- Tue Dec 28, 2021 3:00 pm
#42066
Leicester Tigers are at the centre of a Premiership Rugby salary cap inquiry into a defunct image rights company and allegations of historic third-party player payments.
Andrew Rogers, the league’s salary cap director, is understood to be investigating a company called Worldwide Image Management (WIM), which was closed voluntarily in February, and its links to the Gallagher Premiership club.
The investigation will seek to determine the exact nature of any payments made to Leicester players by WIM, what they were for and whether they would constitute a breach of salary cap regulations.
Sources have told The Times that “off the books” image rights payments were used in the past to boost player salaries outside of the salary cap. Leicester declined to comment but are understood to be cooperating with the inquiry in the belief they have done nothing wrong.
If any historic offences were to be uncovered, the impact could be devastating on a club that has transformed its fortunes on and off the field over the past two years. Leicester are top of the Premiership after ten consecutive victories and a precarious financial position is improving thanks to new sponsors coming on board.
Premiership Rugby regulations, updated last year, state a breach of the salary cap in excess of £200,000 could trigger a range of punishments including a 50-point deduction, a fine or automatic relegation.
“I know the company existed. I know there certainly were third party payments made and I know there is now an investigation with the salary cap manager,” a source told The Times. “This is a big deal.”
News of the inquiry emerged within weeks of England internationals George Ford and Ellis Genge, the club captain, announcing they would be leaving Leicester in the summer but those moves are not connected to the inquiry.
The rules governing the salary cap were strengthened after the Saracens scandal. The former champions were relegated after being docked 105 points and fined £5.36 million for breaching the regulations in four different seasons.
Rogers and Premiership Rugby’s salary cap office were handed stronger investigatory powers as part of an overhaul in November 2020, which permitted them access to tax returns, WhatsApp messages, emails and bank statements. Players must provide a declaration of expected income each year.
Salary cap investigators are permitted to look back five years. Andrea Pinchen, the Leicester chief executive, is understood to have been interviewed by Rogers as part of this inquiry, although the focus of the investigation is believed to be on the years before she was promoted into the role in May 2020.
Whether or not Leicester were spending to the salary cap limit in those years is also expected to be a factor in determining whether any breaches occurred. So too whether Rogers establishes any funding link between Leicester and WIM. Premiership Rugby has been contacted for a comment.
The Times knows of a different Premiership club that many years ago used an image rights company as a mechanism to boost players’ income outside of the salary cap. The arrangement would specify that a player should turn up to events in order to justify the income but they rarely had to.
When used previously it allowed the club to pay a player more than was declared to Premiership Rugby and potentially freed up space under the cap for an additional squad member.
WIM was wound up voluntarily after a dawn meeting on February 18.
One of its two directors was Anthony Lymn, a business partner of Kasper Schmeichel, the Leicester City goalkeeper. He describes himself on the website of his accountancy firm, Ashgates, as a “‘Trusted Advisor’ to Players (particularly Non-UK Domiciles) and one of the country’s leading Sports Tax Specialists”.
The other director was Justin Paige, a former rugby agent now based in Los Angeles.
The liquidators confirmed that the company had enough funds to pay off its debts. The company was set up in 1999 as GreatDray Limited and the name changed to WIM in 2002.
Lymn has been contacted for a comment.
Andrew Rogers, the league’s salary cap director, is understood to be investigating a company called Worldwide Image Management (WIM), which was closed voluntarily in February, and its links to the Gallagher Premiership club.
The investigation will seek to determine the exact nature of any payments made to Leicester players by WIM, what they were for and whether they would constitute a breach of salary cap regulations.
Sources have told The Times that “off the books” image rights payments were used in the past to boost player salaries outside of the salary cap. Leicester declined to comment but are understood to be cooperating with the inquiry in the belief they have done nothing wrong.
If any historic offences were to be uncovered, the impact could be devastating on a club that has transformed its fortunes on and off the field over the past two years. Leicester are top of the Premiership after ten consecutive victories and a precarious financial position is improving thanks to new sponsors coming on board.
Premiership Rugby regulations, updated last year, state a breach of the salary cap in excess of £200,000 could trigger a range of punishments including a 50-point deduction, a fine or automatic relegation.
“I know the company existed. I know there certainly were third party payments made and I know there is now an investigation with the salary cap manager,” a source told The Times. “This is a big deal.”
News of the inquiry emerged within weeks of England internationals George Ford and Ellis Genge, the club captain, announcing they would be leaving Leicester in the summer but those moves are not connected to the inquiry.
The rules governing the salary cap were strengthened after the Saracens scandal. The former champions were relegated after being docked 105 points and fined £5.36 million for breaching the regulations in four different seasons.
Rogers and Premiership Rugby’s salary cap office were handed stronger investigatory powers as part of an overhaul in November 2020, which permitted them access to tax returns, WhatsApp messages, emails and bank statements. Players must provide a declaration of expected income each year.
Salary cap investigators are permitted to look back five years. Andrea Pinchen, the Leicester chief executive, is understood to have been interviewed by Rogers as part of this inquiry, although the focus of the investigation is believed to be on the years before she was promoted into the role in May 2020.
Whether or not Leicester were spending to the salary cap limit in those years is also expected to be a factor in determining whether any breaches occurred. So too whether Rogers establishes any funding link between Leicester and WIM. Premiership Rugby has been contacted for a comment.
The Times knows of a different Premiership club that many years ago used an image rights company as a mechanism to boost players’ income outside of the salary cap. The arrangement would specify that a player should turn up to events in order to justify the income but they rarely had to.
When used previously it allowed the club to pay a player more than was declared to Premiership Rugby and potentially freed up space under the cap for an additional squad member.
WIM was wound up voluntarily after a dawn meeting on February 18.
One of its two directors was Anthony Lymn, a business partner of Kasper Schmeichel, the Leicester City goalkeeper. He describes himself on the website of his accountancy firm, Ashgates, as a “‘Trusted Advisor’ to Players (particularly Non-UK Domiciles) and one of the country’s leading Sports Tax Specialists”.
The other director was Justin Paige, a former rugby agent now based in Los Angeles.
The liquidators confirmed that the company had enough funds to pay off its debts. The company was set up in 1999 as GreatDray Limited and the name changed to WIM in 2002.
Lymn has been contacted for a comment.
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