As a professional rugby union player, you can now earn a good six-figure salary, which may increase exponentially if you play for your country.
It is also possible to boost your earnings through sponsorship and endorsement opportunities.
However, that has not always been the case. Indeed, in the 130 years from the evolution of the game in Victorian Britain until almost the end of the 20th century, earning an income from playing the sport was forbidden.
Learn how rugby has changed over the last 30 years, how this led to the sort of earnings you see today, and why this makes expert financial planning so important.
Rugby Union remained an amateur sport until 1995
From the initial split with association football in 1863 into the 1990s, rugby union players were not paid to play.
While other sports enjoyed a demarcation between amateurs and professionals, this was not the case for rugby union, which remained resolutely amateur.
This led to the “great schism” in 1895, when northern clubs broke away to create a professional version of the sport, which became rugby league.
Even the globalisation of the game through the 20th century, and its becoming a highly popular televised sport, did not alter the stubbornness of the authorities on the issue of professionalism.
Even club leagues were considered an affront to the amateur code and remained banned until the 1980s.
Everything changed in 1995
A confluence of events in the space of a few months in 1995 created an unstoppable momentum towards professionalism.
In the spring of that year, rugby league announced the launch of the UK Super League, driven by an £87 million TV deal with Sky. The money flowing into the sport made it inevitable that rugby union players around the world would be tempted to switch codes.
Then, at the 1995 World Cup in South Africa, Jonah Lomu became the first world rugby superstar. In the same year, an iconic picture of Nelson Mandela and South African captain Francois Pienaar put rugby on the front pages of newspapers all over the world.
It became clear that the International Rugby Board (IRB) stance was unsustainable, and on 26 August 1995, they confirmed that rugby union would become an “open” sport.
Poignantly, it was almost exactly 100 years to the day since the great schism took place.
Top players faced a difficult decision when the game went professional
The sudden move to professionalism without any advance planning or phasing resulted in countries and clubs reacting differently to the new financial regime.
Some clubs struggled to raise funds and players faced challenging decisions, such as giving up a potentially lucrative career outside rugby to become a full-time professional.
On the one hand, some saw a big boost in their income. According to W Rugby, the £20,000 salary Matt Dawson was paid by Northampton RFC in the 1995/96 season was more than twice his earnings from his job as a PE teacher. At the same time, the Independent confirmed that the first England international professional contracts could be worth as much as £40,000.
However, despite these figures, there was a lack of financial security for some, especially those at London clubs who previously had well-paid jobs in the City of London.
Player salaries have increased steadily since the introduction of a salary cap in 1999
Previously, there was a stark disparity in player salaries from club to club. For example, according to Rugby Journal, in 1997/98 Richmond had a squad wage bill of £2.5 million thanks to the support of a rich benefactor, while other clubs were not so well-funded.
When their financial plug was pulled in 1999, the club had to start again from the bottom of the rugby pyramid. Other clubs with a more cautious approach were able to manage, but Richmond was not the only club to struggle.
To help avoid that kind of upheaval, introduce an element of financial control, and create a more level playing field, Premiership Rugby introduced a salary cap in 1999. This created some stability for both teams and players.
The cap had reached £2.1 million in 2007, and then £4 million the following year.
Figures published by Ruck show a steady increase in the salaries of top players throughout the first two decades of the 21st century. For example, Lawrence Dallaglio was the highest-paid player in the Premiership in 2005, earning £300,000. Ten years later, Sam Burgess became the first player with a salary of £500,000 while playing for Bath.
In the same year, the average Premiership salary was £100,000. By 2023/24, according to the Premiership Rugby salary cap report, the average salary was around £156,000.
The importance of financial advice and guidance
The attractive salaries and other sources of earnings through the game make it possible to enjoy a lucrative career as a top professional player.
However, such a career will present you with financial challenges specific to professional rugby.
For example:
- There is the ever-present risk of serious injury, which means you need to take steps to protect your income if you are unable to play.
- Your professional career is going to be limited, so you need to maximise your earnings while you can.
- You will need to plan ahead for your post-rugby career once you are no longer playing professionally.
There are also other, more generic financial planning issues, such as setting aside money to fund your retirement, building an investment portfolio, and longer-term estate planning.
All of these underline the importance of obtaining expert financial advice, which will enable you to put a robust plan together and then review it regularly.
Get in touch
If you need help with your financial planning, we can support you.
Email enquiries@dbl-am.com or call 01625 529 499 to speak to us today.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate tax planning or estate planning.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.