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Premiership Rugby statement: Leicester salary cap investigation

(Photo by Harry Murphy/Sportsfile via Getty Images)

Premiership Rugby have issued a Tuesday lunchtime statement confirming their salary cap investigation into Leicester Tigers is over and that the club must pay £309,841.06 in fines and taxes – but it has 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.

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Rogers has now published his findings in a statement issued by Premiership Rugby. It read: “Premiership Rugby can confirm that it has concluded its investigation into Leicester Tigers’ salary cap compliance for the seasons 2016/17 to 2020/21. The investigation was initiated by Premiership Rugby’s salary cap director Andrew Rogers, using the strengthened powers introduced following a review of the regulations in 2020.

“In summary, the investigation found that Leicester Tigers, and one or more club commercial partners, entered into arrangements whereby a third-party company made payments to the image rights companies of Leicester Tigers players. These payments should have been declared to the salary cap director as salary, but they were not disclosed.

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“In each of the four seasons from 2016/17 to 2019/20, Leicester Tigers exceeded the salary cap by an amount below the ‘overrun’ limit above which a formal charge may be brought for an alleged breach of the regulations.

“The club has accepted the findings, which means there will be no further disciplinary process or appeal. The level of fine imposed in these circumstances, known as an overrun tax, is calculated by a formula set out in the regulations.

“As a result of the previously undisclosed payments now being counted as salary, the salary cap director has determined that Leicester Tigers exceeded the salary cap by the following amounts:
2016/17: £147,750.00 (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.

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Consequently, the breakdown of the overrun tax on Leicester Tigers is:
2016/17: £122,750.00;
2017/18: £64,718.05;
2018/19: £30,886.69;
2019/20: £73,586.32.

“In addition, Leicester Tigers have been fined £17,900 for failing to disclose information about the above arrangements in the five seasons from 2016/17 to 2020/2021 inclusive. In respect of 2020/21 Tigers were fined for non-disclosure but there was no overrun of the salary cap. This makes a total of £309,841.06 in fines and taxes.”

Rogers said: “The review of salary cap regulations provided stronger powers to monitor spending and investigate possible breaches of the cap in past seasons. Leicester Tigers have cooperated with my investigation and accepted the findings, which allows us to apply the sanctions detailed in the regulations.

“While we are satisfied that the arrangements which resulted in the overspend have been brought to an end, we will continue to assess all spending as part of our ongoing monitoring process at every club.”

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J
JW 2 hours ago
Does South Africa have a future in European competition?

I rated Lowe well enough to be an AB. Remember we were picking the likes of George Bridge above such players so theres no disputing a lot of bad decisions have been made by those last two coaches. Does a team like the ABs need a finicky winger who you have to adapt and change a lot of your style with to get benefit from? No, not really. But he still would have been a basic improvement on players like even Savea at the tail of his career, Bridge, and could even have converted into the answer of replacing Beauden at the back. Instead we persisted with NMS, Naholo, Havili, Reece, all players we would have cared even less about losing and all because Rieko had Lowe's number 11 jersey nailed down.


He was of course only 23 when he decided to leave, it was back in the beggining of the period they had started retaining players (from 2018 onwards I think, they came out saying theyre going to be more aggressive at some point). So he might, all of them, only just missed out.


The main point that Ed made is that situations like Lowe's, Aki's, JGP's, aren't going to happen in future. That's a bit of a "NZ" only problem, because those players need to reach such a high standard to be chosen by the All Blacks, were as a country like Ireland wants them a lot earlier like that. This is basically the 'ready in 3 years' concept Ireland relied on, versus the '5 years and they've left' concept' were that player is now ready to be chosen by the All Blacks (given a contract to play Super, ala SBW, and hopefully Manu).


The 'mercenary' thing that will take longer to expire, and which I was referring to, is the grandparents rule. The new kids coming through now aren't going to have as many gp born overseas, so the amount of players that can leave with a prospect of International rugby offer are going to drop dramatically at some point. All these kiwi fellas playing for a PI, is going to stop sadly.


The new era problem that will replace those old concerns is now French and Japanese clubs (doing the same as NRL teams have done for decades by) picking kids out of school. The problem here is not so much a national identity one, than it is a farm system where 9 in 10 players are left with nothing. A stunted education and no support in a foreign country (well they'll get kicked out of those countries were they don't in Australia).


It's the same sort of situation were NZ would be the big guy, but there weren't many downsides with it. The only one I can think was brought up but a poster on this site, I can't recall who it was, but he seemed to know a lot of kids coming from the Islands weren't really given the capability to fly back home during school xms holidays etc. That is probably something that should be fixed by the union. Otherwise getting someone like Fakatava over here for his last year of school definitely results in NZ being able to pick the cherries off the top but it also allows that player to develop and be able to represent Tonga and under age and possibly even later in his career. Where as a kid being taken from NZ is arguably going to be worse off in every respect other than perhaps money. Not going to develop as a person, not going to develop as a player as much, so I have a lotof sympathy for NZs case that I don't include them in that group but I certainly see where you're coming from and it encourages other countries to think they can do the same while not realising they're making a much worse experience/situation.

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