Premiership salary cap increased

Premiership Rugby yesterday announced that the salary cap will be increased to £7m by the start of the 2017-18 season.
Currently at £5.5m the maximum amount of money Premierhsip clubs are allowed to spend on players per season will first rise to £6.5m next season before reaching £7m the following season.
The statement also confirmed that some clubs were investigated for potential breaches of the cap but an agreement has been reached and, as revealed by Neil Fissler in The Rugby Paper, the clubs in questions will not be penalised.
“Over the last few months, there has been speculation, much of it significantly inaccurate, concerning investigations into clubs,” the Premiership Rugby statement read. “During that time, Premiership Rugby has not commented in view of the confidentiality obligations in the regulations.
“It is important to clarify that investigations into potential issues concerning clubs’ annual spend happen regularly as part of the certification and annual audit of each club. The salary cap manager addresses these issues with the clubs as part of the ongoing work to support the operational management of the system. Confidentiality, therefore, remains appropriate and necessary.
“Premiership Rugby can confirm that certain issues were pursued last season with some clubs relating to access to information and to commercial contracts where there were differences of opinion as to the correct inclusion or not in the salary cap spend.
“The issues were not straightforward and were subject to differing legal opinion and consequent risk as to any judgment on the correct interpretation. Premiership Rugby and the clubs have now resolved the issues identified and have entered into appropriate confidential settlements.
“With the Clubs having reached agreement on the level, formulation and management of the salary framework through until 2018, Premiership Rugby believes this will play an important role in underpinning the objectives of financial sustainability for all clubs, a competitive and unpredictable Aviva Premiership competition and European success.”