suspended pending the outcome of their appeal.