Tigers fined almost £310,000 for salary cap overspend

[Rossm]

PREMIERSHIP RUGBY can confirm that it has concluded its investigation into Leicester Tigers’ Salary Cap compliance for the seasons 2016-17 to 2020-21. The investigation was initiated by Premiership Rugby’s Salary Cap Director, Andrew Rogers, using the strengthened powers introduced following a review of the regulations in 2020.

In summary, the investigation found that Leicester Tigers, and one or more club commercial partners, entered into arrangements whereby a third-party company made payments to the image rights companies of Leicester Tigers players. These payments should have been declared to the Salary Cap Director as salary, but they were not disclosed.

In each of the four seasons from 2016-17 to 2019-20, Leicester Tigers exceeded the Salary Cap by an amount 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.

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

2016-17: £147,750.00 (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: £122,750.00
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 2020-2021 inclusive. In respect of 2020-21 Tigers were fined for non-disclosure but there was no overrun of the Salary Cap.

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

Andrew Rogers, 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.

[Rossm]

Tiggs, who are 12 points clear of the Cheats at the top of the Premiership, have escaped sporting sanctions for their breach and will not be deducted points.

Comparisons with the Cheats, who were relegated in 2020 on the back of their own salary cap breaches, show a far greater overspend in their scenario: more than £1.1m in 2016-17; £98,000 in 2017-18; and £906,000 in 2018-19 compared to the Tigers' largest overspend figure of £147,750 for 2016-17.

[InBetweenWasp]

It seems like a relatively insignificant overspend and although it shouldn't have happened, Tigers have been open in working with the Salary Cap Manager in their investigation.

Seems like a fair result to me.

[DGP Wasp]

Nigel Wray has issued the following statement in response to Leicester Tigers’ Salary Cap breach:

"You call that cheating?  Hold my beer..."

[hookender]

Nigel Wray has issued the following statement in response to Leicester Tigers’ Salary Cap breach:

"You call that cheating?  Hold my beer..."

😂😂😂

[NellyWellyWaspy]

Well, that will pay for a few more first class jolies to some remote Caribbean island for a 'conference'.

[mike909]

Nigel Wray has issued the following statement in response to Leicester Tigers’ Salary Cap breach:

"You call that cheating?  Hold my beer..."

😂😂😂

That was my first thought too.......

[WonkyWasp]

This doesn't feel right.  FOUR times??

[Neils]

This doesn't feel right.  FOUR times??

Agree - the fact that somebody thought that they could continually get away with it stinks. I realise management (ownership too I recall) there has changed but it is in recent years. Top two in the league both found to be serial cheats doesn't sit well.

[Rossm]

From the BBC.

'Relief for Tigers... but questions to answer too'
ANALYSIS by Adam Whitty, BBC Radio Leicester's Tigers reporter

The overwhelming feeling at Leicester, and from their fans, will be of relief. With Tigers 12 points clear at the top of the table, this investigation had the potential to derail their title bid, or even relegate them, had the offences been serious enough.

But this is not a good day for England's most successful club. Tigers have been found to have systematically bypassed rules aimed at keeping the Premiership fair and competitive, and have incurred the second biggest salary cap fine in the division's history.

Tigers, miraculously, appear to have regularly overspent just below the limit that could have led to a points deduction or worse. Had they been investigated under current rules, and not those in place at the time, they'd be in big trouble.

Their reputation is significantly hit by this, and despite wholesale change in the boardroom and at coaching level since these breaches, some figures have big questions to answer.

[hookender]

This doesn't feel right.  FOUR times??

Agree - the fact that somebody thought that they could continually get away with it stinks. I realise management (ownership too I recall) there has changed but it is in recent years. Top two in the league both found to be serial cheats doesn't sit well.

Good point there. Surely the last breach ( at least)was in the time frame when Sarries were being investigated/found guilty. Did they think just carry on to see what happens?

From what I’ve read it didn’t seem that the new management reported a possible error, but would be happy to be proved wrong.


 

[Shugs]

For me the better sanction would be to knock the overspends off the available cap next year. That might make whoever decided to conveniently spend up to the point of “real” sanction think again. They’ll get the equivalent of the fine back (and a good deal more) by being in at least the play offs this year. Cheating is cheating. The amount is irrelevant.

[Bloke in North Dorset]

For me the better sanction would be to knock the overspends off the available cap next year. That might make whoever decided to conveniently spend up to the point of “real” sanction think again. They’ll get the equivalent of the fine back (and a good deal more) by being in at least the play offs this year. Cheating is cheating. The amount is irrelevant.

Good idea.

[WonkyWasp]

Small wonder that two Clubs that have cheated are in the top two places of the Premiership.  This does not seem like justice however it is twisted. But it appears to pay off.

[backdoc]

If they banned the players that were involved for half a season that may concentrate the mind about too good to be true contracts.