An exclusive report from the Telegraph, written by Kate Rowan and Daniel Schofield, has revealed that a huge change could be coming to the Gallagher Premiership salary cap system.
Currently, all 12 clubs must stick to a £7million cap with two marquee players whose salaries are excluded from the limit. That is how someone like Bristol Bears can afford to pay fullback Charles Piutau close to £1m per season.
Exclusive: Marquee player allowance outside of salary cap set to be scrapped | @KateLouiseRowan reportshttps://t.co/wqt2agemZ1
— Telegraph Rugby (@TelegraphRugby) May 9, 2020
The report suggests that dumping the marquee players, which was introduced back in 2012, would be an effective way to try and slow down inflation as wages continue to spiral out of control.
With all but one club, Exeter Chiefs, making a loss last year, it makes sense why the Premiership would be searching for methods to prevent overspending by clubs.
“We are looking at the costs of the business and by far the biggest cost of the business is the players’ salaries,” revealed an anonymous executive to The Telegraph.
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“From our point of view, the feeling is that marquee players have driven up players’ salaries to the point that it has become unsustainable.
“If you look at what has driven the salaries up over the last couple of years if you are playing next to a guy who is earning twice as much as you then inevitably when you come to renew contract then you are going to say ‘I might not get what he’s on but I certainly want more than I am currently on’.”
The Rugby salary caps of each country ranked – here’s who has the most money to spend on players
England’s top clubs have been warned that the soaring inflation in players’ salaries is no longer sustainable, with the Rugby Football Union predicting a significant downturn in funding to the Premiership because of the tough economic climate.
Here’s how England’s Gallagher Premiership compares to other major countries around the world.
Rugby salary caps:
6. Super Rugby salary cap = £3.2 million
The overall Super Rugby salary cap has been adjusted to a total of Aus$5.5million (US$4.3 million), with the average player receiving Aus £125,000 in 2018. Reports said this was a rise of about 10 percent.Embed from Getty Images
5. Pro14 (Scotland) = £4.2 million (estimated)
Although there is no official salary cap in Scotland, Glasgow Warriors are estimated to spend £4.2 million on players while Edinburgh spends £3.8 million.Embed from Getty Images