Welsh clubs agree salary caps

Rugby: The four Welsh regions could lose more players to France after it was announced they will operate under a salary cap …

Rugby:The four Welsh regions could lose more players to France after it was announced they will operate under a salary cap from the start of next season as part of a landmark agreement designed to deliver long-term sustainability in the professional game in the country.

The salary cap of £3.5 million (€4.2 million) will cover the players registered for European competition by the Ospreys, Cardiff Blues, Scarlets and Newport Gwent Dragons, but does not include development players or academy costs. It is hoped that the cap will lead to a greater emphasis on developing the next generation of Wales-qualified players.

"The regions have come together with a shared sense of responsibility to get their own houses in order and find solutions," explained the WRU’s regional chairman Stuart Gallacher. "This agreement is the start of that journey. They are eager to do all they can to achieve greater self-sufficiency and our governing body the WRU has been wholly supportive of and endorsed the initiative we have taken.

"This is a powerful signal of our determination to achieve our aims amidst some tough economic challenges in Wales now and in the future. All four regions are working very hard indeed to manage their businesses more effectively in a very difficult environment for everyone.

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"As part of that, it is essential that every element of the circa £30m annual costs involved with operating four professional rugby businesses in European competition, is examined in detail and managed effectively.

"The introduction of this agreement and the European squad salary cap illustrates pragmatic and responsible action in tough times. Nobody will make light of the challenges ahead but initiatives like this new salary cap must give our rugby supporters renewed confidence in our ability to move with the times, be decisive and make a stand with cohesion and a shared vision and united spirit."

Lee Byrne, Mike Phillips and James Hook all left the Ospreys at the end of last season to join Clermont, Bayonne and Perpignan respectively while Gethin Jenkins, Adam Jones and Luke Charteris have also been linked with moves to France’s Top 14.