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Premiership to freeze salary cap

Northampton's James Downey is tackled by Leicester's George Chuter
Northampton and Leicester are two of three clubs who made a profit last year

The Guinness Premiership's salary cap will remain at £4m for each club following a meeting of member teams.

A cut of £500,000 had been proposed to help clubs threatened by the economic downturn, but it will remain at its current level for the next two seasons.

The Premiership will also remain at 12 teams and the number of fixtures will increase to help generate more income.

Premier Rugby, the umbrella body for the 12 clubs, is yet to decide how many and when extra games will be played.

The salary cap was introduced in the late 1990s and was increased from £2.2m per club to £4m ahead of the current season.

It has been predicted that England's leading clubs will lose between £12m and £20m this season, with Gloucester, Leicester and Northampton the only Premiership clubs to make a profit last season.

"In order to maintain the salary cap at the current level, avoid salary cuts and maintain jobs, Guinness Premiership fixtures must be increased, particularly over strong periods for the clubs and their supporters, such as Christmas and New Year.

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"It is essential for the clubs to have a regular programme of Guinness Premiership fixtures that are highly regarded by our players and supporters and deliver regular high quality, great value matches to our supporters and other partners."

Any games on top of the existing schedule would require consultation and agreement from the Rugby Football Union under a new long-term deal thrashed out last year.

The new proposals will be discussed further by the Premier Rugby board on 20 January and then finalised in the coming weeks.

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see also
Premiership ponders wage cap cut
17 Dec 08 |  Rugby Union
Championship plan gains support
14 Nov 08 |  English
Saints expect end of salary cap
16 Sep 08 |  Northampton


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