Leicester Tigers issue statement regarding salary cap inquiry

Premiership Rugby has completed its investigation into the situation surrounding Leicester Tigers’ salary cap for the 2016/2017 and 2020/2021 seasons. 

It was found that Leicester Tigers concluded an arrangement whereby monies were paid to the image rights companies of players. Said payments, however, were not declared to the Salary Cap Director as they should have been. 

 Notably, the amount by which 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. 

As a result of the previously undisclosed payments now being counted as salary, the Salary Cap Director has determined that Tigers exceeded the Salary Cap by the following amounts: 

• 2016/17: £147,750 (Senior Salary Cap £6,000,000; Overrun limit £325,000) 
• 2017/18: £89,718.05 (Senior Salary Cap £6,400,000; Overrun limit £350,000) 
• 2018/19: £55,886.69 (Senior Salary Cap £6,400,000; Overrun limit £350,000) 
• 2019/20: £98,586.32 (Senior Salary Cap £6,400,000; Overrun limit £350,000) 

During the relevant period, the Salary Cap Regulations stated that for the first £50,000 of Overrun, a club would pay a tax of £0.50 for every £1 of overspend. Beyond the first £50,000 and up to £200,000 of Overrun, the tax is £1 for every £1 of additional overspend. 

Consequently, the breakdown of the Overrun Tax on Leicester Tigers is: 

• 2016/17: £122,750 
• 2017/18: £64,718.05 
• 2018/19: £30,886.69 
• 2019/20: £73,586.32 

In addition, Leicester Tigers have been fined £17,900 for failing to disclose information about the above arrangements in the five seasons from 2016/17 to 2020/21. 

In 2020/21 Tigers were fined for non-disclosure but there was no over-run of the Salary Cap. 

This makes a total of £309,841.06 in fines and taxes. 

“The club has co-operated with Premiership Rugby throughout the period of the investigation into historic salary cap spending,” said Leicester Tigers Chief Executive Officer Andrea Pinchen. “We accept the decision and the acknowledgement that there was no over-run in the most recent season of the review. 

“We are thankful this matter has been brought to a conclusion and pleased that we can now focus all of our energy and efforts on the future of the club.” 

Andrew Rogers, Premiership Rugby Salary Cap Director, said: “The review of Salary Cap Regulations provided stronger powers to monitor spending and investigate possible breaches of the cap in past seasons. Leicester Tigers have cooperated with my investigation and accepted the findings, which allows us to apply the sanctions detailed in the regulations. While we are satisfied that the arrangements which resulted in the overspend have been brought to an end, we will continue to assess all spending as part of our ongoing monitoring process at every club.”