Operational Rules


Section E1: Super League Salary Cap Regulations

Appendix 2

Table of Contents

Article Section
1.0 Purpose, Scope and Application
2.0 Interpretation and Definations
3.0 Salary Cap Offences

4.0

Initial Assessment of a Club's Aggregate Liability
5.0 Calculating the Salary Cap Value of a Player
  A. General Principles
  B. Items that must be included in the calculation of the Salary Cap Value of a Player
  C. Items that may be excluded from the calculation of the Salary Cap Value of a Player
  D. Miscellaneous provisions
6.0 Ongoing Assessment of a Club's Aggregrate Liability
7.0 Monitoring Compliance
  A. The Compliance Team
  B. Club's Reporting Obligations
  C. The Compliance Team's Audit Powers
  D. Requests for Clarification
  E. Investigations/Case to Answer
  F. Data Protection
8.0 Review of the RSCM's Decisions
9.0 Sanctions
10.0 Challenges to a Decision or these Regulations
   
Appendix Section
1 Definitions
2 Transactions or Conduct that may affect a Club's Aggregate Liability 
3 Aggregate Liability Statement
4 Registration Request Form
5 Monthly Management Report
6 Salary Cap Return Certificate (Half-Year)
7 Salary Cap Return Certificate (Full-Year)

 

Super League Salary Cap Regulations

E1:1:1

Purpose, Scope and Application

The RFL has adopted these Salary Cap Regulations (the "Regulations") in order to regulate the value of playing talent available to each Club participating in the league competition managed by the RFL and currently known as the Super League. The overriding purpose of the Regulations is to protect and promote the long-term health and viability of the game of rugby league. Within that overriding purpose, the specific objectives are:
1.1.1 to protect the integrity of the Super League competition by ensuring that the determinative factor in the sporting outcome is on-field sporting merit and not off-field financial considerations;
1.1.2 to ensure that the Super League competition remains competitive and therefore attractive to spectators and commercial partners by preventing Clubs with greater financial resources dominating the competition and by ensuring a balanced spread of Players among the participating Clubs;
1.1.3 to protect and nurture a broad competitive playing structure by preventing Clubs trading beyond their means and/or entering into damaging and unsustainable financial arrangements; and
1.1.4 by means of the foregoing, to protect the welfare and interests of all Players participating in the Super League competition and of all those aspiring to participate in the Super League competition.

E1:1:2 The Regulations shall be deemed to have come into full force and effect on 1 December 2007. They represent a significant change from the approach taken under predecessor salary cap regulations, in that compliance is now to be monitored on a ‘live’ and ongoing basis, enabling breaches to be investigated, determined and sanctioned without delay. The Regulations therefore shall not be applied retrospectively to matters arising prior to 1 December 2007. Instead, such pre-existing matters and historical breaches will be dealt with (including as to the applicable sanctions for breach) by the salary cap regulations that applied during the 2007 playing season.


E1:1:3 Where breaches of the Regulations (or any subsequent versions thereof) are discovered to have taken place after 1 December 2007, such breaches will be dealt with (including as to the applicable sanctions for breach) by the salary cap regulations that applied at the relevant time.

E1:1:4 The Regulations shall apply to all Persons subject to the Operational Rules, including (without limitation) all Clubs, Club Officials, Players, Licensed Agents and any other Party participating in any capacity in any events or other activities organised, convened or authorised by the RFL, whether or not such Party is a citizen of or resident in the United Kingdom. Such Parties shall be deemed to have agreed:
1.4.1 to be bound by and to abide strictly by the Regulations;
1.4.2
to submit to the authority of the RFL and any member of the Compliance Team to adopt, apply, monitor and enforce the Regulations;
1.4.3
to provide all requested assistance to the RFL and/or any member of the Compliance Team (by delegation from the RFL) in the application, monitoring and enforcement of the Regulations, including (without limitation) by cooperating fully with any investigation or proceedings conducted pursuant to the Regulations;
1.4.4
to submit to the jurisdiction of any Operational Rules Tribunal convened to hear and determine charges brought pursuant to the Regulations;
1.4.5
to submit to the jurisdiction of any Operational Rules Appeal Tribunal convened to hear and determine appeals made pursuant to the Regulations; and
1.4.6
further to Clause 10 of these Regulations, not to bring any proceedings or claim in any court or other forum that is inconsistent with the foregoing submission to the jurisdiction of the Operational Rules Tribunal and the Operational Rules Appeal Tribunal.

E1:1:5 The RFL may amend the Regulations as appropriate from time to time. Any such amendments shall be approved and shall come into effect immediately in accordance with Article 96 of the Articles of Association of RFL (Governing Body) Limited. All Parties to whom the Regulations apply (including, without limitation, the Clubs) shall be deemed to be bound by the amended Regulations from that point.

E1:1:6 The Regulations set out the principles and requirements of the RFL’s salary cap system only. Compliance with the Regulations should not in any way be taken to mean that a Party has complied with its legal obligations to or in respect of other parties (for example, in respect of a Club’s employment law and/or taxation obligations). In addition, compliance with the Regulations does not necessarily mean that a Party has complied with the other provisions of the RFL’s Operational Rules or the RFL’s Standard Player Agreement.

Interpretation and Definitions

E1:2:1 The Regulations are to be interpreted and applied by reference to, and in a manner that advances, their overriding purpose and specific objectives, as detailed in Clause 1.1, including but not limited to when an issue arises that is not expressly provided for in the Regulations. Such interpretation and application shall take precedence over any strict legal or technical interpretations of the Regulations that may otherwise be proposed.

E1:2:2 Capitalised terms used in these Regulations shall have the meaning given to them in Section One of the Operational Rules or (where not defined there) in Appendix 1 to the Regulations.

E1:2:3 Save where otherwise stated, references to Clauses and Appendices are to clauses and appendices of the Regulations.

E1:2:4 The commentary and examples set out in italicised text in the Regulations are not operative provisions, but are included to assist in the interpretation and application of the Regulations.

E1:2:5 Nothing in the Regulations shall require any financial statements, reports, audits, accounts or any other documentation to be prepared or any accounting practice to be followed other than in a manner consistent with generally accepted accounting and taxation principles.

Salary Cap Offences

E1:3:1 A failure to comply with any of the following requirements will constitute a “Salary Cap Offence”:
3.1.1 A Club must ensure that, at any time during the Salary Cap Year, its Aggregate Liability does not exceed:
(a) for British based clubs, £1,825,000 (One Million Eight Hundred and Twenty Five Thousand Pounds) (or such amount as determined prior to the Salary Cap Year in question by a majority vote of the British clubs), or

(b) for clubs based in a country with the Euro as its currency, €2,300,000 (Two Million Three Hundred Thousand Euros) (or such amount as determined prior to the Salary Cap Year in question by the Board of Super League Europe Limited whose decision and brief reasons will be circulated to all Super League clubs).
A Club’s “Aggregate Liability” is calculated by adding together the respective Salary Cap Values of the Club’s Players at the given time in question.
A Club’s “Players” are the 25 Players registered with the Club and eligible to play in the Super League who have the highest Salary Cap Values at the time in question, whether or not they have played for the Club in a Salary Cap Relevant Match in the Salary Cap Year to that date, in addition to all other players at the club who will or do play in a Salary Cap Relevant Match.
Comment to Clause 3.1.1(b): For example, a Club’s list of Players at any given time in the Salary Cap Year might read as follows:













Club Salary Cap Ranking Player's Name Salary Cap Value
1 Mr A £100,000
2 Mr B £95,000
3 Mr C £90,000
4 Mr D £85,000
... .... ...
23 Mr X £7,500
24 Mr Y £7,000
25 Mr Z £6,500
26 Mr ZA £5,000
Club's Aggregate Liability £1,580,000





(c) Failure to comply with Clause 3.1.1 is a Strict Liability Offence.
(d) A Club may seek prior dispensation in writing to the RSCM to exceed the Aggregate Liability by a specified amount. In making a decision, the RSCM will act reasonably, taking into account one or more of the following factors:
(i) the Club’s Players being unavailable through injury, absence and/or termination,
(ii) the Club’s intention to promote junior players who would otherwise be prevented from playing in a Salary Cap Relevant Match,
(iii) player welfare (for example, where a Club would otherwise be prevented from playing a Player in a situation that means that the Club instead selects an injured Player to play or another Player whose Salary Cap Value is low enough for the Club to remain within the Cap but who might not be ready for 1st team duties, and
(iv) other circumstances considered reasonable (by the RSCM, acting reasonably).

Comment to Clause: In order to encourage investment by Clubs in junior, academy and scholarship structures, the Regulations do not restrict in any way the amount that Clubs may spend on (or to support the development of) Players who do not have one of the top 25 Salary Cap Values at the Club and who have not represented the Club in a Salary Cap Relevant Match in the Salary Cap Year in issue.



3.1.2 A Club must complete and submit to the RSCM in a timely fashion the forms, reports and certificates described in Clauses 4.1.1, 7.3.1, 7.3.2 and 7.4.
(a) The purpose of the Regulations cannot be achieved without ongoing monitoring of each Club’s compliance with the Regulations. Ongoing monitoring of each Club’s compliance with the Regulations is only possible if all Clubs complete and submit to the RSCM in a timely fashion the forms, reports and certificates identified in Clauses 4.1.1, 7.3.1, 7.3.2 and 7.4.
(b) Failure to comply with Clause 3.1.3 is a Strict Liability Offence.

3.1.3 Any information provided to the RSCM or any member of the Compliance Team pursuant to the Regulations must be accurate and complete.
(a) It is a breach of Clause 3.1.4 to provide information to the RSCM or any member of the Compliance Team pursuant to the Regulations, whether orally or in writing, which is inaccurate or incomplete.
(b) Failure to comply with Clause 3.1.4 is a Strict Liability Offence.

3.1.4 A Club must obtain the express written approval of the RSCM prior to committing itself to any transaction, or conducting itself (by act or omission) in a manner which varies the Club’s Aggregate Liability in the relevant Salary Cap Year.
(a) The ‘live’ and ongoing monitoring of compliance is only possible if the requirement of pre-approval of such transactions/conduct is respected. Accordingly, it is the failure to obtain such pre-approval that is a Salary Cap Offence, irrespective of the consequences of such failure. Accordingly, it is not necessary to demonstrate that the transaction or conduct in question increased the Club’s Aggregate Liability in the relevant Salary Cap Year in order to establish a breach of Clause 3.1.5; nor, would proof that the transaction or conduct actually lowered the Club’s Aggregate Liability in the relevant Salary Cap Year constitute a valid defence to a charge of breach of Clause 3.1.5.
(b) For the avoidance of any doubt, where a Club fails to obtain pre-approval for a transaction or conduct which increased the Club’s Aggregate Liability in the relevant Salary Cap Year in a manner that caused a breach of Clause 3.1.1 and/or 3.1.2, then such failure to obtain pre-approval will be treated as a separate and additional Salary Cap Offence for which the Club may be separately sanctioned.
(c) Failure to comply with Clause 3.1.5 is a Strict Liability Offence.

3.1.5 Each Party must cooperate fully and without delay with any audit or investigation conducted by any member of the Compliance Team in relation to matters arising under the Regulations.
(a) Ongoing monitoring of compliance with the Regulations is only possible if all Parties cooperate fully with any investigation or audit conducted by any member of the Compliance Team. This obligation includes (but is not limited to) the obligation to answer fully and without delay any request(s) for information made pursuant to Clauses 4.2.3, 7.2, 7.5, 7.6 and 7.9.
(b) Failure to comply with Clause 3.1.6 is not a Strict Liability Offence. In other words, intent, knowledge, negligence or other fault must be demonstrated in order to establish a breach of Clause 3.1.6.

3.1.7 Each Party who is subject to the Regulations must not assist, encourage, aid, abet, cover up, or have any other type of complicity in, any breach by any other Party of any of Clauses 3.1.1 to 3.1.6 (inclusive).
(a) Failure to comply with Clause 3.1.7 is not a Strict Liability Offence. In other words, intent, knowledge, negligence or other fault must be demonstrated in order to establish a breach of Clause 3.1.7.

E1:3:2 Any Attempt to commit a breach of any of Clauses 3.1.1 to 3.1.7 (inclusive) shall be treated as an actual breach of the relevant Clause.

Initial Assessment of a Club’s Aggregate Liability

E1:4:1 Each Club must submit to the RSCM, on or before 1 November preceding the relevant Salary Cap Year:
4.1.1 a completed version of its Aggregate Liability Statement (attached at Appendix 3), which identifies the Club’s Players and sets out the Club’s calculation of each such Player’s Salary Cap Value (in accordance with the principles set out in Clause 5) and therefore of its proposed Aggregate Liability as at the commencement of the Salary Cap Year; and
4.1.2 any supporting materials (such as playing contracts, image rights contracts, EBT documentation, receipts, invoices etc) relied upon by the Club in its identification of its Players and in its calculation of each such Player’s Salary Cap Value as at the commencement of the Salary Cap Year.

E1:4:2 As soon as is reasonably practicable following the Club’s submission of its completed Aggregate Liability Statement the RSCM will review the information contained therein (and any supporting materials submitted by the Club) and notify the Club either:
4.2.1 that he agrees with the Club’s calculations in its Aggregate Liability Statement in which case such calculations will be deemed to identify the Club’s Players and their respective Salary Cap Values and therefore the Club’s Aggregate Liability as at the beginning of the Salary Cap Year; or
4.2.2 that he disagrees with the Club’s calculations, in which case the RSCM will provide the Club with:
(a) brief written reasons for his disagreement with the Club’s calculations; and
(i) a revised version of the Club’s Aggregate Liability Statement, which (subject strictly to the Club’s right to review under Clause 8) will be deemed to identify the Club’s Players and their respective Salary Cap Values and therefore the Club’s Aggregate Liability as at the beginning of the Salary Cap Year; or
(ii) (where the RSCM’s calculations demonstrate that the Club’s Aggregate Liability would put it in breach of Article 3.1.1 of the Regulations at the beginning of the Salary Cap Year) an instruction that the Club make the necessary arrangements to adjust the Club’s Players and their respective Salary Cap Values accordingly and submit a revised Aggregate Liability Statementto the RSCM within seven days.
(c) notice of the Club’s right to have the RSCM’s decision reviewed by the Chairman of the Operational Rules Tribunal (or his designated nominee) in accordance withClause 8; or
4.2.3 that he requires further information in order to complete his review, in which case the Club shall promptly provide such further information. Failure to provide such further information may be treated as a breach of Clause 3.1.6.
4.3 Any Club that fails to provide a satisfactory Aggregate Liability Statementto the RSCM will be reported to the Compliance Manager who shall consider whether there is a case to answer for the commission of a Salary Cap Offence before referring the matter to the Operational Rules Tribunal in accordance with Clause 7.9.

Calculating the Salary Cap Value of a Player

E1:5:1 The “Salary Cap Value” of a Player is the total sum of the Gross payments and other benefits that are paid or payable by a Club or Accrue (or are deemed to Accrue, in accordance with this Clause 5) to the Player in the relevant Salary Cap Year, whether pursuant to a Playing Contract or other arrangement (verbal or otherwise), in consideration for or otherwise on account of the Player’s provision of playing (or related) services to the Club in that Salary Cap Year.
Comment to Clause 5.1: By way of example only (and without limitation), a Player’s grant to his Club of the right to use his name or image or other attributes for commercial and/or promotional purposes is a service ‘related’ to the playing services he provides to the Club and any payments made by the Club to the Player in consideration of the same must therefore be treated as part of the Salary Cap Value of that Player.

A. General Principles

E1:5:2 Wherever salary or other benefits are expressed as being paid, payable or Accruing:

5.2.1 “to a Player”, such expression will be deemed to include payments that are paid, payable or Accrue:

  1. to the Player himself;
  2. for the benefit of the Player;
  3. to, or for the benefit of, the spouse, partner, relative or trustee of the Player;
  4. to, or for the benefit of, any person or business entity associated directly or indirectly with the Player;
  5. in satisfaction of all or part of a debt owed by the Player;
  6. to, or for the benefit of, a Licensed Player Agent or other Agent for services rendered on behalf of the Player;
  7. at, or pursuant to, the direction of the Player; and/or
  8. such other transactions as the RSCM determines should be treated as payments to a Player;

5.2.2 “by a Club”, such expression shall be deemed to include payments and other benefits that are paid, payable or Accrue:


  1. by the Club itself;
  2. on behalf of the Club;
  3. by, or on behalf of, any person, business or entity associated or affiliated with the Club (including, without limitation, other sporting clubs, whether linked by common management, ownership, control, directorships, company officers, shareholding, undertaking or otherwise);
  4. by, or on behalf of, a sponsor or other commercial partner of the Club; and/or
  5. such other cases as the RSCM determines should be treated as payments by the Club.

E1:5:3 The following factors are irrelevant to the calculation of the Salary Cap Value of a Player:

5.3.1 Time of Actual Payment, i.e. whether or not a payment is actually made or a benefit is actually provided by the Club to the Player in the relevant Salary Cap Year. Instead, what is relevant is the date when the payment or benefit Accrues to a Player.

Comment to Clause 5.3.1: For example, if a Club contracts to pay a Player £25,000 for services rendered in one Salary Cap Year, that £25,000 shall be included in the calculation of the Player’s Salary Cap Value for that Salary Cap Year even if the Player agrees to the Club ‘deferring’ or ‘carrying over’ the actual payment of that £25,000 into a subsequent Salary Cap Year.

5.3.2 Amount Actually Received By The Player, i.e. the aggregate value of salary and other benefits actually received by the Player during the Salary Cap Year. In many cases, part of the Salary Cap Value of a Player will be a notional value, determined on the basis of a number of assumptions. Whether or not such notional value proves to be an accurate assessment of the actual value received by the Player during the Salary Cap Year is irrelevant: the Salary Cap Value will not be recalculated because the actual value of the benefit in question turns out to be greater than or smaller than its notional value.

Comment to Clause 5.3.2: Where the Salary Cap Value of a Player has been calculated (in whole or in part) on the basis of a number of assumptions about the notional value of certain payments or other benefits Accruing to the Player in that Salary Cap Year, it is possible that, in that Salary Cap Year, that Player may actually Accrue either: (a) less than his Salary Cap Value (if, for example, he gets injured and does not play as often as had been expected and/or the Club does not win as many games as had been expected); or (b) more than his Salary Cap Value (if, for example, he plays more games than expected and/or the Club wins more games than expected). In neither case would this have any impact upon the calculation of that Player’s Salary Cap Value for that Salary Cap Year.

E1:5:4 For the purposes of calculating the Salary Cap Value of a Player:

5.4.1 the RSCM may decide to treat a Club’s liability to a Player for salary and/or specific payments or benefits (including but not limited to the specific cases set out in Clauses 5.6.6 and 5.6.7, below) as Accruing on a pro rata basis across all or part of the term of the Player’s Playing Contract, if the RSCM believes that such payment or benefit is being made in consideration for services rendered across such term.

In reaching a decision, the RSCM will act reasonably and will take into consideration:

the reasonableness of the schedule of payments and/or benefits and whether, in any given Salary Cap Year, the Player’s welfare and interests would be prejudiced by the proposed arrangements, and

the value of any termination payment (or other benefits) received by the Player from a previous club immediately before signing for the Club. The previous club may be in any country and of either rugby code and the details of any such payment must be supplied to the RSCM in writing.

Comment to Clause 5.4.1: For example, where a Club agrees to pay to a Player a bonus of £50,000 upon signature of a five-year Playing Contract, the RSCM may treat such bonus as Accruing to the Player across the entire term of the Playing Contract, so that £10,000 will be allocated to the Salary Cap Value of the Player in each of the five Salary Cap Years, rather than £50,000 being allocated to the Salary Cap Value of the Player in the first Salary Cap Year.

However, alternatively, if the Club agrees a new contract with a Player and agrees a bonus of, say, £20,000 that is paid before the end of the season prior to the first new year of the new contract, the RSCM may decide to treat such bonus as an addition to the Player’s Salary Cap Value for the earlier Salary Cap Year – even if the payment of the bonus has the effect of reducing the salary that would otherwise be payable during the actual term of the new contract. In coming to such a decision, the RSCM would first consider the factors written into this rule.

Finally, if the Club makes a one-off lump sum payment of £50,000 into an EBT (to be held on the Player’s behalf), the RSCM may allocate that £50,000 on a pro rata basis across the Salary Cap Years covered by the Playing Contract (e.g., in a two-year Playing Contract £25,000 per year) for the purposes of calculating the Salary Cap Value of the Player in each such Salary Cap Year.

5.4.2 where the Club proposes to register a Player part-way through the Salary Cap Year, the RSCM shall calculate the Salary Cap Value of the Player, in accordance with the usual principles, as if the Player was employed by the Club for the entire Salary Cap Year.

Comment to Clause 5.4.2: For example, where a Player enters into a Playing Contract with a new Club commencing on 1 June (i.e. 6 months into the Salary Cap Year) and providing that he will (for the remaining six months of the Salary Cap Year): (i) be paid a Gross salary of £5,000 per month; (ii) receive benefits to the Gross value of £1,000 per month; and (iii) be paid £250 per appearance, for the purposes of the Regulations, the Salary Cap Value for that Player, as at the date of joining the new Club, will be £76,500, calculated as follows:

(i) £60,000 (i.e. £5,000 salary per month x 12 months);
(ii) £12,000 (i.e. £1,000 benefits per month x 12 months); and
(iii) £4,500 (i.e. £250 per appearance x 18 assumed appearances, in accordance with clause 5.6.3, below).

Further comment to Clause 5.4.2: See Clause 6.1.2 for a Club’s treatment of the termination of a Playing Contract part-way through a Salary Cap Year.

5.4.3 A player moving between Super League clubs during the regular season cannot have a lower SCV at his new club than what he had at the old one, regardless of what his new contract states.

E1:5:5 For the avoidance of doubt, where any element of the Salary Cap Value for a Player is to be paid in a foreign currency, the value of such element, for the purposes of these Regulations, shall be converted to Great British Pounds Sterling at NatWest Bank plc’s buying rate for that foreign currency at 12.00 noon on 1 December of the relevant Salary Cap Year.

Items that must be included in the calculation of the Salary Cap Value of a Player

E1:5:6 All of the following must be included in the calculation of the Salary Cap Value of a Player:

Salary and Other Benefits

5.6.1 the Gross value of all salary payments (including, without limitation, any signing-on fee) that Accrue to the Player during the Salary Cap Year in respect of services rendered during that Salary Cap Year;

5.6.2 except as provided in this 5.6.2 below, the Gross value of all benefits that Accrue to the Player during the Salary Cap Year in respect of services rendered during that Salary Cap Year, including (without limitation) the provision of accommodation, the payment of rent, council tax, amenity bills and/or telephone bills, the provision of travel and/or car allowances for the Player, and payments made to Agents or Licensed Player Agents or others that would otherwise have to be made by the Player. Where the Gross value of the benefits is not expressly stated in the Playing Contract, or the RSCM does not agree with the value(s) in the Playing Contract, the RSCM shall determine his own view of the Gross value of those benefits for the purposes of calculating the Player’s Salary Cap Value.

The following do not count in the calculation of a Player’s Salary Cap Value:

the value of any of the Club’s season tickets and/or match day passes (or their equivalent) given to the Player and/or his immediate family members – provided that the RSCM may disregard this exception where, acting reasonably, he determines the value and/or number of the tickets or passes to exceed what is reasonable in the circumstances of the Player in question, and

costs paid directly by the Club to an educational/vocational training establishment in respect of the Player’s development, provided that such costs are approved in writing by the RSCM (with such approval usually sought prior to commencement of the course in question).

Comment to Clause 5.6.2: For example, where a Club contracts to pay a Player an “accommodation allowance” during the Salary Cap Year (but does not specify the actual value of that allowance), the RSCM will consider all relevant factors (such as the housing requirements of the Player, the value of property in the relevant area, the value of the salary and other benefits Accruing to the Player in the Salary Cap Year, etc) in order to assess the Gross value attributable to such “accommodation allowance”.

Further comment to Clause 5.6.2: For the avoidance of doubt, where a Club pays a yearly premium to insure against the cost of a Player’s medical expenses, such premium will not be included in the calculation of the Salary Cap Value of that Player. However, to the extent that the Club also insures against the cost of medical expenses incurred by any member of the Player’s family or other close friends, the premium payable for such cover must be included in the calculation of the Salary Cap Value of that Player.

Appearance Bonuses
5.6.3 the deemed Gross value of any bonuses that may Accrue to the Player depending upon the number of Salary Cap Relevant Matches for which he is selected to participate (whether as a starting or substitute player) during the Salary Cap Year. For the purposes of calculating the Salary Cap Value of a Player, such deemed Gross value is to be determined in accordance with the following principles:
where a Player’s Gross salary is more than £20,000 for the Salary Cap Year in question (€26,667 for Euro currency based clubs), the deemed Gross value of any appearance bonus provisions will be calculated on the assumption that the Player will participate in 18 Salary Cap Relevant Matches for the Club during the Salary Cap Year;

Comment to Clause 5.6.3(a): For example, where a Club contracts to pay a Player £21,000 in salary plus £200 per first team appearance in a particular Salary Cap Year, the deemed Gross value of the appearance bonus provision for the purposes of calculating the Player’s Salary Cap Value for that Salary Cap Year will be £3,600 (i.e. £200 x 18). If instead the Club contracts to pay the Player a £2,500 bonus for every 5 first team appearances, the deemed Gross value of the appearance bonus provision for purposes of calculating the Player’s Salary Cap Value will be £7,500 (i.e. £2,500 x 3).
where a Player’s Gross salary is £20,000 or less for the Salary Cap Year in question (€26,667 for Euro currency based clubs), the deemed Gross value of any appearance bonus provisions will be calculated on the assumption that the Player will participate in 5 Salary Cap Relevant Matches for the Club during the Salary Cap Year; and

Comment to Clause 5.6.3(b): For example, where a Club contracts to pay a Player £20,000 in salary plus £300 per first team appearance in a particular Salary Cap Year, the deemed Gross value of the appearance bonus provision for the purposes of calculating the Player’s Salary Cap Value for that Salary Cap Year will be £1,500 (i.e. £300 x 5). If instead the Club contracts to pay the Player a £2,500 bonus for every 10 first team appearances, the deemed Gross value of the appearance bonus provisions for the purposes of calculating the Player’s Salary Cap Value will be £0.
in any case to which the principles in Clause 5.6.3(a) or (b) cannot be applied, the RSCM shall determine the deemed Gross value of the appearance bonus provisions for the purposes of calculating the Player’s Salary Cap Value.

Comment to Clause 5.6.3(c): For example, if a Club contracts to pay a Player a bonus of £10,000 if the Player makes 10 consecutive first team appearances, the RSCM will assess the deemed Gross value of that bonus provision by reference to such factors as the Player’s ability, likelihood of injury, etc.
Win Bonuses

5.6.4 unless otherwise excluded in accordance with Clause 5.7.1, the deemed Gross value of any bonuses that may Accrue to the Player depending upon the Club’s success in any Salary Cap Relevant Matches in which the Player participates during the Salary Cap Year. For the purposes of calculating the Salary Cap Value of the Player, such deemed Gross value is to be determined in accordance with the following principles:
where the Gross value of the win bonus is £500 or less per win (€667 for Euro currency based clubs), then if the Player’s Gross salary is:

more than £20,000 for the Salary Cap Year in question (€26,667 for Euro currency based clubs), the deemed Gross value of the win bonus provisions will be calculated on the assumption that the Player will play in 14 winning Salary Cap Relevant Matches for the Club during the Salary Cap Year;

Comment to Clause 5.6.4(a)(i): For example, where a Club contracts to pay a Player £21,000 in salary and £300 per first team win in which the Player participates in that Salary Cap Year, the deemed Gross value of the win bonus provisions for the purposes of calculating the Player’s Salary Cap Value will be £4,200 (i.e. £300 x 14).
£20,000 or less for the Salary Cap Year in question (€26,667 for Euro currency based clubs), the deemed Gross value of the win bonus provisions will be calculated on the assumption that the Player will play in 5 winning Salary Cap Relevant Matches for the Club during the Salary Cap Year;

Comment to Clause 5.6.4(a)(ii): For example, where a Club contracts to pay a Player £20,000 in salary and £500 per first team win in which the Player participates in that Salary Cap Year, the deemed Gross value of the win bonus provision for the purposes of calculating the Player’s Salary Cap Value will be £2,500 (i.e. £500 x 5)
where the Gross value of the win bonus is more than £500 per win (€667 for Euro currency based clubs), and in all other cases in which Clause 5.6.4(a) cannot be applied, the RSCM shall determine the deemed Gross value of the win bonus provisions for the purposes of calculating the Player’s Salary Cap Value;

Comment to Clause 5.6.4(b): For example, where a Club contracts to pay a Player £1,000 per first team win in which the Player participates, the RSCM will assess the deemed Gross value of that win bonus provision by reference to factors such as the winning record of the Club and appearance and winning record of the Player in previous seasons.
Alternatively, if a Club contracts to pay a Player a win bonus: (i) irrespective of whether the Player participates in the Salary Cap Relevant Match in question; or (ii) which is of variable value depending upon the number of consecutive wins that the Club may have had prior to that Salary Cap Relevant Match, the RSCM will assess the deemed Gross value of such win bonus provisions by reference to factors such as the Player’s ability, likelihood of injury, and the winning record of the Club and Player in previous seasons.

Other Bonus Payments
5.6.5 unless otherwise excluded in accordance with Clauses 5.7, the deemed Gross value of all other bonus payments that may Accrue to the Player (e.g. try-scoring bonuses) during the Salary Cap Year. For the purposes of calculating the Salary Cap Value of such a Player, the RSCM shall determine the deemed Gross value of such other bonus provisions;

Comment to Clause 5.6.5: For example, where a Club contracts to pay a Player £20,000 if he scores 10 tries for the Club in a Salary Cap Year, the RSCM will assess the deemed Gross value of that bonus provision by reference to factors such as the Player’s ability and position, likelihood of injury, the Player’s try-scoring record in previous seasons and the Club’s winning record in previous seasons.

Further comment to Clause 5.6.5: Alternatively, where a Club contracts to pay a Player £20,000 if the Club finishes in the top six places in Super League, the RSCM will assess the deemed Gross value of that bonus provision by reference to factors such as the Club’s record in previous seasons.

Employee Benefit Trust Payments
5.6.6 the Gross value of any payments (discretionary or otherwise) that Accrue to the Player during the Salary Cap Year in consideration for the Player’s provision of playing (or related) service to the Club in that Salary Cap Year, and which are paid or payable by the Club into an Employee Benefit Trust or similar trust vehicle (whether held overseas or in the United Kingdom) (“EBT”), to be held on the Player’s behalf;

Image Rights Payments
5.6.7 the Gross value of all amounts that Accrue to the Player during the Salary Cap Year in consideration for the right to exploit commercially the Player’s name, image and/or other attributes in that Salary Cap Year; and

All Other Payments Attributable to the Player’s Provision of Playing (or Related) Services

5.6.8 unless otherwise excluded in accordance with Clauses 5.7, the Gross value of all other amounts that Accrue to the Player during the Salary Cap Year (whether pursuant to the Playing Contract or otherwise) in consideration for or otherwise on account of the Player’s provision of playing (or related) services to the Club in that Salary Cap Year, including (without limitation), allowances; bonuses (whether discretionary or otherwise); disbursements; expenses; fringe benefits; incentives; insurance premiums; loans; pension contributions; and any other amounts determined by the RSCM to Accrue to the Player in consideration for the playing (or related services) he is providing to the Club in that Salary Cap Year. Where necessary, the RSCM shall determine the deemed Gross value of the relevant provisions for the purposes of calculating the Player’s Salary Cap Value.

Items that may be excluded from the calculation of the Salary Cap Value of a Player

E1:5:7 The following items may be excluded in the calculation of the Salary Cap Value of a Player:

Prize Money
5.7.1 the Gross value of any of the following payments that may Accrue to the Player during the Salary Cap Year:

any share of the official prize money paid by the RFL to the Club as a result of the Club’s performance in the Super League competition (provided that full details of such prize money bonuses are submitted to the RSCM at the time that the Player’s playing contract is submitted);

any share of the official prize money paid by the RFL to the Club as a result of the Club’s performance in the Challenge Cup competition (provided that full details of such prize money bonuses are submitted to the RSCM at the time that the Player’s playing contract is submitted); and/or

any share of the official prize money paid by the RFL to the Club as a result of the Club’s performance in the World Club Challenge competition (provided that full details of such prize money bonuses are submitted to the RSCM as soon as reasonably practicable and in any event no later than seven days prior to the World Club Challenge competition).

Comment to Clause 5.7.1: For example, where a Club contracts to pay a Super League bonus to a Player, such Super League bonus being a share of the prize money paid by the RFL to the Club based upon the Club’s success in the Super League during the relevant Salary Cap Year, the value of such Super League bonus will be excluded from the calculation of the Salary Cap Value for that Player.

5.7.2 the Gross value of any bonus payments that may Accrue to the Player during the Salary Cap Year if he wins the annual Man-of-Steel award (or any other similar individual award) or any Man-of-the-Match awards in that Salary Cap Year;

International Representation Bonuses
5.7.3 the Gross value of any bonus payments that may Accrue to the Player during the Salary Cap Year if he is selected to represent his country in an official international test match in that Salary Cap Year, subject to the following maximum limits:

national age group team (e.g. England Under 18): £500 (€667); and

national (e.g. England, Scotland, Wales, France, Australia, New Zealand or Great Britain) senior team: £5,000 (€6,667)

provided that the deemed Gross value of all international representation bonus provisions over and above the specified limits will be included in the calculation of the Player’s Salary Cap Value, and the RSCM shall determine the Gross value of any part of such bonus provisions that he determines is in excess of the maximum limits set out above:

Comment to Clause 5.7.3: For example: (i) if a Club contracts to pay to a Player £5,000 upon making his debut for England, then such payment would not form part of the Salary Cap Value of that Player; but (ii) if a Club agrees to pay to a Player £15,000 upon making his debut for England, then the first £5,000 would not form part of the Salary Cap Value and the RSCM would then assess the deemed Gross value of that provision (disregarding the first £5,000) for the purposes of calculating the Player’s Salary Cap Value by reference to factors such as the Player’s ability and likelihood of international selection.

Further comment to Clause 5.7.3: where a Club contracts to pay to a Player £2,500 per appearance for New Zealand, then the RSCM would assess the deemed Gross value of that provision (disregarding the first £5,000) for the purposes of calculating the Player’s Salary Cap Value by reference to factors such as the Player’s ability, likelihood of selection and the number of New Zealand fixtures during the relevant Salary Cap Year.

Participation in a non-Salary Cap Relevant Match
5.7.4 Where a Club participates in a non-Salary Cap Relevant Match, and the RSCM determines that such participation is beneficial to the development of the sport of rugby league, then any payment made by the Club to a Player that relates solely to the Player’s participation in that non-Salary Cap Relevant Match may be excluded from the calculation of the Salary Cap Value for that Player.

Comment to Clause 5.7.4: For example, if a Club participates in an event such as the Middlesex Rugby Union Sevens or a “One-Off” Cross-Code Challenge, provided that the RSCM deems such participation to be beneficial to the development of the sport of rugby league, any payments made to a Player by the Club that relate to the Player’s participation in such event (e.g. winning bonuses etc) shall be excluded from the calculation of the Salary Cap Value for that Player.

Further comment to Clause 5.7.4: For the avoidance of doubt, payments made to Players in relation to such participation are examples of transactions or conduct which varies a Club’s Aggregate First Tier and/or Second Tier Liability, and the Club must first obtain the RSCM’s express written approval to make such payments in accordance with Clause 6.1.

E1:5:8 Other Employees of the Club acting as Players
5.8 Where any employee of the Club (such as a coach or trainer) is selected to play for the Club in a Salary Cap Relevant Match during the Salary Cap Year, he shall immediately be considered to be a ‘Player’ for the remaining period of the Salary Cap Year (irrespective of his primary duties to the Club and/or whether he plays for the Club in any other Salary Cap Relevant Match during the remainder of the Salary Cap Year).

Comment to Clause 5.10: Because the Club’s selection of an ordinary (i.e. non-Player) employee in a Salary Cap Relevant Match will vary the Club’s Aggregate Liability, the Club must first obtain the RSCM’s express written approval of such conduct in accordance with Clause 6.1.

As a starting point for determining that Player’s Salary Cap Value for the remainder of the Salary Cap Year, the RSCM will use the remuneration entitlement of that Player under the terms of his basic employment contract with the Club, and will apply such other principles as described in this Clause 5 as the RSCM considers appropriate in all the circumstances.

E1:5:9 Payments under RFL-approved Insurance Policies
Where a Player is injured while playing for a representative team authorised by the RFL, any payment received by the Club under an insurance policy approved by the RFL, to compensate the Club for payments it has made to the Player during the period in which he was injured, will be deducted from the Salary Cap Value of that Player for the remainder of the relevant Salary Cap Year(s).

E1:5:10 Elite Representative Squad Dispensation Allowance
The following dispensation will apply for 2012, 2013 and 2014 with the purpose of incentivising clubs to produce players for the elite representative squads, reward those that do and assist the competition in retaining the best UK developed players.

For the purposes of this rule the elite representative squads are the Elite Training Squad (ETS) and the Knights Squad.

The maximum allowance under this rule for each club will be £100,000 per annum.

The cap dispensation will for each club will be determined on the 1st August each year by the RFL and this figure will be an additional allowance in the Cap for the following Salary Cap Year.

These allowances apply to the clubs finite Salary Cap (Liability) at the start of any one Salary Cap Year and remain until the end of that Salary Cap Year regardless of any movement of players be that to another Club or out of the game during the time period.

E1:5:11 The allowances will be as follows:
5.13.1 A £10,000 per player per annum allowance will be applied to a Club’s Cap for each player included in the ETS squad who has been “developed” by that club. “Developed” is defined as having achieved Club Trained status at the Club.

5.13.2 A £10,000 per player per annum allowance to be applied to a club’s Cap for each Player included in the ETS squad who is a Club Trained or CTWT Player currently on a club’s register.

5.13.3 A £5,000 per player per annum allowance to be applied to a club’s Cap for each Player included in the Knights squad who has been “developed” by that club (“developed” is defined as entitled to Club Trained status at the club).

5.13.4 A £5,000 per player per annum allowance to be applied to a club’s Cap for each Player included in the Knights squad who is a Club Trained or CTWT Player currently on a club’s register.

Inclusion in the ETS or Knights squad is calculated on the basis of any player contracted to either the ETS squad or Knights squad respectively at any time during the period 1 February to 31 July in any given year.

Where a player is included in both squads during the relevant period the Club shall only receive an allowance for the ETS squad.

In the case of 5.13.1 and 5.13.33 above this allowance applies regardless of whether the player is still registered with the club. N.B. Under the formula above some clubs may receive two allowances for the same player and some players may provide allowances for two or more clubs.

In recognition of their unique situations both clubs in the Strategically Significant Markets will receive the £100,000 allowance as follows:

Catalan Dragons develop and retain the majority of elite French talent and therefore are to receive the full Cap allowance of £100,000 whether or not any individual players meet the requirements of 5.13.1 to 5.13.4 above.

In recognition of the higher living costs for London Broncos players due to their location a 10% London cost of living weighting allowance is applied to the Club’s maximum aggregate Liability (£1.825m in 2014) is available in addition to the Elite Representative Squad dispensation, subject to the combined value of both allowances being capped at the 10% weighting allowance.

Comment to 5.12 example of calculation timetable. On 1 August 2012 a club’s allowance for Salary Cap Year 1 December 2012 to 30 November 2013 will be calculated on the basis of all players contracted to the ETS or Knights squad between 1 February to 31 July 2012.

E1:5:12 ‘New Talent Pool Players Allowance’
The intention behind this allowance is to remove any disincentive Clubs might feel in considering signing untried players from Rugby League development areas and/or other sports.

The RSCM will administer the allowance in pursuit of this intention in the event of any cases where there is a doubt as to whether the individual in question should qualify for an allowance.

An allowance against the calculation of a player’s Salary Cap Value is available under the provisions of this clause 5.14 as follows:

(a) a person who:
(i) has attained age 19 on 31st August prior to the start of the season (e.g. 31st August 2012 for the 2013 season),
(ii) has not played Rugby League at any age group or level, subject to the RSCM’s ability to use his reasonable discretion to override this restriction so that, non-exhaustively, it would ordinarily apply only to those who have not:

(a) played Rugby League for any participant club or team in a national 1st tier senior grade competition (including for example, the European Super League, UK Championships, any of the Australian NRL competitions, French Elite Championship, New Zealand’s national competitions),
(b) played for a team in a national Rugby League development competition (including non-exhaustively, the RFL’s Academy competitions and the NRL’s National Youth Competition), and/or
(c) participated in and/or played RFL Scholarship age group Rugby League (or any equivalent Rugby League programmes based in other countries not covered in (ii) (a) or (b) above)

shall, for the purposes of the allowance set out in this clause 5.13, be known as a ‘New Talent Pool Player’,

(b) subject to (c) below, where a Club registers a New Talent Pool Player, that player’s Salary Cap Value will be reduced in accordance with the following provisions:
(i) in respect of the period up to the end of the New Talent Pool Player’s first full Salary Cap Year with the Club, his Salary Cap Value will be reduced to £0 (and for the avoidance of doubt, where the New Talent Pool Player is registered on or after 1st February during a Salary Cap Year, that year will not count as the one full Salary Cap Year to which this allowance applies),
(ii) in respect of the period up to the end of the New Talent Pool Player’s second full Salary Cap Year, his Salary Cap Value will be reduced by 50%,

(c) the New Talent Pool Player allowance set out in (b) above is subject to the following conditions:
(i) Clubs are limited to 2 New Talent Pool Players to whom the New Talent Pool Players allowance can apply to at any time,
(ii) where a Club has more than 2 New Talent Pool Players registered, it may notify the RSCM as to which 2 of its New Talent Pool Players the allowance will apply,
(iii) for the avoidance of doubt, where a New Talent Pool Player moves to another Club the allowance is available to his new Club but shall not extend beyond the period it would have endured had he remained at his original Club.

Ongoing Assessment of a Club’s Aggregate Liability

E1:6:1 At any point during the Salary Cap Year, where a Club wishes to commit itself to any transaction, or to conduct itself (by act or omission) in any manner, which varies its Aggregate Liability, the Club must first provide to the RSCM written details of the proposed transaction or conduct, and evidence of the impact that such transaction or conduct would have on its Aggregate Liability. In no circumstances is the Club permitted to proceed with such transaction or conduct without the RSCM’s express written approval.
Comment to Clause 6.1: Examples of transactions or conduct that may vary a Club’s Aggregate Liability are set out at Appendix 2.
6.1.1 Where the proposed transaction is the agreement of a new Playing Contract with either one of the Club’s existing Players or a new Player, then the information provided to the RSCM must include a properly completed Registration Request Form (attached at Appendix 4).
Comment to Clause 6.1.1: The RFL will not register a new Playing Contract unless and until the RSCM has given his express written approval pursuant to Clause 6.2.
In addition, registration of a new Playing Contract will be governed by section C1 of the Operational Rulesand the express written approval of the RSCM does not provide any form of guarantee or assurance that the requirements of those Operational Rules have been satisfied or that such Playing Contract will be registered by the RFL.
6.1.2 Where the proposed transaction is the termination of a Playing Contract with one of the Club’s existing Players, as part of which the Club proposes to make a new payment (in a lump sum or in instalments) to the Player that was not provided for in his Playing Contract or other arrangements (and therefore was not previously included in the calculation of his Salary Cap Value) (the “Termination Payment”), then the information provided to the RSCM must include a proposed compromise agreement between the Player and the Club (usually in the form of the RFL’s standard compromise agreement as drafted from time to time) setting out full details of the agreement reached, including full details of the Termination Payment.
6.1.3 On approval of a Termination Payment referred to in clause 6.1.2 above, the Player’s original Salary Cap Value shall thereafter be disregarded for the purposes of calculating his previous Club’s Aggregate Liability.
In relation to his new Club (if applicable), the Player’s Salary Cap Value will be calculated as normal in accordance with the Regulations unless, in very unusual circumstances, the transaction is one:
(a) that the RSCM believes, acting reasonably, to operate against the overriding spirit and purpose of the salary cap (as set out in clause 1.1 above), and
(b) where the Player’s new Salary Cap Value is significantly less than it was at his previous Club and/or where the Termination Payment involved in the transaction in question is significantly in excess of the usual tax free termination payment permitted by HMRC (noting clause 1.6 above).
In any such unusual circumstances, the RSCM is hereby empowered to agree a different (higher) Salary Cap Value with the Club in question and, ultimately, in the event that the Club proceeds to register the Player without such agreement, to apply a different Salary Cap Value to the Player at his new Club.
6.1.4 The RCSM may notify the Club that he requires further information in order to assess the proposed transaction or conduct. He shall not be required to proceed with his assessment until such further information is received.

E1:6:2 The RSCM will only approve the proposed transaction or conduct if he is satisfied that the proposed transaction or conduct would not take the Club’s Aggregate First Tier Liability over £1,825,000 (€2,300,000 for Euro currency clubs), nor would it otherwise result in the commission of a Salary Cap Offence.

E1:6:3 The RSCM will make all reasonable efforts to advise the Club whether or not the proposed transaction or conduct is approved (or that further information is required) within five working days of receipt of the Club’s submission. A Club may not assume that the proposed transaction or conduct is approved unless and until such express approval has been provided by the RSCM.

E1:6:4 If the RSCM is not satisfied that the proposed transaction or conduct would not result in the commission of a Salary Cap Offence, he must give the Club:
6.4.1 brief written reasons for the RSCM’s refusal to approve the Club’s proposed transaction or conduct;
6.4.2 a warning that, should the Club go ahead with the proposed transaction or conduct, then such transaction or conduct would constitute a Salary Cap Offence pursuant to Clause 3.1.5, irrespective of whether or not the transaction or conduct is later determined to have placed the Club in breach of any other Salary Cap Offences; and
6.4.3 notice of the Club’s right to have his decision reviewed by the Chairman of the Operational Rules Tribunal (or his designated nominee) in accordance withClause 8.

Monitoring Compliance

E1:7:1

A. The Compliance Team

Monitoring compliance with the Regulations will be the responsibility of the RSCM (who shall report to the RFL’s In House Lawyer), working closely with the Compliance Manager and the Compliance Investigators. For the purposes of the Regulations, the RSCM, Compliance Manager, Compliance Investigators and any member of the RFL’s Legal Department shall comprise the “Compliance Team”.

E1:7:2 In accordance with Clause 3.1.6, all Parties must cooperate fully with the Compliance Team and provide all necessary support and information to the Compliance Team upon demand, including (without limitation):
7.2.1 making themselves available to be interviewed by any member of the Compliance Team and cooperating fully with any such interview;
7.2.2 verifying the accuracy (or otherwise) of any information or document provided to any member of the Compliance Team;
7.2.3 producing such further information and/or documentation as may be requested by any member of the Compliance Team;
7.2.4 providing the necessary authority (where applicable) to any relevant third party (e.g. trustees, company directors etc) in order to ensure the production of any further information or relevant documents as may be requested by any member of the Compliance Team; and/or
7.2.5 providing copies of all offers made to players whether on that Club’s register or otherwise.

B. Clubs’ Reporting Obligations

E1:7:3 In addition to its general obligations of cooperation and disclosure set out in Clause 3.1.6 and Clause 7.2, each Club must complete and submit to the RSCM:
7.3.1 a Salary Cap Return Certificate (in the form attached at Appendix 6) covering the first six months of the Salary Cap Year (i.e. from 1 December to 31 May), to be signed by the Club’s Directors and received by the RSCM on or before 30 June of the applicable Salary Cap Year; and
7.3.2 a Salary Cap Return Certificate (in the form attached at Appendix 7) covering the full twelve months of the Salary Cap Year (i.e. from 1 December to 30 November), to be signed by the Club’s Directors and received by the RSCM on or before 30 December after the applicable Salary Cap Year.

E1:7:4 Moreover, a Club must continue to complete Monthly Management Reports (in the form attached at Appendix 5) throughout the Salary Cap Year. Such Monthly Management Reports need not be submitted to the RSCM unless the RSCM makes a specific request of a Club, in which case the relevant Monthly Management Report(s) must be provided by the Club to the RSCM within seven days of such request.

C. The Compliance Team’s Audit Powers

E1:7:5 The Compliance Team is entitled to audit a Club’s books and records and/or interview any Club Official or Player at any time during office hours, on any number of occasions during a Salary Cap Year, with or without prior notice. Where notice is given, the RSCM may seek to agree a date for the audit with the Club, failing which the Compliance Team may carry out the audit on any date of the RSCM’s choosing.

E1:7:6 Any Club selected for audit must cooperate fully with the Compliance Team in respect of the audit, including (without limitation) by making requested documents (including the Club’s accounts and accompanying documents) and other information available for inspection and/or arranging for specified Club Officials and/or Players to be available for interview, as required by the Compliance Team.

D. Requests for Clarification

E1:7:7 At any point during a Salary Cap Year, if a Club desires clarification of any aspect of the Regulations (including, by way of example, the calculation of the Salary Cap Value of a particular Player, or the treatment of a particular type of payment not expressly covered by the Regulations), the Club may request such clarification from the RSCM, and he shall provide such clarification (so far as he is reasonably capable) as soon as is reasonably practicable. However, the RSCM reserves the right to re-consider and (where applicable) re-evaluate any response to any such request in light of further relevant information becoming available to the RSCM.
Comment to Clause 7.7: Clubs are strongly encouraged to make such requests for clarification at the earliest possible opportunity in order to clarify any uncertainty or confusion and/or to avoid the inadvertent commission of a Salary Cap Offence.

E. Investigations/Case to Answer

E1:7:8 Any potential breach of the Regulations shall be reported to and investigated by the Compliance Manager.

E1:7:9 All Parties must cooperate fully with any investigation conducted pursuant to Clause 7.8.

E1:7:10 If the Compliance Manager determines that there is a case to answer for commission of a Salary Cap Offence, then the matter will be referred to the Operational Rules Tribunal, which will proceed at all times in accordance with the procedures set out in Section D1 of the RFL’s Operational Rules.

E1:7:11 Decisions of the Operational Rules Tribunal may be challenged only by appeal exclusively as set out in section D (‘Right of Appeal’) of the RFL’s Operational Rules. Such decisions shall remain in effect while under appeal unless the Operational Rules Appeal Tribunal orders otherwise. Subject thereto, the decision of the Operational Rules Tribunal (or, in the event of an appeal, the decision of the Operational Rules Appeal Tribunal) will be the full, final and complete disposition of the matter and will be binding on all relevant Persons.

F. Data Protection

E1:7:12 Any Person who submits information (including personal data) pursuant to the Regulations shall be deemed to have agreed, both pursuant to the Data Protection Act 1998 and otherwise, that such information may be collected, processed and disclosed in accordance with, and for the purposes of the implementation of, the Regulations.

Review of the RSCM’s Decisions

E1:8:1 Where the RSCM is charged with making a decision under the Regulations, he shall make such decision acting rationally (i.e. the decision must be within the range of decisions that a reasonable man could make) and having due regard to all relevant factors, including any materials submitted to him by the Club.

E1:8:2 If a Club disagrees with any decision made by the RSCM under the Regulations, its sole remedy is to apply to the Chairman of the Operational Rules Tribunal (or his designated nominee) toreview the RSCM’s decision. Each Club waives any other right of appeal or challenge that might otherwise exist in respect of such decision.

E1:8:3 An application pursuant to Clause 8.2 (together with a copy of the decision in question and all materials relied upon in support of the application) must be received by the Chairman of the Operational Rules Tribunal (or his designated nominee) and a copy must be received by the RSCM, no later than five working days after receipt of the decision. If no such application is received by such deadline, the RSCM’s decision shall be deemed final and binding and not subject to further review, appeal or challenge of any kind.

E1:8:4 Any comments that the RSCM wishes to make in relation to such application must be received by the Chairman of the Operational Rules Tribunal (or his appointed nominee), and a copy must be received by the applicant Club, no later than five working days after receipt of the application.

E1:8:5 The Chairman of the Operational Rules Tribunal (or his appointed nominee) may take such advice in relation to the Club’s application as he deems appropriate (including from the RFL’s Director of Finance and/or Performance Director) and may require the Club and/or the RSCM to produce such further information as he deems appropriate. He must notify the Club and the RSCM of his decision on the Club’s application as soon as reasonably practicable. Pending his decision, the RSCM’s decision under review shall remain binding on all relevant Parties.

E1:8:6 The decision of the Chairman of the Operational Rules Tribunal (or his appointed nominee) on the application will be the full, final and complete disposition of the matter and will be binding on all relevant Parties.

Sanctions

E1:9:1 Where an Operational Rules Tribunal or Operational Rules Appeal Tribunal determines that a Salary Cap Offence has been committed, it shall be entitled to impose any one or more of the following sanctions that it deems appropriate, having regard to all of the circumstances of the case:
9.1.1 a caution, reprimand and/or warning as to future conduct;
9.1.2 a fine;
9.1.3 in the case of a Club, the deduction of up to 20 Super League competition points;
9.1.4 in the case of a Club, the imposition of a restriction on the Club’s ability to register any new Players;
9.1.5 in the case of a Club, the making of a recommendation to the RFL’s Board to withdraw the Club’s licence to participate in the Super League competition or any other competition or event authorised, convened or organised by the RFL; and/or
9.1.6 in the case of Players or other Persons subject to the Operational Rules, suspension from involvement in the game of rugby league.

E1:9:2 For the avoidance of doubt, the Operational Rules Tribunal and Operational Rules Appeal Tribunal will have no jurisdiction to adjust, reverse or amend any of a Club’s individual match results in the Super League competition or other competitions authorised, convened or organised by the RFL.

E1:9:3 Having determined that a Salary Cap Offence has been committed, prior to determining the applicable sanction(s) under Clause 9.1, the Operational Rules Tribunal or Operational Rules Appeal Tribunal will identify all relevant factors that it deems to aggravate the nature of the Salary Cap Offence. Aggravating factors may include the following:
9.3.1 an absence or lack or remorse and/or contrition;
9.3.2 whether the Party has been found guilty of any Salary Cap Offence(s) in previous Salary Cap Years or under predecessor regulations;
9.3.3 the relative degree of fault, including in particular whether there had been any deliberate misrepresentation and/or intention to cheat;
9.3.4 whether the Salary Cap Offence substantially damaged or had the potential to substantially damage the competitive balance of the Super League competition;
9.3.5 where the welfare and interests of a Player has been endangered;
9.3.6 whether the RSCM had provided the Party with a warning as to future conduct; and/or
9.3.7 any other aggravating factor(s) that the Operational Rules Tribunal or Operational Rules Appeal Tribunal considers relevant and appropriate.

E1:9:4 Having determined that a Salary Cap Offence has been committed and taken into account any aggravating factors in accordance with Clause 9.3, the Operational Rules Tribunal or Operational Rules Appeal Panel will then identify all relevant factors that it deems to mitigate the nature of the Salary Cap Offence. Mitigating factors may include the following:
9.4.1 the presence and timing of an admission of guilt;
9.4.2 no prior Salary Cap Offences;
9.4.3 full cooperation with the Compliance Team;
9.4.4 minimal impact of the Salary Cap Offence upon the competitive balance of the Super League competition;
9.4.5 the relative degree of fault (e.g. where the Salary Cap Offence was unavoidable, accidental or inadvertent); and/or
9.4.6 any other mitigating factor(s) that the Operational Rules Tribunal or Operational Rules Appeal Tribunal considers relevant and appropriate.

E1:9:5 In exercising its discretion as to what sanction(s) to apply, the Operational Rules Tribunal or Operational Rules Appeal Tribunal will consider and apply (where appropriate) the RFL’s approved “Sentencing Guidelines” (as may be published and amended by the RFL from time to time).

Challenges to a Decision or these Regulations

E1:10:1 These Regulations and all issues arising hereunder shall be governed by the laws of England and Wales. If any Clause or provision of these Regulations is held invalid, unenforceable or illegal for any reason, these Regulations shall remain otherwise in full force apart from such Clause or provision which shall be deemed deleted insofar as it is invalid, unenforceable or illegal.

E1:10:2 These Regulations shall constitute an agreement to arbitrate, and proceedings before an Operational Rules Tribunal or Operational Rules Appeal Tribunal shall constitute arbitration proceedings, with a seat in England, for the purposes of triggering the application of the Arbitration Act 1996 (or any successor legislation).

E1:10:3 To the greatest extent allowable under applicable law, any challenge to these Regulations or to a decision made pursuant to these Regulations shall be made exclusively in accordance with the provisions of Clause 7.11, and shall not be made by recourse to any court or other forum.

E1:10:4 Subject strictly to Clause 10.3, the courts of England and Wales shall have exclusive jurisdiction in relation to these Regulations and any decision made hereunder.



Appendix 1: Definitions
The following terms when used in the Regulations shall have the meaning ascribed to them below:
Accrue(s):
The moment that a Club becomes liable to make the payment (or provide the benefit) in question, irrespective of whether the payment is actually to be made, or the benefit is actually to be provided, immediately or at some point in the future.
Aggregate Liability:
As defined in Clause 3.1.1.
Attempt:
Purposely engaging in conduct that constitutes a substantial step in a course of conduct planned to culminate in the commission of a Salary Cap Offence.
Club Trained Allowance – as defined in Clause 5.12.
Club Trained Player – as defined in Clause B1:11B (and for the avoidance of doubt shall, in the context of these Regulations, includes an ‘Academy Junior’ – as defined therein).
Compliance Team:
As defined in Clause 7.1.
Gross:
Without deduction of tax or other contributions or levies.
Long Service Concession:
As defined in Clause 5.8.
Playing Contract:
The standard RFL Full- or Part-Time Player’s Contract, entered into between a Player and a Club, which sets out the level of salary (and other benefits) to be earned by the Player pursuant to his employment with the Club.
Regulations:
As defined in Clause 1.1.
RSCM:
The Registrations and Salary Cap Manager (or his/her designee) appointed by the RFL from time to time to carry out the functions ascribed to the RSCM in the Regulations.
Salary Cap Offence:
As defined in Clause 3.
Salary Cap Relevant Match:
Any first team rugby football league fixture played between two Clubs in either: (a) the Super League competition (including play-offs); (b) the World Club Challenge competition; (c) the Challenge Cup competition (quarter-final, semi-final and final only); or (d) such other fixture as the RFL may prospectively determine to be a Salary Cap Relevant Match from time to time.
Salary Cap Value:
As defined in Clause 5.1.
Salary Cap Year:
The 12-month period from 1 December in one calendar year to 30 November in the following calendar year (inclusive).
Strict Liability Offence:
A Strict Liability Offence is one where it is not necessary to demonstrate intent, knowledge, negligence or other fault on the part of the Club in order to establish the commission of the offence; nor is the Club’s lack of intent, knowledge, negligence or other fault a valid defence to a charge of commission of the offence. For the avoidance of doubt, where the offence in question is admitted or established before an Operational Rules Tribunal and/or Operational Rules Appeal Tribunal, then (in accordance with Clause 9) evidence of intent, knowledge, negligence or other fault (or lack thereof) may be relevant to the issue of what sanction(s) should be imposed.
Termination Payment:
As defined in Clause 6.1.2.


Appendix 2: Transactions or Conduct that may affect a Club’s Aggregate First Tier Liability and/or its Aggregate Second Tier Liability
The following is a non-exhaustive list of the types of transactions or conduct that may vary a Club’s Aggregate First Tier Liability and/or its Aggregate Liability and for which express prior written approval of the RSCM is therefore required in accordance with Clause 6.

A1. Player who is not a First Tier Player whose first appearance for the Club in a Salary Cap Relevant Match for the first time in the Salary Cap Year would cause the Club to exceed the Aggregate Second Tier Liability
Prior RSCM approval pursuant to Clause 3.1.2 is required where a Club wishes to select a Player who is not a First Tier Player to play for the Club in a Salary Cap Relevant Match for the first time in a Salary Cap Year (so becoming a Second Tier Player) if the Player’s appearance would cause the Club to exceed the Aggregate Second Tier Liability (of £75,000).

A2. Proposed renegotiation of a Playing Contract with an existing Player
Prior RSCM approval pursuant to Clause 6 is required where a Club proposes to renegotiate any existing Playing Contract during the Salary Cap Year such that:
(a) the Player’s Salary Cap Value will or may change; and/or
Comment to Clause A2(a): If a Club’s Aggregate First Tier Liability is £1,65,000, including a Salary Cap Value of £70,000 for Mr A, approval would be granted for an increase of up to £25,000 in Mr D’s salary for the Salary Cap Year, but not an increase of more than £25,000.
(b) a non-First Tier Player becomes a First Tier Player
Comment to Clause A2(b): If the proposed transaction would increase the Salary Cap Value of a non-First Tier Player (Mr A) so that it is £10,000 greater than the Salary Cap Value of a First Tier Player who until then had the 25th highest Salary Cap Value at the Club (Mr B), so that (if approved) Mr A would become a First Tier Player and Mr B (if he has played in a Salary Cap Relevant Match in that Salary Cap Year) would become a Second Tier Player, approval will only be granted if the Club’s Aggregate First Tier Liability prior to the transaction is £1,640,000 or less, and if the Club’s Aggregate Second Tier Liability after the transaction would remain £75,000 or less.

A3 Signing of a New Player during the Salary Cap Year
Prior RSCM approval pursuant to Clause 6 is required where a Club proposes to enter into a Playing Contract with a new Player after the commencement of the Salary Cap Year. The RSCM will calculate the Salary Cap Value for that Player in accordance with Clause 4.
Comment to A3: For example, where a Player enters into a Playing Contract with a Club commencing on 1 June 2009 (i.e. 6 months into the 2009 Salary Cap Year) which provides that he will: (i) be paid a Gross guaranteed salary of £5,000 per month; (ii) receive benefits to the Gross value of £1,000 per month; and (iii) be paid £250 per appearance, for the purposes of these Regulations, the Salary Cap Value for that Player will be £76,500, calculated as follows:
(i) £60,000 (ie £5,000 salary per month x 12 months);
(ii) £12,000 (ie £1,000 benefits per month x 12 months); and
(iii) £4,500 (ie £250 per appearance x 18 assumed appearances: see Clause 4.5.3(a)).

A4 Termination of a Playing Contract during the Salary Cap Year
Prior RSCM approval pursuant to Clause 6 shall be required where a Club proposes to terminate the Playing Contract of a Player, whether pursuant to a transfer of that Player’s registration or otherwise. The RSCM shall formally approve such termination for purposes of Clause 6 and shall recalculate the Club’s Aggregate First Tier Liability and/or Aggregate Second Tier Liability in accordance with Clause 6.
Comment to Clause A4: If the departing Player was a First Tier Player, then the Player with the next highest Salary Cap Value outside of the Club’s First Tier Players will automatically become a First Tier Player for the purposes of the Regulations.

A5 Signing of a New Player on Loan during the Salary Cap Year
Prior RSCM approval pursuant to Clause 6 shall be required where one Club proposes to temporarily transfer the playing registration of a Player to another Club. For purposes of determining whether or not approval should be granted, the temporary transfer will be treated as a permanent transfer, ie as if the Player has departed from the first Club (see Clause A4) and signed permanently for the second Club (see Clause A3).
Comment to Clause A5: Any agreement reached between the Clubs as to who pays the Player’s salary (or any part thereof) has no relevance to the treatment of the Player in accordance with Clause A5, above.

E1:11 Appendix 2: Transactions or Conduct that may affect a Club’s Aggregate Liability




The following is a non-exhaustive list of the types of transactions or conduct that may vary a Club’s Aggregate Liability and/or its Aggregate Liability and for which express prior written approval of the RSCM is therefore required in accordance with Clause 6.


A1. Player who is not a Player whose first appearance for the Club in a Salary Cap Relevant Match for the first time in the Salary Cap Year would cause the Club to exceed the Aggregate Second Tier Liability




A2. Proposed renegotiation of a Playing Contract with an existing Player

Prior RSCM approval pursuant to Clause 6 is required where a Club proposes to renegotiate any existing Playing Contract during the Salary Cap Year such that:

(a) the Player’s Salary Cap Value will or may change; and/or

Comment to Clause A2(a): If a Club’s Aggregate Liability is £1,800,000, including a Salary Cap Value of £70,000 for Mr A, approval would be granted for an increase of up to £25,000 in Mr D’s salary for the Salary Cap Year, but not an increase of more than £25,000.

(b)


A3 Signing of a New Player during the Salary Cap Year

Prior RSCM approval pursuant to Clause 6 is required where a Club proposes to enter into a Playing Contract with a new Player after the commencement of the Salary Cap Year. The RSCM will calculate the Salary Cap Value for that Player in accordance with Clause 4.

Comment to A3: For example, where a Player enters into a Playing Contract with a Club commencing on 1 June 2009 (i.e. 6 months into the 2009 Salary Cap Year) which provides that he will: (i) be paid a Gross guaranteed salary of £5,000 per month; (ii) receive benefits to the Gross value of £1,000 per month; and (iii) be paid £250 per appearance, for the purposes of these Regulations, the Salary Cap Value for that Player will be £76,500, calculated as follows:

(i) £60,000 (ie £5,000 salary per month x 12 months);
(ii) £12,000 (ie £1,000 benefits per month x 12 months); and
(iii) £4,500 (ie £250 per appearance x 18 assumed appearances: see Clause 4.5.3(a)).


A4 Termination of a Playing Contract during the Salary Cap Year

Prior RSCM approval pursuant to Clause 6 shall be required where a Club proposes to terminate the Playing Contract of a Player, whether pursuant to a transfer of that Player’s registration or otherwise. The RSCM shall formally approve such termination for purposes of Clause 6 and shall recalculate the Club’s Aggregate Liability in accordance with Clause 6.

Comment to Clause A4: If the departing Player was a Player, then the Player with the next highest Salary Cap Value outside of the Club’s Players will automatically become a Player for the purposes of the Regulations.


A5 Signing of a New Player on Loan during the Salary Cap Year

Prior RSCM approval pursuant to Clause 6 shall be required where one Club proposes to temporarily transfer the playing registration of a Player to another Club. For purposes of determining whether or not approval should be granted, the temporary transfer will be treated as a permanent transfer, ie as if the Player has departed from the first Club (see Clause A4) and signed permanently for the second Club (see Clause A3).

Comment to Clause A5: Any agreement reached between the Clubs as to who pays the Player’s salary (or any part thereof) has no relevance to the treatment of the Player in accordance with Clause A5, above.