Prem clubs agree minimum spend on player wages
Prem clubs have agreed to introduce a 'salary floor' - a minimum amount each team must spend on players' wages - from next season in an attempt to keep the top flight as closely fought as possible. Each club will be obliged to spend £5. 4m a season on talent.
The salary cap - a £6. 4m limit on squad spending, albeit with 'credits' on offer for home-grown talent and other factors which stretch the restriction to £7. 8m - will remain the same.
Failure to spend up to the salary floor will be punished by a fine equivalent to the difference between a club's squad spend and the lower limit, incentivising clubs to invest in their squads. Several clubs are likely to need to pay more to meet the new lower figure. Last season, Bristol boss Pat Lam estimated that eventual champions and the Bears' semi-final conquerors Bath spent "close to £3m more than we have on our squad".
, external While bottom side Newcastle have brought in a raft of new players since energy drink giant Red Bull took over in August, they are still thought to be well short of a £5. 4m wage bill. While such prescriptions over squad spending are rare in UK sport, they are more common overseas.
The NRL, Australia's elite rugby league competition, requires its clubs to spend at least 95% of its salary cap figure. In American Football's NFL, it is set at 90%. Prem Rugby hopes that, with relegation to be formally scrapped next season, greater payroll parity will improve the competitive balance of the top flight.