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#Post#: 43095--------------------------------------------------
Myners Review of salary cap published
DIR By: Nico Wilson
Date: May 14, 2020, 5:43 am
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Full list of recommendations:
Appendix: The full list of Lord Myners’ recommendations
1. Separation of Investigation, Decision to Prosecute and
Enforcement
1.1 Enshrine a commitment by the clubs to respect the
independence of the regulations.
1.2 The current discretion for clubs to choose to remove a
director of a club pursuant to Regulation 14.7 should be
removed.
1.3 Appoint an independent Cap Governance Monitor, with reserved
powers in relation to the enforcement of the regulations.
2. Transparency
2.1 Announce the fact that a charge has been brought as soon as
is reasonably practical and within seven days, with a brief
summary of the substance and details, and proposed dates for a
hearing.
2.2 Publish disciplinary decisions in full, with the redaction
of confidential information or personal data.
2.3 Include details of all breaches and sanctions in a
comprehensive SCM annual report, which is made public.
2.4 Publish guidance from the SCM regularly and make this
publicly available.
2.5 Publish general information to share details about the
operation of the cap and how it is achieving its objectives.
2.6 Publish any changes to the regulations, along with a
rationale for how it is consistent with the five regulatory
objectives.
3. Drafting of the Regulations and Definition of Salary
3.1 The regulations should remain as a set of detailed rules,
backed up by principles.
3.2 All permitted payments to players should be automatically
included within the salary cap, except for a few clearly
communicated exceptions.
3.3 All exceptional items to be pre-approved by the SCM,
otherwise they will be automatically treated as salary.
3.4 Prohibit payments which are subjective, extend beyond a
player’s playing career or come from connected parties
(including sponsorship by connected parties). Any prohibited
payment should result in a sanction.
3.5 Broaden the current definition of connected party.
3.6 The SCM must approve all sponsorship arrangements in
advance.
3.7 Tighten provisions around player loans to ensure they are
bona fide.
3.8 Review provisions for exempt (marquee) players.
3.9 Remove the provision to deem a salary. Instead allow
evidence of inaccurate salary declaration to be sufficient
grounds for the SCM to launch an investigation.
3.10 Strengthen emphasis on clubs seeking clarification from the
SCM in relation to any uncertainty in the interpretation of the
regulations. Failure by a club to do so should be treated by the
disciplinary panel as an aggravating factor leading to an
increased sanction.
4. Club Accountability
4.1 The entry level for points sanctions should be increased.
4.2 The disciplinary panel should be entitled to take into
account a wider range of factors and be given more guidance in
relation to how those factors might influence their decision and
their relative weighting.
4.3 Increase sanctions for failure to co-operate to a level
equivalent to the sanctions available for breach of the salary
cap.
4.4 Make additional sporting sanctions available, including
relegation, suspension, stripping of titles and return of prize
money.
4.5 Provide the disciplinary panel with the power to install an
independent monitor for consistent and serious breaches.
4.6 Increase the sanctions available to the SCM for breach of
lower level regulatory breaches, including the ability to deduct
2 points, with a right of appeal for clubs before an independent
disciplinary panel.
5. Player Accountability
5.1 Tie players into the regulations so that they have
accountability with respect to the salary cap.
5.2 The following player obligations should be adopted:
i) Player declaration
ii) Reporting arrangements for players
iii) Onus on player to clarify arrangements
iv) Co-operation.
5.3 Provide sanctions for players who are in breach of their
obligations under the Regulations. These sanctions should
include fines and sporting sanctions.
6. Accountability of Others
6.1 Introduce a fit and proper test for club owners to be
available to the Disciplinary Panel in extreme circumstances.
6.2 Define a category of “club officials” to include directors
and shareholders with more than a 10% holding and each club
official should register with Premiership Rugby.
6.3 Require club officials to sign a declaration confirming that
they have read the Regulations and agree to abide by them.
6.4 Require a board representative to sign a declaration of
anticipated and actual compliance with the Regulations.
6.5 Provide that any club official who knew, or should have
known, about the breach of the salary cap and who has signed a
false declaration or certification or has unreasonably failed to
co-operate with salary cap regulations is subject to sanctions
including a ban from Premiership Rugby for up to two years
(first offence) or up to lifetime (any subsequent offence).
6.6 Require clubs to nominate a salary cap officer who has
duties to the SCM.
6.7 Provide obligations for agents in the regulations that
mirror those of players in relation to disclosure and obligation
to co-operate with the SCM.
6.8 Add a provision to the RFU’s agent declaration that includes
an agreement by each agent to comply with the regulations.
6.9 Provide sanctions for breach of the regulations by an agent,
including suspension of licence, forfeiture of any commission
and/or fines.
7. Powers and Resource of the SCM and the auditors
7.1 Extend system to allow central access to each club’s salary
cap spreadsheet at all times.
7.2 Require clubs to provide copies of documents such as new
contracts to the SCM within 14 days.
7.3 Clarify the power of the SCM to attend clubs without notice
and require them to provide him with finance reports and access
to management accounts.
7.4 Allow the SCM to make requests to see players’ tax returns
on a random basis.
7.5 Clarify that, as a part of their annual review, the auditors
are able to obtain downloads of raw accounting data from each
club’s system.
7.6 Enhance the powers available to the auditors in their annual
audit to include mandatory interviews, sampling of tax returns
and more extensive provision of information and documents by the
clubs.
7.7 Introduce sanctions for clubs that do not comply with
reasonable requests from auditors within a reasonable time
frame.
7.8 The SCM should work with the Rugby Players Association and
RFU to provide a programme of education for players and agents
so that they understand their obligations under the regulations.
7.9 Change the title of the “SCM” to salary cap director”.
7.10 Appoint a deputy SCM to assist the SCD.
7.11 Appoint a full-time data analyst.
7.12 Make investigatory audits compulsory if the SCM has
reasonable grounds to initiate.
7.13 Expand the scope of investigatory audits to include broader
powers of search.
7.14 Provide sanctions for any club or individual who is found
to have deleted evidence post the notification on an
investigatory audit.
7.15 Introduce random mini investigatory audits for two clubs
every year
Here is the link to the report:
HTML https://media-cdn.incrowdsports.com/4c20e3b1-ed1c-4922-bf7f-e9ab34d2581e.pdf
#Post#: 43100--------------------------------------------------
Re: Myners Review of salary cap published
DIR By: Pressie
Date: May 14, 2020, 7:10 am
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I wonder if agents fees are included in the cap or are they only
paid by the player (unlike in football)?
#Post#: 43102--------------------------------------------------
Re: Myners Review of salary cap published
DIR By: Boonie
Date: May 14, 2020, 7:19 am
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The BBC take on it:
Premiership clubs who breach the salary cap in the future should
face a punishment that "fits the crime", including possible
stripping of titles and suspensions, according to a damning
review of the rules.
Other recommendations, in what would be a radical overhaul of
the salary cap regime, include "stronger investigatory powers"
and making Premiership Rugby, club executives, players and
agents more accountable.
The review, undertaken by former government minister Lord Myners
on behalf on Premiership Rugby, came after reigning champions
Saracens breached the salary cap in each of the past three
seasons.
The London club were docked 35 points and fined £5.3m for the
breaches and then automatically relegated after failing to prove
the club would comply this season.
Yet there was no power for Premiership Rugby to remove the
titles the club had won when they were operating outside of the
salary cap.
In a 55-page review, published today, Lord Myners wrote: "It is
important that my recommendations should be viewed as a package
of measures which, if taken together, will go a long way to
restoring the integrity of the regulations.
"They should not be viewed as a menu of options from which to
pick and choose."
In addition to the proposed strengthening of sanctions, he said
he has "sympathy" with clubs who said they wanted to end the
current system of having two marquee players, whose salaries do
not fall within the cap.
"There are some existing areas of the regulations that are
obviously not widely supported. Quite a few clubs expressed a
desire to end the marquee player system on the grounds that it
is inflationary, over complex and unnecessary. I have a great
deal of sympathy with this position."
He did not propose seeking an "alternative mechanism" to the
salary cap, having found that it will "continue to achieve its
objectives" if applied robustly.
Lord Myners was not tasked with commenting on the level of the
cap.
A series of additional measures were also considered as part of
the review, including disciplinary hearings being heard in
public, the publication of player salaries and further
restrictions on salaries and image rights payments.
However, Lord Myners said he had been convinced by clubs that
"these more draconian measures are not necessary".
He said he would have "no hesitation" in recommending them "if
future violations continue to the detriment of the economics and
reputation of PRL and the game more broadly".
'Judge and jury'
Myners says Premiership clubs must not in the future "act as
judge and jury for fellow competitors", as was the case both in
2015 and in 2019.
From 2015 Myners cites "a last-minute settlement of the salary
cap breach against Saracens", as well as a second incident
involving another club in the same year.
He also references the "rushed changes to the regulations" which
saw Saracens issued with a further 70-point deduction and
relegated from the Premiership in 2019.
Myners has also called for the appointment of an Independent Cap
Governance Monitor, and has demanded greater powers and support
for the Salary Cap Manager.
However, Premiership Rugby has not committed to implementing
Lord Myners' recommendations and responded by saying there will
now be a consultation with clubs and stakeholders.
Darren Childs, chief executive of Premiership Rugby, said:
"Premiership Rugby established an independent review of the
salary cap because we want to ensure that it provides a
world-leading framework for the future.
"We are immensely grateful to Lord Myners for his thorough and
insightful work during an extensive review process.
"We welcome the comprehensive set of recommendations put forward
by Lord Myners following the review and we are pleased to
publish his report so that everyone has an opportunity to
consider his conclusions.
"In the next stage of this process, we will consult carefully
with our clubs and other stakeholders as we finalise the new
salary cap regulations for the long-term benefit of our sport."
#Post#: 43286--------------------------------------------------
Re: Myners Review of salary cap published
DIR By: Fearless Fred
Date: May 21, 2020, 5:26 am
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The Grauniad has a comment piece
HTML https://www.theguardian.com/sport/2020/may/21/premiership-rugby-financial-fair-play-myners-report-the-breakdown<br
/>from Paul Rees that mentiones half way through that We (along
with Saints and Wasps) are for Myners' outcomes, including the
potential of removing Marquee player status.
[quote=The Breakdown]“It is clear to me, and to many others
within clubs, that the marquee players exemption completely cuts
across the objectives of equality and competition and creates
unhelpful inflationary pressure on wages,” Myners wrote. “The
time is ripe for a review of their continued usefulness.”
A number of clubs, including Northampton, Harlequins and Wasps,
agree with him as they try to run their clubs at a time when
income has reduced to a trickle and no date has been set on the
season’s resumption. With matches likely to be played behind
closed doors for some time and fears that a second wave of the
virus will disrupt next season, they appreciate that controlling
costs will be a priority for at least the next couple of
years.[/quote]
#Post#: 43291--------------------------------------------------
Re: Myners Review of salary cap published
DIR By: JammyGit
Date: May 21, 2020, 6:12 am
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Mark Evans was pretty cutting about Bristol wanting to keep the
marquee players and banging on about increasing the cap
"So Bristol Bears follow a 25 year Premier Rugby tradition
whereby the dominant financial team of each particular era go
public & support a higher salary cap in the name of
“ambition”when they are one of a few clubs who can finance
it.Preceded by Leicester,Sale, Saracens & Bath."
#Post#: 43306--------------------------------------------------
Re: Myners Review of salary cap published
DIR By: deadlyfrom5yardsout
Date: May 22, 2020, 1:09 am
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Lansdown is beginning to look like Wray.
#Post#: 43311--------------------------------------------------
Re: Myners Review of salary cap published
DIR By: Fearless Fred
Date: May 22, 2020, 2:54 am
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Every few years there's an owner who wants to basically outspend
everyone to build an unbeatable team. Before Bristol you've had
Sarries, Bath, Sale, etc.
#Post#: 43316--------------------------------------------------
Re: Myners Review of salary cap published
DIR By: A222Quin
Date: May 22, 2020, 4:02 am
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And in the Southern Hemisphere - players are leaving SA and Aus
in their droves either for Japan or to sugar daddied or debt
heavy clubs in France and England. The game is all over the
place money wise. Not surprised Lansdown wants to spend his
cash, he's got plenty of it!
#Post#: 43321--------------------------------------------------
Re: Myners Review of salary cap published
DIR By: MadMax
Date: May 22, 2020, 6:16 am
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--- Quote from: deadlyfrom5yardsout link ---
>
> Lansdown is beginning to look like a legal version of Wray.
>
--- End Quote ---
Corrected that for you!
#Post#: 43328--------------------------------------------------
Re: Myners Review of salary cap published
DIR By: Monte
Date: May 22, 2020, 8:39 am
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--- Quote from: Fearless Fred link ---
>
> Every few years there's an owner who wants to basically
outspend everyone to build an unbeatable team. Before Bristol
you've had Sarries, Bath, Sale, etc.
>
--- End Quote ---
Yes but Steve Lansdown is in a different financial league to
Craig, Kennedy, Wray etc he has far more money. Although retired
from Hargreaves Lansdown he still has shares as far as I am
aware. So will just be a case of how far he wants to push it.
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