Cash for new players

[Wee Bunz]

With Humph retiring, JH away to Bath and to a lesser extent Wilson/Best/McMillan/Bowe all gone, we should have the spare contract cash to recruit at least 2 top players.

What would it take to persuade a current AB, Wallaby or Springbok?? What would they expect to earn?

Or should we be targetting closer to home. An Englander or an Italian?? Maybe a decent Welsh prop?

WB

[mikerob]

In a recent interview with Mike Reid, he said: "the costs for example for Latham were £260k basic, but when you add on agent’s fees, accommodation, car, flights, healthcare package and so on, we’re talking of £350k per year."

Latham is 32... I'd imagine that someone like Doug Howlett who is a few years younger may be on even more.

[Wee Bunz]

In a recent interview with Mike Reid, he said: "the costs for example for Latham were £260k basic, but when you add on agent’s fees, accommodation, car, flights, healthcare package and so on, we’re talking of £350k per year."

Latham is 32... I'd imagine that someone like Doug Howlett who is a few years younger may be on even more.

And of course Munster are able to avail of the Sports Tax Relief for Professional Sports.

I wonder is this taken into account when IRFU are rubber-stamping an Ulster contract??

WB

[Rooster]

Carl Hayman's contract with Newcastle is supposed to be £1 million for 2 1/2 seasons or £350 k a year depending on who reports it.
Chris Jack also around £300k per season.
Luke McAlister £250 per season

[Rooster]

And of course Munster are able to avail of the Sports Tax Relief for Professional Sports.

I wonder is this taken into account when IRFU are rubber-stamping an Ulster contract??

WB

I would doubt it

[Wee Bunz]

Bout the same as Humph then.........

WB

[mikerob]

In a recent interview with Mike Reid, he said: "the costs for example for Latham were £260k basic, but when you add on agent’s fees, accommodation, car, flights, healthcare package and so on, we’re talking of £350k per year."

Latham is 32... I'd imagine that someone like Doug Howlett who is a few years younger may be on even more.

And of course Munster are able to avail of the Sports Tax Relief for Professional Sports.

I wonder is this taken into account when IRFU are rubber-stamping an Ulster contract??

WB

I think a player can only claim Sports tax relief if they finish their career in Ireland... and presumeably a player wouldn't be able to claim it until the next tax year after they retire. I don't think this benefit is that applicable in Howlett's case. He is only 29, so may not retire in Ireland and hang around a year or two to claim the benefit, as he could go back to play in NZ (or Japan, or Italy...) after his time with Munster.

I believe Munster has more money to play with than Ulster because they've qualified for the later stages of the HEC 9 years running and I seem to remember reading that some business interests in Munster have contributed towards Howlett's wages (and did so for Cullen before him)

[Wee Bunz]

But I thought the arrangement with IRFU was that the Provinces had a cap regarding cash earned, after that the overflow went to Dublin.

Hmmmm..... If this is not the case then it would make you wonder where all the cash from '99 ever went to????

WB

[mikerob]

But I thought the arrangement with IRFU was that the Provinces had a cap regarding cash earned, after that the overflow went to Dublin.

Hmmmm..... If this is not the case then it would make you wonder where all the cash from '99 ever went to????

WB

I think it is the opposite - all money above a certain threshold is kept by the branch.

The UB would have got a boost from '99 but this would be peanuts compared to Munster's 9 Quarter Finals, 6 Semi Finals and 3 Finals since then.

[Wee Bunz]

But I thought the arrangement with IRFU was that the Provinces had a cap regarding cash earned, after that the overflow went to Dublin.

Hmmmm..... If this is not the case then it would make you wonder where all the cash from '99 ever went to????

WB

I think it is the opposite - all money above a certain threshold is kept by the branch.

The UB would have got a boost from '99 but this would be peanuts compared to Munster's 9 Quarter Finals, 6 Semi Finals and 3 Finals since then.

True.

WB

[Rooster]

Don't think there was the same cash in the system back in 99 WB
Howlett is partly paid by some outsider who previously paid for Cullen or so the story goes.
Heyman and some of the other big names across the pond are partly paid by sponsors which means they can probably stuff them through their tax system in some legalised fiddle as most big firms do to survive anyway, which will cover big wages and pay small net tax.
Often wondered is it possible for a player or a couple of players to form a limited company and sub contract their skills to Ulster Rugby and get themselves taxed through the corporation tax system, it could be a huge benefit to those on higher wages if it is possible.

[mikerob]

There is a (legal) scam where the player gets a token salary but club pays a lot more money to an offshore company owned by the player, for the player's "image rights". The club doesn't have to pay national insurance on this, the player pays corporation tax and when the player leaves, they can liquidate the company and only pay capital gains tax. This is all more "efficient" than paying income tax and is widely used by GP clubs to get around the salary cap.

[browner]

Mikerob wrote..............

I think it is the opposite - all money above a certain threshold is kept by the branch.

Curious about this as well...................i thought the branch kept the first 750,000, everything above this the IRFU took a percentage.

[Rooster]

Heard of that one mikerob, but the other is bound to be an option, there is even a company code for "sports" Pay the company for use of player and player who would be director of company only lifts basic wage below tax threshold and pays himself dividend each year which is only taxed at capital gains rate, someone is bound to have thought of it before

browner I thought that was changed and UR gets all gate receipts now

[browner]

browner I thought that was changed and UR gets all gate receipts now

Maybe it has ................i wouldn't argue.