I've heard Peter Wheeler talking many times about being in the strange position of competing against, whilst also co-operating with the other clubs from the point of view that we need the Premiership to be viable as a whole, and that is clearly a noble position to take even though I am sure that given his corporate responsibilities he will hopefully tend to wards the former over the latter.
It seems that there are two main arguments for the cap – levelling competition and stability for the participants.
As I recall it wasn’t originally brought in to enforce a lowest common denominator levelling of competition (for that is what it can only be if set at a level that everyone can afford or get close to) – that part used to only be on the media-only accessible part of the GP website, although it's now become accepted as one of, if not the, main reason for the cap.
Yet the Football Premiership has grown beyond belief in terms of money, exposure, fan base and any other measure you can name whilst they've had the "dreadful" situation of a small number of rich clubs dominating for years. The top level of rugby was growing quite healthily even without the help of professional marketing when the top level (in terms of competition) consisted of Bath and Tigers plus debris.
The other reason is to stop clubs going out of business – let’s look at the history of the professional game. Frankly, whilst the insolvency of Richmond and London Scottish was sad it hasn't had any effect on the English game and others have stepped up to fill whatever gap they left. I wouldn’t pretend it was nice for their members of staff, but the players who were worth places soon found a new contract, and organisations stepped forward to fill any perceived gap in terms of the competing clubs. If my company is struggling the rest of the industry doesn’t voluntarily step back and let us have their talented employees at cut price!
At the moment what the cap does is to keep the clubs being run on the cheap in the race without any great incentive to get better. Let's be honest, a number of the teams out there have a business plan of finishing above twelfth place (the Travolta-Micawber approach - stay alive and hope something turns up) yet still managing to be competitive because others are held back. I can't see that as being good for the Premiership, particularly if everyone else is forced to stay at somewhere near their level.
The Tigers have the stated aim of being one of the best rugby clubs in the World. The noises coming from within the Tiger’s camp indicate that they have reached the point that they feel the Premiership may be starting to prevent that, other progressive clubs, albeit not the majority, will soon find their ambitions stymied in the same way. The rest ignore the ambitions of the elite at their peril.
Bookmark or share this story with:
Related Articles:
Quote:SK 88
Northampton, Bath, Leicester and Wasps have all won the HC, I can't think of a fifth. Since 2000 it is only Northampton (2000), Leicester (2001&2002) and Wasps (2004&2007).
Which as you will notice is in fact two in the last eight years. Compared to 5 in 7 years (including a year we weren't in the compotition) from 98 to 2004.
This is the longest time England has ever gone without a Heinekin Cup win, and I think the salary cap has to bear the brunt of the blame.
Quote:Rich W
Agreed SK88. The real question is though - is that a reasonable price to pay for a regulatory regime intended to save clubs from folly and incompetence of their own making?

Quote:So the French clubs only started winning after our salary cap started being significantly lower than their salaries?
Quote:tjs10
The way that GP funds are distributed by PRL (and the way they will continue to be distributed) does not reward success. It rewards existence.
Unlike in the football Premiership, there is very little direct financial reward for winning trophies. Most of the money is distributed pretty evenly across all clubs. The winners of the GP receive little more than the relegated club for example.
We are at or near stadium capacity and, while more hostility income could obviously provide a revenue increase, I don't think it would be able to offer significant profit increase to fund an additiional £2m pa to spend on player salaries.
Quote:Rich W
It's convenient (lazy) to make this about us vs the French. But the fact is we can't compete financially withe the Munster-Leinster axis or with the WRU chequebook backed Hairsprays.
And since an English team last won the HEC the wiiners have been French and Irish - money talks. Sad maybe, but true.
Quote:Rich W
LH - you're as prone to cherry picking bits of people's arguments as Tim.
The point, I repeat, is that because of the central contracting of Irish players along with IRFU subsidy of some overseas imports the effective wage bill of those two provinces massively exceeds ours. The O's were included because of their spending power and its obvious impact on the market. But if you feel that misinterpretting other people's posts strengthens your argument - fine. In fact I'll make it easy for you - you're worried that Leeds will get left behind so you think it best to hold everyone else back - fine - not an unreasonable position. But at least be honest.
I'm bored with arguing with closed minds to be frank.












Quote:SK 88
So what?
They would have been replaced by others who would have kept their house in order.
Quote:johns
Spot on Honest Tone.
You let them go bust, rthee are others who would like to join the club.
May be 12 clubs are to much for professional rugby to support at this stage.
The Soccer clubs never seem to let a club go bust these days, but as in any business the failure of one is an opportunity for a new business to start up with new ideas, this is how the world goes round, interfere at your peril.



Quote:johns
Spot on Honest Tone.
You let them go bust, rthee are others who would like to join the club.
May be 12 clubs are to much for professional rugby to support at this stage.
The Soccer clubs never seem to let a club go bust these days, but as in any business the failure of one is an opportunity for a new business to start up with new ideas, this is how the world goes round, interfere at your peril.