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Premiership Rugby clubs unanimously vote to temporarily reduce the salary cap

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Saracens V Northampton Saintsgallagher Premiership
PREMIERSHIP RUGBY have confirmed that all clubs have voted unanimously to temporarily reduce the salary cap, following the significant financial impact of the Covid-19 pandemic.

For clarity, the vote refers only to the salary cap changes from 2021-22 until 2023-2024, and not to any individual salary or contract.

The Salary Cap will be reduced in the 2021-22 season and will return to the current level before the start of the 2024-25 season at the latest.

Darren Childs, Premiership Rugby Chief Executive 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.”

Saracens Chairman, Neil Golding, commented.

“Saracens are fully supportive of the salary cap measures agreed with all Premiership Rugby members, as a sensible approach to the devastating impact of Covid 19.

“Saracens are fully supportive of the salary cap measures" Neil Golding

It’s particularly encouraging for us to see an increased focus and investment in the development of young players through our Academy systems. As an organisation the development of young English qualified players is fundamental to our strategy. We are proud of the players we have developed and we are pleased that these new proposals include maintaining the academy salary ceiling and the option to increase the upper limit for academy players.

Saracens will incorporate the new measures as part of our internal planning and governance procedures.”

At a meeting of the Premiership Rugby clubs on Monday 8 June it was decided:

From 2021-22:

  • The senior ceiling will be £5m (down from £6.4m), and it will continue to be linked to the central growth of Premiership Rugby.
  • Home-grown player credits will be retained up to £600,000.
  • International and EPS player credits will be retained but limited to a maximum of £400,000.
  • Season-long loans salary cap exemption will be removed.
  • The academy ceiling will remain at £100,000 (this is for non-home grown academy players) but the upper salary limit for an academy player will increase from £30,000 to £50,000. Homegrown academy players do not get counted in the £100,000, boosting the clubs' ability to support young English qualified talent.
    For any existing contracts that continue into the 2021-22 salary year, and beyond, their cap cost will be counted at 75% of their overall actual value, to sensibly manage the transition to new cap levels.

From 2022-23

  • Excluded players will reduce to one player, except for where a club has a current contract in place for two excluded players. In that scenario, both players may remain as excluded players until the first of their current contracts expire.
  • The decision to reduce from two excluded players to one is based on balancing financial sustainability while still attracting the best talent from around the world to the league.

From 2024-25

  • The senior ceiling will return to a minimum of £6.4m.

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