Welsh teams to introduce salary cap

The four Welsh regions have announced that they will operate under a salary cap from the start of next season as part of a landmark agreement designed to deliver long-term sustainability in the professional game in the principality.

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

The Welsh regions have seen an exodus of star talent in recent seasons, with several players, including James Hook, Mike Phillips and Lee Byrne, choosing to join wealthy French clubs.

Stuart Gallacher, chairman of Regional Rugby Wales, the umbrella body which represents the regions, said: “This is a significant step forward for regional rugby in Wales and the future viability and balance of our four rugby businesses that are so vital to the development and promotion of the game in Wales.

“The regions have come together with a shared sense of responsibility to get their own houses in order and find solutions. This agreement is the start of that journey.”