Leicester statement: Tigers respond to £300k salary cap punishment

Leicester Tigers have issued their response after the conclusion of the Premiership Rugby salary cap investigation resulted in the current league leaders having to pay £309,841.06 in fines and taxes – but Steve Borthwick’s side have avoided a points deduction.

It was late December when it emerged that the current Gallagher Premiership league leaders were being investigated by salary cap director Andrew Rogers over alleged issues surrounding seasons 2016/17 to 2020/21.

He has now published his findings, issuing a heavy financial penalty against the club for previously undisclosed payments whereby a third-party company made payments to the image rights companies of players.

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Leicester CEO Andrea Pinchen said: “The club has co-operated with Premiership Rugby throughout the period of the investigation into historic salary cap spending. We accept the decision and the acknowledgement that there was no over-run in the most recent season of the review.

“We are thankful this matter has been brought to a conclusion and pleased that we can now focus all of our energy and efforts on the future of the club.”

'I have worked in so many organisations where you are resigned to the fact that you are never really going to see the fruits of your labour, it will always be someone else'

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— RugbyPass (@RugbyPass) January 16, 2022

Premiership Rugby explained in their investigation statement: “As a result of the previously undisclosed payments now being counted as salary, salary cap director Rogers determined that the Tigers exceeded the salary cap by the following amounts:
2016/17: £147,750 (Senior salary cap £6,000,000; Overrun limit £325,000)
2017/18: £89,718.05 (Senior salary cap £6,400,000; Overrun limit £350,000)
2018/19: £55,886.69 (Senior salary cap £6,400,000; Overrun limit £350,000)
2019/20: £98,586.32 (Senior salary cap £6,400,000; Overrun limit £350,000)

“During the relevant period, the Salary Cap regulations stated that for the first £50,000 of Overrun, a club would pay a tax of £0.50 for every £1 of overspend. Beyond the first £50,000 and up to £200,000 of Overrun, the tax is £1 for every £1 of additional overspend.

“Consequently, the breakdown of the overrun tax on Leicester was:
2016/17: £122,750;
2017/18: £64,718.05;
2018/19: £30,886.69;
2019/20: £73,586.32.

“In addition, Leicester were fined £17,900 for failing to disclose information about the above arrangements in the five seasons from 2016/17 to 2020/21. This made for a total of £309,841.06 in fines and taxes.”