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Salary Caps and Overseas Player restrictions

Tony Manx

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To control the growth of clubs’ spending and also protect French Clubs and International Rugby, the LNR introduced a salary cap in the Top 14 in the 2010â€"11 Season.

Under the provisions of the cap, teams’ payroll was limited to â'¬8 million. There was also an existing requirement that wage bills be no more than 50% of a team's turnover which then translated to £7.1 million cap at the time it was announced - well above the English Premiership's then current £4 million cap.

For the season 2011-2012, the LNR raised the salary cap to â'¬8.7 millions euro. I am not sure what the cap is for 2012-13

At the same time, the LNR announced new rules requiring a minimum percentage of French players (“Qualifyingâ€) on the club roster as to:

2010-11 40%
2011â€"12 50%
2012â€"13 60%.

“Qualifying†is defined as players who have been registered with the FFR for at least five years before turning 21, or have spent three seasons in an FFR-approved training centre if they are currently under 21.

Anyone care to comment how, for instance Toulon or Perpignan, could stay within this salary cap where and if the reports that JW is paid about 1 million and Dan Carter was reputed to be paid 1.25 million, are true and many teams' squads are packed with expensive star players?

I know that the French law originally allowed 30% of salary to be treated as image rights and not liable to NIC etc but this was withdrawn a few years back…….

Are image rights outside of this cap and does it include, as it would in UK Taxation terms, benefits in kind such as accommodation provision, free cars etc?

I think that the restriction on overseas players is fascinating and wonder how this meets EU regulations about free movements of labour?

What size is the squad, for instance of Toulon for 2012-13 if their “Non Qualifying†players total only 40% of their squad? Anyone got any idea how this all works?

I know that the Irish Union have brought some restrictions in as regards certain positions but have any of the other home Unions considered similar or should they?
 

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