Latest news:

Summary of Salary cap breaches with the players
Discussion started by centrethere , 24 January, 2020 08:14
Summary of Salary cap breaches with the players
centrethere 24 January, 2020 08:14
Just a summary for those who don't like long articles (edits from the Guardian which was from the Sky news who got a copy of the full report of PRL.
Saracens owner entered into ventures with players:
- £1.6m for a 30% stake in Itoje’s image rights company. However, Premiership Rugby said the shares were only worth £0.8m and that Saracens overpaid for Itoje’s image rights so the club could be under the salary cap by paying him less.
- Itoje was paid a lump sum for 3 years of £30,000, £30,000 and £35,000 by a company involving the chairman’s daughter, Lucy Wray, that did the hospitality at Allianz Park. There was no evidence Itoje had attended any hospitality events, meaning it was a salary benefit and not a commercial arrangement.
- Nigel Wray also made a series of investments into companies run by Saracens players:
o £250,000 into Itoje’s company
o £220,000 into one owned by Richard Wigglesworth.
o £450,000 was given to Vuniprop, a company owned by the brothers Billy and Mako Vunipola, to enable them to buy a house. Renovation costs were also loaned, interest free by Wray.
o £319,600 for a property bought by Chris Ashton, which Wray and a director paid towards



Edited 1 time(s). Last edit at 24/01/2020 09:06 by centrethere.

Re: Summary of Salary cap breaches with the players
Fiver 24 January, 2020 08:21
Given that Saracens wouldn't open up their books for a full review, are we sure that all of the "co-investments" have been uncovered? Was it really just the five current and one former player that ever got involved?

Re: Summary of Salary cap breaches with the players
centrethere 24 January, 2020 09:09
Isn't the report into the last 3 seasons and doesn't include this one. So expect there may well be more to come.

Re: Summary of Salary cap breaches with the players
Malvernman 24 January, 2020 10:34
No we don’t know whether other players had special arrangements with Wray or others - and may never find out as Saracens decline to open their books for forensic examination. Indeed they prefer to be relegated rather than agree to that, which is disturbing. But it does not seem unlikely that there were others.

We know they are in breach of the cap this season which led to the relegation, which presumably closes off the 2019/20 season.

Re: Summary of Salary cap breaches with the players
Malvernman 24 January, 2020 10:59
Some observations on the report, which I have ploughed through - with interest.

The Panel dismissed all Saracens legal arguments that the cap is anti competitive. Much of the teport is an analysis of competition law.

The Panel firmly backed the judgements of the Prem’s Salary Cap Manager, dismissing Saracens attempts to discredit his arguments. They also condemned Saracens QC’s attempt to question the integrity of Mark McCafferty’s evidence (former PRL C/Exec).

The overspends on the cap was greater than than has been reported. Points can only be deducted when the overspend exceeds £350k. Up to that limit the penalty is only financial, an “overrun tax” levied on a rising scale. The Panel netted off the £350k to reach a total to use when deciding on the points deduction. So add that back to the figures being quoted in the press!

I think the Panel could on the evidence easily have made a finding of “deliberate” behaviour, rather than “reckless”. Indeed it is hard to see why they reached their conclusion.

They decided it would be too harsh to deduct 2 x 35 points for two seasons of major overspend - which would have meant certain relegation as no team could make up that shortfall. But they simply state this with no real justification given. My view is that, in view of Saracens attitude and actions, the Panel let them off lightly. It is of course Prem Rugby which has now relegated them not the Panel.

Re: Summary of Salary cap breaches with the players
WarwickEastie 24 January, 2020 15:20
A bit rich trying to claim the salary cap is anti competitive given they signed up to it - and then drove a coach and horses through it with side deals while other clubs are presumably observing it.

It was there to stop rugby being dominated by a rich club (a la Man City in football) - presumably to get a level playing field and therefore more interesting matches - and also to preserve the financial viability of clubs who end up in a financial arms race which could destroy them (and has done in the past - Richmond etc).

Re: Summary of Salary cap breaches with the players
Fiver 24 January, 2020 16:55
I love how it's a disaster for Saracens when they're facing relegation. It was tough luck for Warriors, Irish, Falcons, and let's not mention London Welsh.

Clubs like these have been facing spiralling costs due to the wage inflation we've seen over the years. A year in the Championship really hurts clubs without a multi-millionaire spending his money. We were very lucky to have Cecil, but the game has moved on since those days so fewer clubs can find the level of 'investment' required.

The thing that worries me is the talk of extending the cap, I believe that would be the absolute ruin of the game as you'd end up with a three or four team premiership.

Re: Summary of Salary cap breaches with the players
centrethere 24 January, 2020 18:45
The cap will be increase following PRL next review- anyone bet against it?

Re: Summary of Salary cap breaches with the players
NW2 24 January, 2020 20:12
Quote:
Fiver
I love how it's a disaster for Saracens when they're facing relegation. It was tough luck for Warriors, Irish, Falcons, and let's not mention London Welsh.
Clubs like these have been facing spiralling costs due to the wage inflation we've seen over the years. A year in the Championship really hurts clubs without a multi-millionaire spending his money. We were very lucky to have Cecil, but the game has moved on since those days so fewer clubs can find the level of 'investment' required.

The thing that worries me is the talk of extending the cap, I believe that would be the absolute ruin of the game as you'd end up with a three or four team premiership.

Couldn't agree more Fiver, the beginning of the end.

Re: Summary of Salary cap breaches with the players
Garym 25 January, 2020 11:07
We also need a clear statement from the PRL/RFU on when will Sarries be allowed back into the Premiership (on the proviso that they win the championship). Next season or as widely reported will they have to stay down for a subsequent year as they won't meet the compliance with the premiership salary regulations for the preceding two years. If it is two years then whoever gets relegated in 20/21 will end up competing against Sarries for promotion!

Re: Summary of Salary cap breaches with the players
ROLLO 25 January, 2020 12:40
I wonder if Bristol met the cap for two years?


Sorry, only registered users may post in this forum.
We record all IP addresses on the Sportnetwork message boards which may be required by the authorities in case of defamatory or abusive comment. We seek to monitor the Message Boards at regular intervals. We do not associate Sportnetwork with any of the comments and do not take responsibility for any statements or opinions expressed on the Message Boards. If you have any cause for concern over any material posted here please let us know as soon as possible by e-mailing abuse@sportnetwork.net