Premiership Rugby Clubs Warned Salary Inflation Is Not Sustainable

Bristol Bears signed Charles Piutau from Pro14 side Ulster to record £1M-per-year deal.GETTY IMAGES

England's top clubs were "warned that the soaring inflation in players' salaries is no longer sustainable," with the Rugby Football Union predicting a "significant downturn in funding" to Premiership Rugby "because of the tough economic climate," according to Gavin Mairs of the London TELEGRAPH. The increase in the salary cap to £7M ($9.2M) at the start of last season and the ability for the clubs to exclude two "marquee" players from that cap has resulted in wages rising "sharply" in the last two seasons. Salary inflation "has also been driven by the increase in funding to the 12 Premiership clubs" from the RFU, which agreed to pay a fixed four-year payment of £112M ($147M) as part of an eight-year deal struck in '16 "to secure greater access to the England players." However, 11 of the 12 Premiership clubs "still posted losses last year and suffered combined losses" of around £20M (TELEGRAPH, 7/31).