Prem Rugby confirms major change to salary cap rules amid expansion plans
Clubs will now have to meet a minimum spend as the league looks to add two new teams by 2030
Prem Rugby clubs will be required to meet a minimum salary cap spend of £5. 4m under new plans to expand the league’s commercial profile and competitiveness. The English top-flight is moving away from a traditional promotion and relegation model to an expansion league , with expressions of interest and a tender process opening next season as it works towards a goal of adding two new teams by 2030.
As part of that move, the existing 10 clubs in the Prem will have to meet a “salary floor” in a drive to ensure close competition across the division while ensuring financial sustainability. The move comes with the Prem actively seeking investment into both existing sides and possible new franchises, and follows major moves by Red Bull at Newcastle and James Dyson at Bath in recent months. The salary cap is currently set at £6.
4m, with a number of credits and exclusions meaning clubs can spend up to £7. 8m plus one excluded player salary. While a number of clubs in the league spend close to the cap, some others are understood to currently fall short of the £5.
4m figure. While the salary floor still needs regulatory approval, it has been approved in principle by clubs following a consultation process. It will be introduced next season, although clubs will not be punished for failing to meet it until the 2029/30 season.