Following severe financial difficulties suffered by Featherstone Rovers, Halifax Panthers, Salford and North Wales Crusaders in the last six months Betfred Championship clubs have agreed the make-up of a stricter salary cap to be brought into the competition from 2027.

The RFL made the intervention as part of its strategic review into the sport and in a bid to ensure clubs do not over-spend.

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 – where currently Batley Bulldogs and Dewsbury Rams ply their trade – more financially stable and improve decision making by club boards.

Batley Bulldogs' former Featherstone Rovers playmaker Ben Reynolds in action in the Betfred Championship against Halifax Panthers on Sunday. Photo by Gerard Binks

placeholder image — Batley Bulldogs' former Featherstone Rovers playmaker Ben Reynolds in action in the Betfred Championship against Halifax Panthers on Sunday. Photo by Gerard Binks

The limits agreed by the clubs on Tuesday are set as follows:

* Revenue up to £600,000 - Cap Limit £250,000

* Revenue £601,000 –750,000 – Limit £300,000

* Revenue £751,000 - £999,000 – Limit £400,000

Revenue £1m plus – Limit £500,000

The RFL will now work with each club on an individual basis to confirm their salary cap based on turnover before the end of June, taking on board the last two years accounting period and audited accounts or limited assurance certificate.

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 this 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.

Clubs were also told of the proposal to reduce the number of non-federation trained players – currently unlimited - to seven from 2027 with this reducing again to five in 2028.

RFL chair Nigel Wood OBE, said: “Bringing a tighter salary cap into the Championship was a key component of the strategic review.

“It is surely beyond dispute that spending by some poorly run clubs has been unsustainable for a number of years and in many cases the inevitable then happens.

“Club financial failure is a contagious stain on the sport and causes considerable upheaval for all the other clubs in the competition some of whom have competed for decades without financial trauma.

“We want the rule book to protect and support the well run clubs as far as possible.

“Linking spend to income does not hamper progressive clubs looking to build but it should act as something of a hand brake on spending that is unsustainable.

“It also encourages clubs to maximise their revenue streams as, the more they generate, they more they are allowed to utilise on their squad and I am delighted that the Championship clubs have unanimously supported our proposals.

“I want to be clear that the responsibility for club financial performance lays solely on the club boards and management that are legally responsible.

“However, the RFL concluded that the regulatory framework needs to be stronger to assist some clubs in making better spending decisions, to avoid the numerous historical issues that have surfaced over the past few months."

The decisions will now go to the RFL Board for ratification.