Nigel Melville wants Premiership clubs to spend prospective cash on facilities, not player wages.GETTY IMAGES
The "prospective cash boost" for Premiership clubs must be spent on facilities and not player wages, interim Rugby Football Union CEO Nigel Melville warned, according to Chris Jones of the BBC. Clubs are expected to agree in principle to a deal with private equity firm CVC at a board meeting on Tuesday. The latest offer is believed to be about £200M ($251M) for an approximate 30% share in the business. But Melville said that he "wants to see the cash spent wisely." He said, "Could it mean better facilities [for the rugby programs]? Could it mean better facilities for the spectators? Could it mean investment in other ways? The idea that each club will get some sort of cash injection is probably a good thing -- investment in the game -- as long as that doesn't just go on players' wages and out of the game." Most Premiership sides are "struggling financially amid fears over spiralling costs," with only Exeter generating a profit last year. Sources at clubs said that they are therefore "keen to ensure the salary cap stays frozen despite the extra investment." Part of the deal will see CVC drive the commercial arm of Premiership Rugby "in a bid to grow the business globally" (BBC, 12/10).
