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Looks like we could be under the salary cap
Discussion started by Uttoxsarie , 20 March, 2020 09:24
Looks like we could be under the salary cap
Uttoxsarie 20 March, 2020 09:24

Re: Looks like we could be under the salary cap
maynas 20 March, 2020 10:06
Link not working and remember Telegraph is behind a pay wall. Summary?

Re: Looks like we could be under the salary cap
Uttoxsarie 20 March, 2020 16:27
Quote:
maynas
Link not working and remember Telegraph is behind a pay wall. Summary?
Sorry, I forgot that not everyone subscribes to the Telegraph. (Sm132)

Quote:-
Premiership clubs are preparing to ask players to take a 25 per cent paycut because of the financial effects of the coronavirus outbreak, Telegraph Sport has learned.

Both Gloucester and Sale Sharks have called staff meetings for Friday in which they will outline the radical measures and it is believed up to seven other clubs, including Harlequins, Leicester and Wasps, are prepared to follow suit. Docking any wages would constitute a breach of contract and so players would have to agree to the proposal.

It is understood the clubs will argue that if they do not enact radical measures then they may struggle to stay afloat. At present, the next four rounds of league matches have been suspended, although the chances of the Premiership resuming as scheduled on April 24 appear increasingly remote.

Premiership clubs can ill afford to lose many further matches. Lance Bradley, the Gloucester chief executive who held a meeting with the senior playing group yesterday, last week told Telegraph Sport that matchday revenues make up 25-30 per cent of the club’s income. Bradley also said the prospect of cancellations or behind-closed-doors games would have a “dramatic impact on our finances.”

More bluntly a Gloucester playing source was told with no revenue coming in “they are going to be f-----d pretty quickly”. That situation is replicated throughout the league, which lost a collective £50million in the last financial year. Telegraph Sport also understands that clubs’ central funding from Premiership Funding has been cut by a quarter this week, which may reflect the demand for players to have their wages docked by 25%.

However, many players are asking what happened to the £13.5 million each club received from CVC’s takeover of Premiership Rugby last year. An emergency call of the Rugby Players’ Association’s players board was held on Thursday. The players’ union will hold further talks today as further detail of the clubs’ demands comes to light.

Re: Looks like we could be under the salary cap
OhMaroItoje 20 March, 2020 16:29
It’s official

[www.saracens.com]

Re: Looks like we could be under the salary cap
Primavesi2 20 March, 2020 16:46
Good to see that lower paid staff are excluded but realistically if there is no rugby until next September, there are bound to be layoffs. Very sad.

Re: Looks like we could be under the salary cap
McSaracens 20 March, 2020 16:50
Desperately sad situation. All clubs are in dire straits.



“I believe it might have been said before, but there is something special happening at Saracens, and I want to be part of it.” - Nils Mordt

Re: Looks like we could be under the salary cap
Innings 21 March, 2020 09:57
Professional rugby is not financially resilient. With no income and no reserves, this is their first step to trying to preserve something viable for the future, and more will follow. The worries for the future are based on many factors, of which these seem to be the most significant:

This is not going to be resolved in weeks, perhaps not even this year.

Amateur rugby clubs are effectively having to abandon their income stream and physical assets, certainly until whenever the next new season can begin. Many will not have the resources to undertake the recovery process.

Can anyone be confident that the unpaid committees, tea-people, ground staff and others will return once they have got into the habit of not being there?

Playing numbers have been slowly declining for many years. How many current playing club members not return after all this?

How many little local sponsors of their club, a few hundred pounds here, loan of a car there, a hoarding at the ground, feel able to renew their sponsorships when they are struggling to save every penny to stay in business themselves?

It is difficult to strike the right balance between Panglossian sangfroid and Private Fraser's 'We're doomed I tell you, Doomed." Many sports administrators have been working on the principle that their sport is more important than working to avoid being opportunities for the disease to advance, and many still fondly think of some normality by the summer. The reality is that until an existing drug or combination of them works, a vaccine is created or the disease burns out, we face the present being the indefinite future. Professional rugby and other minority sports will either adapt to the changed reality far faster than they seem to think necessary, or cease to exist. Simultaneously, amateur rugby has to address the other issues of existing long-term decline. I don't suggest it cannot all happen, but sports administrators seem to be less able to look at the profound challenges other than through short-term perspective, when genuine strategic thinking is needed.

In the meantime, World Rugby has £200 million of reserves. If they aren't held for managing a crisis like this, affecting the game in every country, at every level, what are reserves for?



Innings

Points win matches: tries win hearts and minds.

Re: Looks like we could be under the salary cap
maynas 21 March, 2020 10:29
Be good to see PRL and RFU staff taking pay cuts too, but what odds?

Re: Looks like we could be under the salary cap
Surbiton Sarries 21 March, 2020 10:51
According to The Times, RFU office staff have been invited to take unpaid leave, reduce their hours or taka a sabbatical, while PRL have made staff cuts. And allegedly Faz's cut amounts to £16k a month

Re: Looks like we could be under the salary cap
maynas 21 March, 2020 14:24
I like the term “invited” , do you RSVP politely declining?

Re: Looks like we could be under the salary cap
samgibbo 21 March, 2020 18:44
Quote:
Surbiton Sarries
According to The Times, RFU office staff have been invited to take unpaid leave, reduce their hours or taka a sabbatical, while PRL have made staff cuts. And allegedly Faz's cut amounts to £16k a month

Which still means he’ll be paid over £500k on a pro rata basis. Somehow I think Faz will be fine but I do feel for those taking pay cuts who may have been struggling even before the outbreak took hold.

Re: Looks like we could be under the salary cap
myleftboot 22 March, 2020 13:46
Quote:
maynas
I like the term “invited” , do you RSVP politely declining?
my wife was presented with 3 options, 2 months unpaid in 8, voluntary redundancy, or a sabbatical. Pick one, no option 4


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