OCT 16:
COUNCIL MEETING
14 OCTOBER 2016
PAYMENT OF PLAYERS
1.
Club sustainability is becoming an increasing concern across the game with many clubs
reporting a major challenge in remaining both competitive and financially viable in domestic
rugby competitions. Financial pressures and the desire to remain competitive through
financial inducements (i.e. player payments) are increasingly raised as contributing factors to
this and is causing erosion of some of the traditional strengths of club rugby volunteering,
club loyalty and ability to sustain inviting and welcoming club facilities.
2.
This theme has come through strongly in recent club and CB roadshows and in the
consultation wit
competition, in which a strong desire was expressed for the RFU to review the situation.
3.
Since the advent of professionalism in 1995 Rugby Union in England has become an open
game and, assuming HMRC regulations are complied with and contracted players are
registered, there is nothing in current regulations to stop players being paid at any level of the
game. Calls for the RFU to take action to change this have been made and in response the
RFU committed to the establishment of a review group to examine the current situation in
more detail, to take views and to recommend (if appropriate) any changes to the current
position.
4.
The working group was chaired by Malcolm Wharton and consisted of the following: Steve
Grainger, Adriaan Posthuma (CB Chairman
Yorkshire), Nigel Gillingham (Chairman of
Game Development Sub Committee), Chris Cuthbertson (Council member for Middlesex) ,
Neil Hagerty (Chairman of Club Development Sub Committee), Norman Robertson (NCA),
Nigel Heslop (CB Chairman Surrey), John Cartwright (Club Representative Lymm RFC
Level 5), Mark Dyche (Club Representative
Whitchurch RFC
Level 6 (Level 7) when
working group met), Paul Bedford (Independent
England & Wales Cricket Board), Ed
Warner (Independent Chair, UK Athletics), Rob Walker (Ernst & Young), Trevor Nicholson
(Club representative Sevenoaks RFC Level 6 (Level 7) when working group met), Brian
Moore (Ex Player).
5.
The working group met on a number of occasions and initially intended to report in the
summer of 2014. However, this was delayed until all aspects of the Adult Competition Review
were finalised.
not prove any easy subject on which to reach agreement and the views of the group stretched
e
concerns of the group about the payment of players are categorised as follows:
a.
An uneven playing field
clubs with capacity to pay players disrupting the local
and undermine club loyalty.
b.
A lack of sustainability within clubs utilising scarce resources to pay players and often
unable to maintain and modernise facilities and invest in the wider development of all
players in the club.
c.
Clubs having an increased exposure to employment legislation and HMRC
regulations.
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6.
The majority view within the group was that the RFU should take action to control the
payment of players in the community game. It was also the view that it was not feasible or
affordable to control this entirely by regulation and regular review by the RFU. Instead a
system of self-declaration, supported by regulation for incorrect, false or misleading
information, was considered to be the way forward. There was also acceptance that, as
promotion and relegation between leagues remains an integral part of the game, there is a
need to allow clubs to prepare for the point at which they may enter the professional level of
the game where payment of players is necessary. Consequently, the group has developed a set
of recommendations for consideration.
7.
The recommendations have been seen and agreed by the Community Game Board (8 th
September), by the Governance Standing Committee (14th September) and the Board of
Directors (28th September). The Board of Directors agreed that the recommendations are
presented to Council for discussion at its meeting on October 14 th prior to a more formal vote
being taken at the December 2nd meeting.
8.
The principles can be summarised as:
8.1 The RFU makes a clear statement that it believes payments for playing Rugby in the
community game are having a detrimental effect on the game
8.2 Guidance amounts to be set for maximum payments at Levels 3, 4 and 5 with payments at
Level 6 and below at zero (with the exception of one player coach)
8.3 Clubs will be free to exceed the maximum payments and to still pay at level 6 and below
however in doing so will render them ineligible for RFU financial support
8.4 Clubs will be required to submit an annual declaration stating whether they make
payments to players and if so to what extent. This will need to be signed by four key personnel
from the club.
9. Further details relating to financial ranges, compliance, implications etc are set out, in draft,
in appendix one. A working draft of the declaration is attached as appendix two. Additional
work will be undertaken on these once the principles are agreed including future
clubs.As an illustration of the impact in relation to travel funding Appendix 4 shows the
funding paid at levels 3, 4, and 5 in 2015/16 totals and ranges at levels 4 & 5 and full details
at level 3
10. Timescales and Process
14 October
2 December
February 2017
April 2017
September 2017
May 2019
Season 2019-20
Principles to Council for discussion
Principles to Council for approval
Implementation documentation and regulations agreed by Governance
Final approval by Council of Regulations and supporting documentation
Communication to the game
Declaration requested based on payments made in 2018/19 season
Implementation begins based on 2018/19 signed declaration
FOR DISCUSSION
Council is asked to review and discuss this paper along with the principles outlined within it.
Author:
Date:
Malcolm Wharton and Steve Grainger
October 2016
APPENDIX ONE FURTHER DETAIL ON PRINCIPLES AND PROCESS
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A.
RECOMMENDATIONS OF PRINCIPLES
1.
RFU proposed statement on the payment of players:
playing Rugby in the Community Game are
having a detrimental effect on the ethos of the game and the development of some clubs.
Consequently it believes that there should be no payments for playing at Level 6 and below
(apart for an element towards 1 player coach), with a guideline range for paying players
between levels 3 and 5, and associated measures for those who choose to pay more than the
This does not preclude clubs from paying players and clubs can exceed these thresholds but in
doing so will lose entitlement to RFU funding (see point 6 below)
2.
Ranges: Indicative gross payments to players at 2016/171 including all employment costs
and anything classed as Benefit in Kind
Level 3 - £150 0002
Level 4 - £100 0003
Level 5 - £50 0004
(Clubs at Level 3 - 5 permitted to employ a maximum of 2 player coaches
payment to be included in the above thresholds)
50% of
Level 6 and below an amount to be included to allow for the playing element of one
player coach (this amount to be decided and agreed)
In setting these figures the group had to balance its concerns about the payment of players in
the community game against allowing clubs to prepare to enter the professional game a Level
2, the Championship, where there is no salary cap.
Please note that the above figures are indicative only at this stage and will be subject to review
on an annual basis.
3.
Exceptions:
Legitimate expenses as allowed under HMRC guidelines
Provision of reasonable amounts of playing kit
Provision of medical support/physi0
4.
Basic Compliance
Full compliance with HMRC processes/rules
Full compliance with Home Office visa requirements
All clubs to submit annual declaration signed by 4 club officials (Treasurer, Chair,
Secretary and President)
5.
Declaration
Full amount of any payments or material benefits made to players
Statement on any players employed in another capacity by the club e.g. bar staff,
ground staff (to include name, role, average number of hours per week and amount)
1
These figures will need to be subject to annual review to ensure they remain relevant.
This would allow a club to pay 23 players £150 per match for up to 35 matches per season with an allowance of 14% for
employers costs (NIC etc).
3 This would allow a club to pay 23 players £100 per match for up to 35 matches per season with an allowance of 14% for
employers costs (NIC etc).
4 This would allow a club to pay 23 players £50 per match for up to 35 matches per season with an allowance of 14% for
employers costs (NIC etc).
2
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Statement on any other payments or material benefits made to players to play rugby
by any other agencies e.g. sponsors, individuals
6.
Compliance and implications
Clubs failing to complete and submit a declaration will result in loss of entitlement to
RFU funding.
Clubs submitting an incorrect or false or misleading declaration or accounts will be
subject to potential 5.12 charges which shall be dealt with under RFU Regulation 19
and sanction shall be at large (i.e. at the discretion of the panel).
Loss of entitlement to funding may include: (this list is not exhaustive and will be
worked up further prior to final approvals)
o
o
o
o
o
o
o
B.
Travel funding
RFU and RFF Loans and Grants for Facilities
Supplemental Ticket Fund
AGP host club
Subsidised use of RFU AGPs
any other RFU cash grants or such other loans/grants/projects as decided by
the RFU (including those associated with sponsor programmes
e.g. O2
Touch, All Schools, NatWest Rugby Force)
further considerations to be worked up regarding repayment of any grant/loan
during a defined period for clubs. (eg a club that has received grant funding for
floodlights in year 2 and then provides a declaration in the following year that is
above the threshold)
PROCESS
14 October
2 December
February 2017
April 2017
September 2017
May 2019
Season 2019-20
Principles to Council for discussion
Principles to Council for approval
Implementation documentation and regulations agreed by Governance
Final approval by Council of Regulations and supporting documentation
Communication to the game
Declaration requested based on payments made in 2018/19 season
Implementation begins based on 2018/19 signed declaration
C. IMPLEMENTATION PROPOSALS
The key implementation mechanism will be the regulations, declaration and funding conditions. Set
out below are some ideas of how recommendations could be implemented if the principles are agreed.
Regulations
Regulations to be amended to include the following principles:
a)
All clubs at Level 3 and below
clubs) playing in the RFU
Leagues will be required to submit an annual declaration every year, to include the
newly relegated Level 2 club.
b)
Submission of declaration will be mandatory regardless of whether a club is paying players or
player coaches or not.
c)
Submission of completed declaration by a defined date after the end of the season eg 31 May
2019 for a retrospective view of that season. Therefore, the figures for the 2018-19 season will
determine if a club qualifies for funding in the subsequent season and so on.
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d)
Submission of declarations should be to a central RFU point, with a copy to the CB or NCA as
applicable.
e)
Submission could be done via GMS by clubs uploading the signed declaration onto GMS. The
IT Department has confirmed that this is possible although there would be a cost implication.
f)
We propose that the RFU has the general power, to:
i.
ii.
Request that club supply such accounting/financial information and documents as they
so require
; and
Audit its club and carry out spot checks upon reasonable notice (or to instruct a third
party to do so on its behalf).
g)
We propose that the above general power together with the declaration replaces the current
ongoing obligation for all clubs to provide financial statements every year. Instead, each
CB/NCA could decide what financial obligations it wishes to impose on its local clubs by using
the power set out in h).
h)
We propose to include a regulation stating that breach of the regulations, persistent breaches
or providing false or inaccurate information would be dealt with pursuant to Rule 5.12 and
sanction shall be at large (i.e. any such sanctions as the panel considers appropriate).
i)
Include regulation to make it clear that non-compliance or paying outside the thresholds will
j)
Lastly, it is likely that the definition of Material Benefit set out in Regulation 7.3 will need to
be reviewed.
1.
Declaration (see Appendix 2)
It is proposed that the declaration includes the following key areas:
Name of club and any associated entities.
season, whether directly or indirectly.
player coaches in the current
Statement on any players employed in another capacity by the club e.g. bar staff,
ground staff (to include name, role, average number of hours per week and amount).
Confirmation as to whether inside or outside of the thresholds.
Self-certification that club has complied with its various statutory obligations and
liabilities in relation to PAYE, NI and VAT.
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Self-certification that club has complied with its various other legal and immigration
law obligations.
Declaration to be signed by four club officials to include chairman, president,
treasurer and honorary secretary.
Guidance notes to accompany declaration, which will include table of thresholds,
definition of material benefit and will cross-reference with other supporting materials
etc.
2.
Funding Conditions
All funding documentation will need to be amended to state that payment is conditional upon
compliance with the regulations, and in particular submission of the declaration within the
regulatory timeframe.
All funding documentation will need to be amended to state that eligibility for funding can be
lost if declaration is found to be false, misleading or incorrect, including mechanism for claw
back of paid funding.
Finance Department to check and chase declarations prior to issuing funding.
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APPENDIX TWO
DRAFT CLUB DECLARATION FOR PLAYER PAYMENTS
RFU STATEMENT ON PAYMENT OF PLAYERS:
playing Rugby in the Community Game are having a detrimental effect on the ethos of the game
and the development of some clubs. Consequently it believes that there should be no payments
for playing at Level 6 and below (apart for an element towards 1 player coach), with a guideline
range for paying players between levels 3 and 5, and associated measures for those who choose
to pay more than the guideline amounts and who to choose to pay anything at Level 6 and
Pursuant to RFU Regulation [ ] [include hyperlink], all clubs playing in the RFU Leagues at
Level 3 and below are required to complete and submit this annual declaration by no later
than 31 May 2019 (or predetermined date to be set following the end of the season).
Please submit the completed declaration to [insert details]
The declaration must be signed by all four club officials including the chairman, president,
treasurer and honorary secretary.
Club Name:
Name of any affiliated entities
associated with the Club (i.e.
subsidiaries, trading companies
etc)
Level of Club
Legal status of Club (i.e.
Company limited by shares, by
guarantee, CASC, other charitable
status)
Main contact person
Primary contact number
We, the signatories to this declaration, confirm the following:
(a) No player or player coach of the Club receives any Material Benefits for playing rugby for the
Club, whether directly or via a third party. (see Appendix 3 for guidance and definitions)
Yes/No [insert tick box]
If Yes, paid by whom?( i.e. club, affiliate, sponsor): [insert payer(s)]
If yes, please indicate TOTAL value of payments (including all PAYE, NIC and P11D payments
to HMRC) paid to players and coaches in this 2018/19: [insert figure]
(b) No player is engaged in another capacity by the Club or third party associated with the Club
except as disclosed below.
Yes/No [insert tick box]
If Yes, paid by whom?( i.e. club, affiliate, sponsor): [insert payer(s)]
If Yes, insert following details for each individual:
i)
ii)
iii)
[Name, Role, average hours per week, amount paid per week]
[Name, Role, average hours per week, amount paid per week]
[Name, Role, average hours per week, amount paid per week]
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(c) We understand that any direct or indirect payments to players that total an amount in excess
of the maximum guidelines (see out in Appendix 1) will render our Club ineligible for RFU
and RFF funding (such as facilities loans and grants, Supplemental Ticket Fund, AGP host
club, subsidised use of RFU AGPs, any other RFU cash grants including those associated with
sponsor programmes e.g. O2 Touch, NatWest Rugby Force, travel funding, cup or league
participation payments) until such time as either;
Our club enters a level of rugby at which the guideline maximum payment amount increases
above our current level of player payments and we can evidence to the RFU
that we fall
within the maximum guideline for the level into which we have been promoted; or
Our club ceases to pay players (for one full season) an amount that is above the
applicable
guideline maximum payments for that level and we can evidence to the RFU that we fall
within the maximum guideline for the level in which we play.
(d) We confirm that any payments made to players and player coaches, directly or indirectly, in
any form, are compliant with English Law requirements (including existing HMRC
regulations) and that all relevant payments PAYE, NI and P11D have been made to HMRC as
applicable
(e) We agree to provide upon the request of the RFU, our local Constituent Body or NCA (if a
Level 3 or 4 club):
Such accounting and financial information and documents as requested, including a copy of
Access to a RFU representative (or appointed agent) to conduct an audit and spot checks upon
reasonable notice.
THIS DECLARATION MUST BE SIGNED BY ALL INDIVIDUALS REFERENCED
BELOW. BY SIGNING THIS DELARATION, YOU HEREBY CONFIRM THAT THE
INFORMATION AND STATEMENTS SET OUT HEREIN ARE TRUE AND ACCURATE.
ANY FALSE OR MISLEADING DECLARATION MAY CONSTITUTE A BREACH OF RFU
REGULATION AND BE SUBJECT TO DISCIPLINARY ACTION IN ACCORDANCE WITH
RFU REGULATION 19.
CHAIRMAN
Name:
Signature:
Date:
TREASURER
Name:
Signature:
Date:
PRESIDENT
Name:
Signature:
Date:
SECRETARY
Name:
Signature:
Date:
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APPENDIX 3 to Declaration - Guidance Notes
Guideline maximum total payments for clubs playing at Level 3 and below in the RFU Leagues
Club Level in RFU Leagues Max total payments
3 £150,000
4 £100,000
5 £50,000
6 and below an amount to be included to allow for the playing
element of one player coach (this amount to be
decided and agreed)
(Clubs at Level 3 - 5 permitted to employ a maximum of 2 player coaches
included in the above thresholds.)
50% of payment to be
IS DEFINED AS FOLLOWS:
money, consideration, gifts or any other benefits whatsoever contracted, promised or given to
a person or at his/her direction, but does not include reimbursement of proper expenses
incurred for reasonable travel, accommodation, subsistence or other expenses incurred in
relation to the Game and as particularised in RFU Regulation 7.3.
RFU REGULATION 7.3 SETS OUT AS FOLLOWS:
7.3.1
The following expenses only will fall outside the definition of Material Benefit:
(a)
Mileage - A mileage allowance based on the HMRC rates from time to time will be
allowed based on an internet based route finder/distance software package (e.g. Google
Maps or the AA) currently recognised by the RFU for measure of distances for the
journey to and from matches or squad sessions.
(b)
Accommodation - Cost of overnight accommodation limited to Bed, Breakfast and
evening meal will be allowed when considered necessary to enable the Club to play in or
compete effectively in a Club match or exceptionally as specifically authorised on each
separate occasion to take part in a squad session provided the cost on each occasion is
d be produced. For the avoidance of
doubt, this does not include the provision of accommodation to a player or on his behalf
on any other occasion.
(c)
Meals - Subject to the production of satisfactory receipts not more than £25.00 per day
may be reimbursed to players to cover the cost of food when traveling to or from
matches or squad sessions.
(d)
Rail travel - Rail travel should be Second Class unless First Class is agreed with the
ed before
reimbursement.
(e)
Air travel - Cost of internal UK Air Travel will only be accepted if authorised by the
(f)
The reimbursement of taxi fares and/or the hire or provision (or contribution to the cost
of hire or provision or driving) of a motor vehicle (other than payment of mileage
allowance as set out in (a) above) to a player will only be accepted as an allowable
expense if it is the most economical means of travel to and from a match or squad
session and is authorised by the
Note: Clubs that are registered as CASCs should be aware that HMRC will not permit
them to pay mileage or travel expenses to and from home matches or squad sessions but
only to and from away matches. Meal and accommodation expenses may not be paid by
CASC clubs. All that may be provided is the reasonable provision of post-match
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refreshment
TO BE UPDATED.
DRAFTING COMMENT: this section will be reviewed to ensure it is updated and fit for purpose
APPENDIX 4 TRAVEL PAYMENTS
National 1 travel payment for 2016/17
Ampthill
Blackheath
Blaydon
Cambridge
Coventry
Darlington M P
Esher
Fylde
Hartpury College
Hull Ionians
Loughborough Students
Macclesfield
Moseley
Old Albanians
Plymouth Albion
Rosslyn Park
Total Paid
£6,733
£10,441
£18,046
£8,822
£5,639
£14,726
£9,784
£14,396
£8,770
£9,900
£6,021
£8,387
£6,382
£8,601
£22,958
£9,782
£169,388
The average payment in National 2N is £4,786, ranging from Sheffield Tigers RUFC (£2,723) to
Luctonians RFC (£7,948).
The total travel for this league is £76,582.
The average payment in National 2S is £8,861, ranging from London Irish WG RFC (£5,389) to
Redruth RFC (£20,323).
The total travel for this league is £141,776.
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