Prem clubs reach ‘confidential settlements’

Date published: October 22 2015

Premiership Rugby have confirmed that certain clubs in breach of last season's salary caps have been dealt with through 'confidential settlements'.

The news comes after the governing body announced that the base salary cap for all Premiership clubs will rise in 2016/17 to £6.5 million, and to £7 million for 2017/18.

Speculation that clubs have breached the salary cap in the past has been more or less confirmed by the governing body, who also stressed the need for confidentiality.

"Over the last few months, there has been speculation, much of it significantly inaccurate, concerning investigations into clubs," read a statement.

"During that time, Premiership Rugby has not commented in view of the confidentiality obligations in the regulations.
"It is important to clarify that investigations into potential issues concerning clubs' annual spend happen regularly as part of the Certification and annual audit of each club.

"The Salary Cap Manager addresses these issues with the clubs as part of the ongoing work to support the operational management of the system. Confidentiality, therefore, remains appropriate and necessary.
"Premiership Rugby can confirm that certain issues were pursued last season with some clubs relating to access to information and to commercial contracts where there were differences of opinion as to the correct inclusion or not in the Salary Cap spend.

"The issues were not straightforward and were subject to differing legal opinion and consequent risk as to any judgment on the correct interpretation.

"Premiership Rugby and the clubs have now resolved the issues identified and have entered into appropriate confidential settlements. 
"With the clubs having reached agreement on the level, formulation and management of the Salary Framework through until 2018, Premiership Rugby believes this will play an important role in underpinning the objectives of financial sustainability for all Clubs, a competitive and unpredictable Aviva Premiership competition and European success."