Premiership club 'fined' after salary cap breach
NEWS: Leicester Tigers have paid an ‘over-run tax’ from Premiership Rugby relating to a breach of salary cap regulations during the 2019/20 season.
Premiership Rugby said additional payments of £47,136.91 (US$59,129.49; €55,055.47) were identified in that campaign.
The Tigers were previously fined almost £310,000 two years ago – in what Premiership Rugby said was a separate matter from the latest development.
But they avoided any points deduction even though an investigation by league bosses found they had failed to comply with salary cap regulations.
It was discovered then that Leicester had arranged for a third-party company to make payments to the image rights companies of Tigers players.
The payments that were made over the four seasons from 2016/17 to 2019/20 should have been declared as part of Leicester’s salary cap, but they were not disclosed.
Saracens were relegated from the Premiership for salary cap breaches at the end of the 2019/20 campaign, having previously been fined more than £5 million and docked 35 Premiership points for exceeding the cap in the previous three seasons.
Premiership Rugby, commenting on Leicester’s latest infraction of the rules, said: “These payments relate to salary during the Covid-19 period, which had not been included in the club’s certification for the 2019/20 salary cap year.
“In accordance with the regulations, for this level of additional over-run, the club is required to pay £1 for every £1 overspend, being £47,136.91.
“Leicester Tigers has paid the over-run tax in full.”
Leicester Chief Executive Andrea Pinchen said: “While disappointed to again have historic salary cap spending relating to 2019/20 season result in this over-run tax, as was the case in March 2022, we accept the findings of Premiership Rugby.”
She added: “We have accepted and paid the over-run tax and, as stated in March 2022, the current club management – who inherited this issue – have a great respect for the salary cap regulations and remain committed to ensuring Leicester Tigers is compliant every season.”
