RFU, salary cap, little future?

In 2008 the salary cap was increased for Premiership clubs from £2.2 to £4m, enabling clubs to bring in high-profile Southern hemisphere players, and therefore compete on a level playing field with the economic might of the French league Top 14. Now the RFU want to reduce the cap to £3.5m.

The increased salary cap doesn't reflect the economic status of many Premiership clubs however. Bristol are operating at an annual loss of £1m, and Bath recorded a loss of £250,000 for 2008. These are worrying figures.

By having a salary cap the RFU are maintaining the competive nature of the league, at the detriment of allowing ambitious, well managed clubs such as Leicester and Northampton from pushing on. If clubs can't control their finances then they should pay the price. However we are inthe position to help these clubs so that the Guinness Premiership remains one of the top leagues in the world.

The argument at the moment is whether the size of the league should be altered, having 10, 12 or 14 teams. Reducing the league to ten teams would mean therewould be more money to share round, and the devil take the rest! Unlikely, as the 12 premiership clubs usually stick together. Staying at 12 clubs would mean the probable reduction in salary cap and open a whole can of worms, regarding size of squads, and re-nogotiation of contracts. Increasing the size of the league to 14 would create extra revenue through two more home games, c.£400,000 for the smaller clubs, £800,000 for the likes of Leicester!

This all wreaks of 'ringfencing', a calamity for the growth of the sport. By ringfencing the Prmeiership the RFU are thereby recognising that rugby doesn't exist outside the top flight. The argument is that no relegation/promotion would produce a more attacking game. Hasn't the innumerate ELV's sorted that? Surely a more professional and competitive 2nd teir would be beneficial for the production of young talent, an a widening player base!

The reduction in the salary cap will affect the top league own. Ambitious clubs like Exeter Chiefs who lie in 2nd place in National League One, have a professional squad of 50 players. By reducing the cap tp 1.5m for the league, how will they push for the promised land next season? Let's just tell all clubs who have built stadiums, or invested in squads, to pack it all in now.

A couple of months ago rumours were rife of National One being turned into a Championship, with money being pumped in to make it a fully professional league. Now we're hearing of less wages, less premiership teams. Are we moving forward or back?

With the current economic climate, clubs at all evels needto know how and where they stand sooner than later. The RFU need to start dialogue with all clubs and come to a decision as early as possible. Communication is key, don't keep clubs in the dark!