Super League clubs have proposed wage reductions to their players, coaches and employees in order to secure their survival.
Club officials sent letters to their employees throughout Thursday and Friday to outline their proposals for remodelled salary structures, with clubs using different models that were all designed to stabilise their clubs financially.
Most clubs have used an incremental model that sees employees lose a larger percentage of their salary for each bracket they move up on the pay scale, though the boundaries put on the pay scales, and the percentage reductions, differ from club-to-club.
This is what League Express understands to be the current position, club by club.
CASTLEFORD – A 20% reduction on salaries under £50,000. A 30% reduction on salaries over £50,000.
CATALANS – Will pay all salaries in full throughout April. A pay cut in the region of 15% likely to be in place by May.
HUDDERSFIELD & WAKEFIELD – A sliding scale system that will see employees lose a percentage of their salary that increases through each pay bracket they reach.
All employees will take a 20% reduction on the first £37,500 they earn.
Employees will take a 30% reduction on what they earn between £37,500 and £60,000.
Employees will take a 35% reduction on what they earn between £60,000 and £80,000.
Employees will take a 40% reduction on what they earn above £80,000.
HULL FC – A 0% reduction on employees on minimum wage.
A 20% reduction on salaries under £37,500.
A 35% reduction on salaries above £37,500.
HULL KR & WIGAN – A sliding scale system
All employees will take a 20% reduction on the first £37,500 they earn.
Employees will take a 50% reduction on what they earn above £37,500.
LEEDS – A sliding scale system
All employees will suffer no cuts on the first £39,999 of their salary.
Employees will take a 20% reduction on what they earn between £40,000 and £59,999
Employees will take a 30% reduction on what they earn between £60,000 & £79,999
Employees will take a 40% reduction on anything they earn above £80,000
SALFORD – Will pay all salaries in full throughout April. The club is currently deciding on the model from May onwards.
ST HELENS – Will pay all salaries in full throughout April.
TORONTO – A sliding scale system
All employees will take a 25% reduction on the first £40,000 they earn.
Employees will take a 50% reduction on what they earn between £40,000 and £100,000
Employees will also take a 50% reduction on what they earn above £100,000, but some payments will be deferred.
WARRINGTON – A sliding scale system
All employees will suffer no cuts on the first £29,999 of their salary.
Incremental rises up to 45% on earnings above £100,000.
AN EXAMPLE OF THE SLIDING SCALE SYSTEM
Using the model adopted by Huddersfield and Wakefield:
- An employee on a gross salary £100,000 would lose 20% of the first £37,500 they earn (£7,500)
- They would then lose 30% on the next £22,500 (£6,750)
- They would then lose 35% on the next £20,000 (£7,000)
- They would then lose 40% of the final £20,000 (£8,000)
That is a total reduction of £29,250, based on a 12-month cut. However, players and coaches have already received their salary for the first four months of the season, and therefore they will not lose that amount. If the cuts remain in place for the rest of the season, the total reduction would then be two-thirds of that figure, ie., £19,500, a wage reduction of 19.5% before tax. Tax would decrease the net reduction down to approximately 15% over the course of the year.
WHY HAVE CLUBS USED DIFFERENT MODELS?
Clubs have devised models to best incorporate their entire workforce. As illustrated above, many employees, predominantly players, on a salary between £40-80,000 would be affected differently, depending on which club they are contracted to.
The average Super League salary on a £2.1m salary cap is £84,000-a-year. However, many clubs use a salary cap model that includes players on in excess of £100,000, with others earning £40,000 or less.
Clubs have therefore used a sliding scale model, or adapted their pay brackets, to try and ensure nobody takes a disproportionate hit in relation to others.
HOW LONG WILL THE CUTS REMAIN IN PLACE?
Most clubs have informed players the cuts are initially in place through to November. However, there is an agreement to revise the situation in June. This has been decided so clubs can assess the state of their businesses once there is more clarity on several key factors:
- The size of government funding
- A continuance of Sky’s broadcast money
- When the season can be resumed
- The number of home games in a repackaged league structure
- The duration of the furlough scheme
- Support from commercial partners and season ticket holders
League Express understands that the players and coaches have accepted the proposals in place at the majority of clubs and have started to sign their agreements. However, discussions are still taking place at several clubs while there are some players at clubs across the competition that are still considering their options.
Meanwhile, many players are apprehensive about the period of time reductions are in place. While most clubs have promised a June revision, they have also warned that the reductions could become permanent for the season. Many players who have spoken to League Express do not believe pay reductions should remain in place once the season has resumed.
