Premiership Rugby release new Salary Cap regulations
By Mark Stevens
Premiership Rugby today publishes its Salary Cap Regulations for the 2020-21 and 2021-22 seasons.
The Regulations were unanimously agreed by the Premiership Rugby clubs and are now in force for the new season.
The new Regulations which you can read in full at www.premiershiprugby.com/salarycap contain a number of significant amendments following an independently-led review carried out by Lord Myners CBE, and commissioned by Premiership Rugby Chief Executive, Darren Childs.
Premiership Rugby Chief Executive Darren Childs said: “The strong endorsement of the salary cap in the November 2019, of the Independent Panel decision led by Lord Dyson, presented us with a perfect springboard to undertake an independently-led review into the Cap in order further strengthen the system.
“This review, carried out by Lord Myners included substantial public consultation, and game-wide interviews helping us to put in place the right set of powers, obligations and sanctions for the long-term benefit of the sport.
“I am immensely grateful to Lord Myners for his thorough, diligent and robust approach to conducting this review. The result is a world-leading system with extensive investigatory powers and appropriately robust sanctions. I would also like to express my thanks to the RPA for their open and collaborative approach towards the development of the new PRL Salary Cap Regulations, which now include a clear role of each Player in supporting the system, and also the RFU for their support in the process and engagement with Lord Myners.”
Lord Myners, CBE said: “I’m delighted to see that my recommendations from the Review I carried out earlier this year have been adopted by Premiership Rugby, and enshrined in their new Salary Cap Regulations. I thoroughly enjoyed working on this review and found the public consultation exercise enlightening. The Regulations had already been given a seal of approval by Lord Dyson so my review was about further strengthening and updating the regulations so they carried even more force for the new season and beyond. I now believe Premiership Rugby have a gold-standard framework which will inform not those in rugby but in the wider sporting world.”
The regulations published today ensure that all participants (clubs, club officials, players and agents) are accountable towards supporting the system. The regulations also enshrine sanctions that allow an independent panel to impose sanctions on any club which can include:
- Issue a points deduction of 50 points (entry level, discretion to increase or decrease)
- Issue severe financial penalties based on the size of the breach by a club
- Relegate the Club
- Remove titles and/or trophies
- Order return of prize money
The new Salary Cap Regulations which have been passed for the next two seasons were established through a set of principles, which stretch back more than 12 months:
- On 5 November 2019 the written decision by Lord Dyson and his panel was announced, in respect of Saracens’ breaches of the Salary Cap. This included a strong endorsement of the Regulations and found that the Salary Cap is consistent with competition law, noting that it operated in a pro-competitive manner by promoting the objectives.
- In December 2019, Premiership Rugby announced that Lord Myners would lead a comprehensive review of its Salary Regulations, led by former Government Minister Lord Myners CBE.
- The purpose of the independently-led review was to strengthen further the Salary Cap Regulations to ensure that they provide a world-leading system with extensive investigatory powers and appropriately robust sanctions.
- The review by Lord Myners included a public consultation, which received over 450 responses, and held meetings with each and every Premiership Club, the RPA and the RFU. All of whom submitted written feedback to his consultation survey.
- Following the publication of the report by Lord Myners in May 2020 it was announced that all 13 Premiership Rugby clubs supported the recommendations and had agreed to move to the next stage of developing these recommendations into detailed regulation.
- A further period of consultation was carried out in June 2020 by the Salary Cap Director to help in the drafting of the regulations.
- During this period there has been positive engagement with the Rugby Players’ Association in respect of the recommendations made by Lord Myners. Premiership Rugby has listened to their feedback and where possible made amendments to the draft Regulations, without departing from the overriding objectives of the recommendations.
- Some player related elements (e.g. player declaration and certification) will be phased in over the next 12 months, following a programme of education. However, the fundamentals of co-operation, honesty and accountability will apply from the start.
- Premiership Rugby intend to continue to work with the RPA on delivering the education sessions and also maintain our current approach of continued dialogue, consulting and reporting to the RPA on the Salary Cap.