Premiership Rugby clubs agree to cut salary cap

09 Jun 2020

By: Sport Industry Group

Premiership Rugby clubs have unanimously agreed to cut their salary cap by £1.4 million.

The league says the salary cap will be reduced in the 2021/22 season and will return to its current level before the start of the 2024/25 season at the latest.

The move sees the cap cut from £6.4 million - which could reach £7 million with ‘credits’ - to £5 million, which can be topped up to total of £6 million through credits. Credits are earned through the use of home-grown players and injury dispensation.

In effect from the 2021/22 season, the plan is aimed at helping clubs with losses incurred as a result of the coronavirus pandemic.

It has also been reported that the cap could return to the current level of £6.4m plus £600,000 academy credits in future.

Changes are also said to have been agreed to the marquee player rule, where the salaries of two players do not count towards the cap for the next two seasons. However, this could be cut to one from the 2022/23 season.

Darren Childs, CEO, Premiership Rugby, said, “Our clubs have taken these difficult steps as part of a range of measures to weather the significant financial impact of the COVID-19 pandemic.

“The ambition for the future of the game remains unchanged, and as we look beyond the immediate crisis we know that Premiership Rugby has huge potential to bring people together and will grow as a sport with the players, clubs and all stakeholders sharing in that future.”