The Rugby Football League (RFL) have confirmed that a salary cap will be introduced in the Championship for the 2027 season, with four separate cap limits to be put forward based on a club’s revenue.
Despite the top flight of rugby league in the UK, Super League, having a salary cap, no such spending limit exists in the Championship and the allure of making it to Super League has at times seen second-tier clubs overspend in a bid to earn promotion.
Overspending has been rife with several clubs recently having financial events with two of the current 20-team Championship on points deductions related to financial reasons, whilst Featherstone Rovers did not start the season on account of their issues.
In a bid to counter future problems, the RFL have confirmed a salary cap for 2027 in what they have labelled as a ‘bid to ensure clubs do not over-spend’.
A statement read: “The fundamental principle is that, from next year, the amount a Championship club can spend on players will be directly correlated to the income that club can generate.
“It is hoped that the move will help make the Championship more financially stable and improve decision-making by club boards.”
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Championship salary cap introduced in bid to save rugby league clubs from going under
A club’s salary cap will be linked to their revenue with the minimum cap being £250,000, whilst the highest is £500,000 but that is only for clubs with a revenue of £1,000,000 or more.
Revenue up to £600,000 will see clubs have a cap of £250,000, between £601,000 and £750,000 is a £300,000 cap, and for clubs with a revenue of £751,000 to £999,000, spending is capped at £400,000.
The process now begins for the RFL to confirm club’s salary caps based on their last two years, with confirmation of each club’s cap set to be done by the end of June.
One key matter is that clubs can apply for an increased cap but that is subject to a five-stage test. The governing body’s statement reads: “There will be scope for clubs to apply for an increased Cap spend and transitionary arrangements will apply to clubs who already have existing contractual commitments.
“But any application for increased Cap spend is subject to a five-stage test, involving considerations such as unpaid HMRC, pension payments arrears and/or being in special measures, and leads to a higher surety being required plus RFL Board approval.”
Another major change is that non-federation trained players will be limited to seven for 2027 and then five for 2028, effectively meaning less overseas players will play in the competition with a drive to promote homegrown talent instead.
