Premiership Rugby announce review of Salary Cap regulations

By Paul Morgan
19/12/19

Premiership Rugby have today announced a comprehensive Review of its Salary Cap regulations, led by former Government Minister Lord Myners CBE, to ensure a continued level playing field for all clubs in the future.

The purpose of the independently-led Review is to strengthen further the Salary Cap Regulations to ensure that they provide a world-leading system with extensive investigatory powers and appropriately robust sanctions. All Premiership clubs will have the opportunity to participate fully in the Review process and Lord Myners will also consult with stakeholders across the wider game.

Darren Childs, Premiership Rugby’s Chief Executive, said: “The success of Premiership Rugby is based on a group of fiercely competitive clubs who agree to play by the same set of rules on and off the pitch. The Salary Cap has been fundamental to promoting competition since its introduction and, while we continue to apply the existing regulations robustly, this Review is designed to ensure that we have a world-leading framework in place for the future.”

The Review follows on from the recent Saracens case in which a panel of independent legal experts - led by Lord Dyson - upheld all charges in full and gave a strong endorsement of the regulations. Their decision found the Salary Cap to be consistent with competition law, noting that it operated in a pro-competitive manner by promoting the objectives of ensuring the financial viability of Clubs, controlling inflationary pressures, providing a level playing field, ensuring a competitive league and enabling Clubs to compete in European competitions.

During the review, all aspects of the operation and management of the regulations will be considered, including opportunities to enhance the existing monitoring and investigatory powers, disclosure requirements, sanctions framework and resources allocated to support the Salary Cap regime. In addition, the review will examine international examples of best practice from sport and other regulatory sectors that could help to ensure that Premiership Rugby operates a world-class system.

It is intended that the review will result in a set of recommendations to be delivered in the second quarter of 2020 for proposed implementation ahead of the 2020-21 Premiership Rugby season.

Alongside the Review, Premiership Rugby is in active dialogue with Saracens Rugby Club over additional measures to confirm its compliance for the 2019-20 season. PRL’s rigorous compliance procedures already in place under the Salary Cap Regulations require each club to make full submissions at the start and close of each season, together with ongoing obligations to work with the Salary Cap Manager.