The Rugby Paper  |  24th July 2016
CLUBS FACE MELTDOWN IN SPITE OF CASH BOOM
Gloucester chief executive Stephen Vaughan fears Premiership clubs face
financial meltdown unless steps are taken to curb rampant wage inflation. Vaughan’s stark warning comes as the RFU are set to announce a new eight year heads of agreement with Premiership Rugby which, as revealed by The Rugby Paper in April, will see clubs double the money they receive from the Union to £220m. With TV and sponsorship revenue, individual clubs can expect to receive in excess of £6m from central funding next season. But with the salary cap rising to £6.5m and then £7m from 2017-18, Vaughan believes a chance to stem losses is being wasted.
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