Welsh Regions Raise Salary Cap

Wales Online has reported that the Welsh Regions (Scarlets, Ospreys, Cardiff Blues and Dragons) will have greater spending power next season after agreeing to raise their salary cap by £1m each. Wales’ four regions have agreed to increase their wage cap from £3.5m to £4.5m per team.

The £3.5m cap was self-imposed by the regions back in 2011 in response to the difficult economic climate at the time. It was felt that belts had to be tightened and wage bills reduced, which inevitably made it harder to hold on to star players. But now the financial situation is much improved and the regions have mutually agreed to raise the spending limit by a £1m per team.

This is because of the new European deal and the new funding arrangement with the WRU which was put in place following Welsh rugby’s civil war. As part of the new Rugby Services Agreement, national dual contracts were introduced and 16 players have now been signed up. Under the NDCs, the WRU pays 60 per cent of the players’ wages, which frees up money in the regional budgets to spend on squad strengthening.

The Union now has increased financial muscle following their £33m kit deal with Under Armour and a £10m windfall from hosting matches at the World Cup. That means as well as securing home-based players on NDCs they are also able to look at bringing back exiles like Jonathan Davies, Leigh Halfpenny and George North.

With more money now coming into the professional game, the regions feel the time is right to increase the wage cap, with the plan being to invest in the whole rugby set-up. They will still be some way below the levels in other countries, with the French cap set at £8.6m and the English one rising to £6.5m from £5.5m next season.