New Salary Cap Breach?

[Cagey Tiger]

I await the howls of protest from other club's fans that we are being "let off" even though everthing is governed by regulations.

[TigerCam]

£300k ish fine and we move on.

We do. I read somewhere that Premiership Rugby said that they do not have sufficient finding to conduct the same investigation into other clubs. I suggest that they use the £300K to start a fund for investigations into all the other clubs. This is not borne out of malice but to see that all the other clubs have complied with the salary cap regs. A "clean sheet" for all; to prevent the rumour mill turning and fingers pointed.

[ourla]

Looking around the opposition team boards it's (rightly) not causing much of a stir.

[Old Hob]

BBC running the story (a bit)

https://www.bbc.co.uk/sport/rugby-union/60754388

[Hot_Charlie]

Where does the fine/tax money go to?

Is there anyone at the club now who was in a position to know this was occurring, or was party to these arrangements?

The most important thing is we have been open & accepted the findings.

Might be worth the Salary Cap Manager checking the other 12 clubs in relation to this type of arrangement.

Excellent question I would assume any unpaid taxes go to HMRC and the fines to premier rugby

I think it's just the name of the fine. The fines for a minor salary cap breach (an "overrun") are called an "Overrun Tax".

In each of the four seasons, the amount by which Leicester Tigers exceeded the Salary Cap was below the ‘Overrun’ limit above which a formal charge may be brought for an alleged breach of the regulations.

The club has accepted the findings, which means there will be no further disciplinary process or appeal. The level of fine imposed in these circumstances, known as an Overrun Tax, is calculated by a formula set out in the regulations.

[tigerburnie]

I guess we will never know if it was cynical by some or just plain clumsy, however in the past and we look forward and have put things right.

[Tiglon]

https://www.premiershiprugby.com/2022/0 ... concluded/

The "taxes" referred to are the overrun taxes as per the salary cap regulations. Nothing to do with HMRC.

We were over the cap 4 years in a row from 2016/17 to 2019/20 but each season was less than half the overrun limit. You have to go over the overrun limit for things like points deductions to be on the table, up until that point it's just an automatically calculated overrun tax.

The worst season, we were 2.5% over the salary cap (half of the overrun limit). That was 2016/17, the same season that Saracens exceeded the cap by 18.5% (three times the overrun limit). Wasps were over the cap that season by 0.6% and also had to pay an overrun tax.

We failed to disclose image rights payments 5 years in a row from 2016/17 to 2020/21 and have been fined £17,900 for that.

[Rugbygramps]

https://www.premiershiprugby.com/2022/0 ... concluded/

The "taxes" referred to are the overrun taxes as per the salary cap regulations. Nothing to do with HMRC.

We were over the cap 4 years in a row from 2016/17 to 2019/20 but each season was less than half the overrun limit. You have to go over the overrun limit for things like points deductions to be on the table, up until that point it's just an automatically calculated overrun tax.

The worst season, we were 2.5% over the salary cap (half of the overrun limit). That was 2016/17, the same season that Saracens exceeded the cap by 18.5% (three times the overrun limit). Wasps were over the cap that season by 0.6% and also had to pay an overrun tax.

We failed to disclose image rights payments 5 years in a row from 2016/17 to 2020/21 and have been fined £17,900 for that.

Thanks Tiglon

[TigerReggie]

Well BBC Radio Leicester reporting it very dramatically and making it very much sound like they knew exactly what they were doing.

[ay2oh]

As far as I know Adam Whitty isn’t a financial expert and wouldn’t know the workings of the club

[Wayne Richardson Fan Club]

£300k ish fine and we move on.

We do. I read somewhere that Premiership Rugby said that they do not have sufficient finding to conduct the same investigation into other clubs. I suggest that they use the £300K to start a fund for investigations into all the other clubs. This is not borne out of malice but to see that all the other clubs have complied with the salary cap regs. A "clean sheet" for all; to prevent the rumour mill turning and fingers pointed.

Now that would be a sensible thing, so no chance of Premiership Rugby doing that. It is time they fined themselves for being useless at policing the cap.
One club took the "Michael" with the cap & we seem too have serially tried to get round it. There is no way some of the other 11 haven't been "at it".

[Pmvl]

https://www.skysports.com/share/12566825
Here’s Sky’s report on it

[chappie]

Surly Peter Tom must take a bit of the blame as he’s the Chairman and he knows full well what is happening within the club.
Our current CEO must also take some responsibility as she has been in office during some of the dates mentioned in the report, what did she used to say I want to be transparent as does the club!!
Now would be a good time to have a LTTV special so they can be asked questions and address the fans with the full facts??

[Rugbygramps]

Surly Peter Tom must take a bit of the blame as he’s the Chairman and he knows full well what is happening within the club.
Our current CEO must also take some responsibility as she has been in office during some of the dates mentioned in the report, what did she used to say I want to be transparent as does the club!!
Now would be a good time to have a LTTV special so they can be asked questions and address the fans with the full facts??

Honestly not sure what would be gained by that. Pay up and move on making sure it doesn’t happen again

[Tiglon]

Here is a list of known salary cap breaches so far, in order of % over the cap:

2016/17 Saracens £1,134,969 (19%)
2018/19 Saracens £906,505 (14.2%)
2016/17 Tigers £147,750 (2.5%)
2017/18 Saracens £140,250 (2.2%)
2019/20 Tigers £98,586 (1.5%)
2017/18 Tigers £89,718 (1.4%)
2018/19 Tigers £55,887 (0.9%)
2016/17 Wasps £40,528 (0.7%)
2017/18 Quins £12,479 (0.2%)

Have I missed any?

I believe only Tigers and Saracens have been fined for failure to disclose, i.e. actively trying to deceive the Salary Cap Manager (although both clubs would argue that they thought they didn't have to disclose the payments in question).

Not great company to be in and, for all the the attention on Nigel Wray, it's surprising not to see our chairman now being criticised.