The general perception of professional sportspeople is that they earn incredibly high salaries, but this may not always be the case. While you have good earning potential as a rugby player, you may be affected by the salary cap, which limits the total amount a club can spend on salaries each season.
In the 2024/25 season, the salary cap for Premiership Rugby was £6.4 million. Other leagues have different caps, which are often lower than the Premiership.
This means that while you could receive a healthy wage as a rugby player, there are limits to your earning potential, and it could be more difficult than you think to build financial stability.
Fortunately, with the right support, you can navigate the rugby salary cap and achieve your dream lifestyle.
Read on to learn five ways you could secure your financial future.
1. Explore alternative income sources
While your earnings from rugby might be limited by the salary cap, you are free to generate an income from other sources.
Many players earn additional income from sponsorship deals, for instance. This could be a useful way to supplement your earnings from playing. However, it is important to note that the income from certain sponsorship deals may be considered part of the salary cap.
Beyond sponsorship, you might earn income from media appearances or even starting your own business.
By finding alternative income sources, you can circumvent the salary cap and increase your earning potential. After you hang up your boots, you might leverage these other interests into a second career.
2. Invest your wealth for long-term growth
The rugby salary cap limits the amount you can earn from playing, so you may think there is a ceiling on the wealth you can build.
The good news is, if you invest a portion of your income, you can grow your wealth beyond this ceiling and improve your financial position in the future. Conversely, if you spend everything now, or leave it in a low-interest savings account, you may find it harder to achieve your financial aims.
Wealth you build from investing may be especially useful when you retire from rugby and try to establish a second career. You could use this wealth to help you start a new business, for instance.
Alternatively, your investments could help you generate part of your income after you finish playing. You might invest in properties or dividend-paying shares to help you achieve this.
We can support you in building an investment portfolio that provides financial security and opportunity in the future.
3. Start contributing to your pensions as early as possible
As well as your first retirement from rugby, you may want to think about your eventual second retirement when creating a financial plan.
Your pensions are an effective way to build wealth as you typically receive employer contributions and tax relief alongside your own payments. To add to this, the funds in your pension are invested and could grow over time.
Consequently, contributions to your pension might be more valuable than payments to other savings, especially if you start early and give your wealth more time to grow.
So, if you are concerned about the salary cap limiting your ability to save and invest, even modest contributions to your pension from an early age could help you secure your financial future.
4. Take steps to improve tax efficiency
When building wealth, you may want to consider the tax you pay, and whether there are ways to reduce your bill.
For example, saving and investing in an ISA could be beneficial because you do not pay Income Tax, Capital Gains Tax (CGT), or Dividend Tax on investment returns or interest you generate. There is no tax to pay when withdrawing the funds, either.
As of 2025/26, you can contribute up to £20,000 to your ISAs each year, and using this allowance before saving and investing elsewhere could help you manage your tax liability.
Your pensions are also a tax-efficient savings tool as there is no tax on your investment returns, and you benefit from tax relief on your contributions.
When building wealth outside tax wrappers such as ISAs or pensions, there might be certain tax implications. Fortunately, we can help you find ways to mitigate a large bill.
Ultimately, this means that you retain more of your wealth to spend now or save for the future.
5. Work with a professional financial planner
If you are concerned about the salary cap and how it could potentially limit your earnings, it is important to make the most of your income. By making optimal choices now, you can build long-term financial security.
Working with a professional financial planner gives you a framework through which to achieve this. We will discuss your financial aims with you and explore all the previous steps on this list.
Over time, with our support, you can secure your financial future, despite any cap on your salary.
Get in touch
If you would like to discuss your financial future, please do get in touch with DBL Asset Management.
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.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
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.