Premiership Rugby has confirmed today that the salary cap of the clubs will rise by £500,000, following the lucrative deal signed by broadcaster BT Sport and the renewal of the competition’s title sponsorship, with Aviva.
Fro mthe start of the 2014-15 season, clubs will now have a salary allocation of £5million. This includes £4.76million of salaries and £240,000 worth of ‘Academy Credits’ (in £30,000 credits) for players that have joined the club before their 18th birthday and graduated through the club’s Academy. For example, if a qualifying player earns £35,000, only £5,000 would be counted in the Club’s Salary Cap calculations. (One player from each club is still excluded from the cap with unlimited allowance – lucky for them!)
Speaking about the increase, Premiership Rugby Chief Executive Mark McCafferty said “The objective of the Salary Cap is to control inflationary pressures on clubs’ costs, and to provide a level playing field for clubs to ensure a competitive Aviva Premiership Rugby competition.
“These objectives are borne out in the financial success the league is now seeing with more clubs breaking even, and a healthy turnover of teams at the top of the league with three different winners in as many years. Aviva Premiership Rugby is the most competitive league in world rugby (highest number of games finishing in less than one score compared to any other rugby competition in the world).”
The full Premiership Rugby Salary Cap regulations can be found at www.premiershiprugby.com/salarycap.