The salary cap

[MrPartridge]

Lots of talk in relation to the salary cap that exists on a number of threads at the moment. Can anyone provide a summary of how it currently works and what rules the AP clubs have to abide by or link to a website with the full details.

I must admit I don't know the full details and would like a better appreciation. Also - I assume the salary cap rules are different in Ireland, France, Scotland and Wales to the AP, hence the recent exodus of quality players particularly to France.

Much appreciated.

[h's dad]

http://www.premiershiprugby.com/premier ... VGKQTc3vrQ

"In the 2012-13 Season, the base Salary Cap will increase to £4.26m, rising to a maximum of £4.5m with the continuation of the Academy Credits. In addition to this, a Club may choose to nominate to Premiership Rugby one qualifying player to be excluded from the Salary Cap."

I believe the Welsh have a £3.5m cap for HC/Amlin squad players, this may be out of date but with the way they're exodusing(?) at the moment it sounds about right.
I don't think the Irish have a cap - they just don't have any money.
For France I've seen statements saying there is no cap or that it is over 8m euros. I don't know which, if either, is correct.

Of course I could have it all wrong and await correction.

[MrPartridge]

Thanks H's Dad... a really useful post for us with a lack of knowledge on this front.

Two questions emerge for me (1) who is the current Tigers player excluded from the current salary cap (I think from previous posts this maybe Castro and (2) you make an interesting point about Irish clubs not having funds - but they have been the dominant force in the last few HK campaigns.

A third question - anyone know what the average salary is for an AP player? Assuming a squad of 30 they must be looking at £100-150K per year if my Maths is accurate...

[h's dad]

The identity is confidential although it is generally assumed to be Castro.

Ireland have centrally contracted players and a policy of not playing foreign based players for the national team which has helped keep the regional teams strong although I think this may be starting to creak.

The senior squad on the Tigers website has 49 players, excluding the marquee player £4.5/48 is £93,750 assuming Tigers are at cp lee and I expect they are. It can vary widely, I would imagine from £20k or less to £250k+. There are also dispensations for long term injuries allowing temporary replacements. Also, presumably there is some sort of offset when squad players are loaned out to other clubs.

[MrPartridge]

Thanks again H's Dad - this is very enlightening....

If you are correct and the average salary is £93K then that does surprise me. Plenty of PL footballers earn that in a week...

Any thoughts on why the marquee player has to be kept confidential? That seems to be a little bit daft to me in all honesty. And can the club change who this is on a year-by-year basis?

[jonnyatom5]

Isn't the reason Irish players stay in Ireland because of the Tax breaks on retirement? I found this online, don't know how true it is ...

Under the tax break introduced in 2002 by then minister for finance Charlie McCreevy, a home-based player can reclaim 40 per cent of the tax he has paid over the course of a maximum 10 years in Ireland (equating to 17 per cent of his gross pay) provided he ends his career in Ireland.

[h's dad]

Isn't the reason Irish players stay in Ireland because of the Tax breaks on retirement? I found this online, don't know how true it is ...

Under the tax break introduced in 2002 by then minister for finance Charlie McCreevy, a home-based player can reclaim 40 per cent of the tax he has paid over the course of a maximum 10 years in Ireland (equating to 17 per cent of his gross pay) provided he ends his career in Ireland.

Thanks Jonny, that would certainly be an incentive and it still seems to be in place despite McCreevy's income tax policies generally being described as calamitous by all and sundry.

[h's dad]

Thanks again H's Dad - this is very enlightening....

If you are correct and the average salary is £93K then that does surprise me. Plenty of PL footballers earn that in a week...

Yep. Shocking isn't it.

Any thoughts on why the marquee player has to be kept confidential? That seems to be a little bit daft to me in all honesty.

Individual salaries are generally a matter of confidentiality. I suppose a parallel would be published accounts where the remuneration of the highest paid director is noted but not he identity.

And can the club change who this is on a year-by-year basis?

I am sure the answer is yes, as long as the criteria are complied with.

[Off Piste Tiger]

I read a report quoting Jim Hamilton about his move to France.
He has signed a three year deal which gives him great security at his stage of his career. Also the French tax system means that if he is forced to retire during his contract he would receive the equivalent of two years salary in compensation !

It sounds like a great deal.

[voice of the crumbie]

As I understand the rules the marquee player cannot be an existing squad member but has to be someone signed from outside. Therefore Castro could not be the excluded player.

[h's dad]

As I understand the rules the marquee player cannot be an existing squad member but has to be someone signed from outside. Therefore Castro could not be the excluded player.

From the Premiership Rugby link above:

A Club may nominate to the Salary Cap Manager one Player to be excluded from their Salary Cap calculations.

A Club shall only be entitled to nominate a Player as an Excluded Player who:

(i) has been a Player of the Club for at least two full Salary Cap Years prior to the Salary Cap Year in which he is nominated as the Excluded Player; or
(ii) has not been a Player of any Aviva Premiership Club during the previous Salary Cap; or
(iii) was selected and included in a national playing squad of any country participating in the RWC2011.

The name of the Excluded Player shall be kept confidential.

I think Castro qualifies.

[DickyP]

.... I don't think the Irish have a cap - they just don't have any money.

They're richer than anyone outside of the French clubs with 'sugar-daddies'. Hugely subsidised by the IRFU and tax breaks our players can only dream of.

Of course I could have it all wrong and await correction.

Ditto.

[h's dad]

.... I don't think the Irish have a cap - they just don't have any money.

They're richer than anyone outside of the French clubs with 'sugar-daddies'. Hugely subsidised by the IRFU and tax breaks our players can only dream of.

Of course I could have it all wrong and await correction.

Ditto.

Thanks DickyP. I don’t know where I got my thoughts from. Probably the general economic deterioration over there and Jonathan Sexton’s move to France. Bit of an excessive extrapolation (that's probably not even the right smilie for apologetic embarrassment).

[MrPartridge]

In view of the excellent explanations on the salary cap here... is there anywhere where you can see how much of the cap the AP clubs have taken up in the last few seasons. I would expect, Tigers/Quins/Sarries/Saints, etc to all be on the limit, but I'd be interested to compare our wage bill to the likes of Worcester, Exeter, etc.

Also - is there any idea of how much the best players are getting per year? The marquee player rule seemingly doesn't have a limit so I guess hypothetically you could have a single player earning more than the rest of the starting XV. Are there any known £1M players in the AP on wages alone, I wonder?

[h's dad]

In view of the excellent explanations on the salary cap here... is there anywhere where you can see how much of the cap the AP clubs have taken up in the last few seasons. I would expect, Tigers/Quins/Sarries/Saints, etc to all be on the limit, but I'd be interested to compare our wage bill to the likes of Worcester, Exeter, etc.

Also - is there any idea of how much the best players are getting per year? The marquee player rule seemingly doesn't have a limit so I guess hypothetically you could have a single player earning more than the rest of the starting XV. Are there any known £1M players in the AP on wages alone, I wonder?

I'd put good money on the AP still being a long way away from the £1m player. Halve it and knock some more off.

As for the rest, if I was to tell you, I'd have to kill you