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Premiership Rugby have released a statement in which they have confirmed that Wasps have over run the salary cap, albeit by a modest amount.
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In a statement, the organisation said: “Premiership Rugby can today confirm that following the completion of the independent audit of Salary spend for the 2016-17 Season, it was established that Wasps had overrun their limit by £40,528.
“In accordance with the Regulations, at this level of excess the Club will pay 50p per £1, being £20,264.”
However they claim this was not a breach of regulations.
“This is not a breach of the Regulations and there is no suggestion it was deliberate,” said a Premiership Rugby spokesman. “A number of adjustments were identified by the independent auditors which resulted in the overrun. These have now been addressed.”
The current level of the Salary Cap for 2017-18 is £7m, plus two Excluded Players whose salaries sit outside the cap, enabling clubs to recruit and retain world class talent.
Within the £7 million Salary Cap ceiling, clubs are encouraged to develop home grown talent by accessing up to £600,000 of Home Grown Player Credits. Also, they can provide an unlimited education (academic or vocational) fund to their players, and can replace long-term injured players without impacting on their Salary Cap ceiling.
Injury Dispensations up to a maximum of £400,000 per season continue to be available to each Club, a new England Senior EPS or International Player Credit of up to £80,000 per player has been introduced to cover for player absence during international periods and there is a new overrun tax on any Salary spend of up to 5% over the Base level (5% being £350,000 in 2017-18).
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