Salary cap for the Top 14!

[Bullitt]

In news that could have a profound effect on the movement of players across the globe, La Ligue Nationale de Rugby (LNR) have announced the implementation of a salary cap in France from the 2010-2011 season.

In their annual meeting held in Paris on Wednesday, the committee member's of the LNR, the organisation that controls both the Top 14 and ProD2 voted to restrict the spending of France's top clubs.

From next season, clubs will be limited to a salary budget of 8 million Euros ( 7,1 Million GBP or 11, 5 Millions USD).

The figure is still significantly higher than the 4,4 Million Pound limit in the Guinness Premiership, although that figure is expected to be raised in the near future as many clubs are struggling to operate within it's limits.

Significantly, and in the wake of a number a financial disasters at French clubs in recent times, clubs will have to hold a reserve of 20 per cent of their salary budget, and increase from the current 10 per cent.

Indirectly linked to salary cap is the implementation of quotas on 'foreign players'. From next season, all French clubs will be obliged to have a minimum of 40 per cent of players "trained in France" (i.e. from French academies), a drop from the 50 per cent initially planned.

That figure will rise to 50 per cent from the 2011-2012 season and will reach 60 per cent for the 2012-2013 season.

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Still double the cap of the Premiership clubs. Plus the celtic lot will still have a free reign to spend what they care.

 

[dullonien]

Yes the Welsh clubs can spend what they want, but there are however strict quotas on non Welsh qualified players (not alowed to be a rule though). I believe the current understanding is a max of 6 non Welsh qualified players, anyone confirm? That's a hell of a lot less the 60% allowed for the French clubs if those figures are true.

 

[feicarsinn]

Yeah Mite, the Celtic clubs have far from free reign in the transfer market.The are usually strict rules in place about playing players not eligable for the national team.

Anyway this has been on the cards for some time. The League seems to want to clamp down in massive spending which should be good for smallers clubs. This information isn't that useful of course without knowing the average wage bill of a French club.

 

[dullonien]

I'd love to know how much a team like Stade or Toulon are currently paying in wages. Anyone have the faintest idea? This all seems rather rushed, doesn't it? How are teams that are currently way over budget going to reduce that in time for next season without breaking player contracts? For example, Toulon have a huge amount of expensive foreign players on their books, most of which will only be in their 1st year of their contracts. How will they manage without either making paycuts or offloading some players?

 

[DonBilly]

<div class='quotetop'>QUOTE (dullonien @ Dec 17 2009, 03:40 PM) <{POST_SNAPBACK}></div>

I'd love to know how much a team like Stade or Toulon are currently paying in wages. Anyone have the faintest idea? This all seems rather rushed, doesn't it? How are teams that are currently way over budget going to reduce that in time for next season without breaking player contracts? For example, Toulon have a huge amount of expensive foreign players on their books, most of which will only be in their 1st year of their contracts. How will they manage without either making paycuts or offloading some players?[/b]

The capping set for next season represents the max of current season plus 5%. This means that this capping aims at controlling the increase of salaries for next season.

It's likely therefore that Top14 follows with the highest salaries, especially if the Euro follows being one of the strongest currencies.

 

[dullonien]

<div class='quotetop'>QUOTE (DonBilly @ Dec 17 2009, 05:06 PM) <{POST_SNAPBACK}></div>

<div class='quotetop'>QUOTE (dullonien @ Dec 17 2009, 03:40 PM) <{POST_SNAPBACK}>

I'd love to know how much a team like Stade or Toulon are currently paying in wages. Anyone have the faintest idea? This all seems rather rushed, doesn't it? How are teams that are currently way over budget going to reduce that in time for next season without breaking player contracts? For example, Toulon have a huge amount of expensive foreign players on their books, most of which will only be in their 1st year of their contracts. How will they manage without either making paycuts or offloading some players?[/b]

The capping set for next season represents the max of current season plus 5%. This means that this capping aims at controlling the increase of salaries for next season.

It's likely therefore that Top14 follows with the highest salaries, especially if the Euro follows being one of the strongest currencies.
[/b][/quote]

Ok, that makes alot more sense now. Now their budget hasn't been reduced atall. It's just being stopped from spiralling out of control (if it hasn't alrady).

Thanks for clarifiying DonBilly