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Premiership Rugby clubs vote to reduce Salary Cap

Northampton Saints wholeheartedly supports the decision confirmed by Premiership Rugby and its clubs to reduce the Salary Cap, following the significant financial impact of the COVID-19 pandemic.

Premiership Rugby’s 13 member clubs voted unanimously to reduce the Salary Cap from the 2021-22 season onwards, before returning to the current level before the start of the 2024-25 season, subject to review.

“Saints are supportive of the decision to reduce the salary cap and believe this will help all clubs in the league move towards a more sustainable economic future,” said Saints Chairman, John White.

“It is helpful to have clarity on what the cap looks like until the 24/25 season, as it enables us to refine our existing thinking and plan effectively moving forwards.”

John White, Northampton Saints Chairman

“Alongside the other steps we are taking, this adjustment to the salary cap is an important step as we continue to ensure that the Club can operate on a firm financial footing, especially in light of the significant challenge the COVID-19 pandemic has created.

“While the mechanics of the cap have changed, the Club is still extremely confident it can continue to assemble a talented squad of players, balancing youth and experience, which is well placed to continue to be highly competitive in both the Premiership and in European competition.”

At a meeting of the Premiership Rugby clubs on Monday 8 June it was decided...

From 2021-22:

  • The senior ceiling will be £5m (down from £6.4m), and it will continue to be linked to the central growth of Premiership Rugby.
  • Home-grown player credits will be retained up to £600,000.
  • International and EPS player credits will be retained but limited to a maximum of £400,000.
  • Season-long loans salary cap exemption will be removed.
  • The academy ceiling will remain at £100,000 (this is for non-home grown academy players) but the upper salary limit for an academy player will increase from £30,000 to £50,000. Homegrown academy players do not get counted in the £100,000, boosting the clubs' ability to support young English-qualified talent.
  • For any existing contracts that continue into the 2021-22 salary year, and beyond, their cap cost will be counted at 75% of their overall actual value, to sensibly manage the transition to new cap levels.

From 2022-23:

  • Excluded players will reduce to one player, except for where a club has a current contract in place for two excluded players. In that scenario, both players may remain as excluded players until the first of their current contracts expire. The decision to reduce from two excluded players to one is based on balancing financial sustainability while still attracting the best talent from around the world to the league.

From 2024-25:

  • The senior ceiling will return to a minimum of £6.4m.