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Payment and Contracts

This is a discussion for the topic Payment and Contracts on the board Other Senior Rugby.

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Rugby01

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on: September 30, 2016, 07:36:40 PM
The Midlands have advised all their clubs about the necessity to contract players if the player is receiving a material benefit from playing rugby.

Not sure if the North are planning similar advice, but then again, perhaps it's not needed?

(Sorry the posting is a bit long)

Note - I have added the names of the two clubs who were caught out last season.


Letter from chairman of Midlands 1/9/16 – on North Midlands web site.

http://www.northmidsrfu.co.uk/important-information-payment-players-receipt-material-benefit/


Important information on payment of players and receipt of material benefit  The following letter has been sent to clubs by Paul Kaminski, chairman of the Midlands Division Organising Committee.

North Midlands have organised workshops on the subject in each of three Domestic Unions which clubs are strongly advised to attend.
The workshops will be held at: Malvern RFC on October 5, Birmingham Exiles on October 12 and Newport on October 19

Letter from Paul Kaminski:
Dear Rugby Colleague,
Please note that this is a letter sent to all clubs competing in the Midlands Division of the RFU English Clubs Rugby Union Championship. It should not be interpreted as an allegation or inference against any individual club, but rather as general advice to all clubs.

Most of you are probably aware that during the immediate past season, two clubs (one in the South East {MEDWAY} and one in the Midlands {BROMSGROVE}) were charged by the RFU with failing to contract players who had received payment and/or material benefit. In the case of the SE club there were also issues with relation to immigration and HMRC. This club was dealt with most severely, with the consequence that the club suffered relegation and some of its officers were suspended from involvement with rugby union. The Midlands club’s offences were relatively minor in comparison and confined to the contracting of players. Nevertheless, even in this case, the club will commence the coming season with a 5 points deduction and a further 20 points suspended.
With the above in mind, I can tell you that a check of the registration lists of Midlands clubs reveals that less than a handful (with fingers to spare!) show any contracted players. It is true that it can take some weeks for the RFU to approve contracts and therefore there may be some in the pipeline. However, it stretches credulity to believe that so few players in the Midlands at levels 5 and below receive any payment or material benefit. Therefore, I believe it is incumbent upon the MDOC to remind clubs of their obligations in these matters.
1. Where the club registers overseas players, it is obliged to ensure that the Law regarding immigration and visas is fully complied with.
2. Where the club pays players or gives material benefit, even of a minor nature, this is subject to taxation and the requirements of HMRC must be fully met.
3. Where the club pays players or gives material benefit, even of a minor nature, such players must be in receipt of a written contract and that contract submitted to the RFU.
If a club has any doubt with regard to 1 and 2 above, it should seek professional advice. If a club has any doubt with regard to 3 above, advice can be sought from the RFU.
It is not the direct responsibility of the MDOC to police or pursue any of these matters. Nonetheless, should any potential breach or allegation be notified to the MDOC, it would be obliged to forward this to RFU Discipline for further investigation.
I have also been informed that RFU Discipline may be considering a more active role, perhaps selecting clubs at random or by using an intelligence led approach. Clubs need to be on guard in ensuring they are compliant and if not then acting with urgency to ensure compliance.
Please see below for a copy of the RFU rule regarding players’ contracts.
My apologies for the nature of this letter, but I am sure you will understand its intention.
Best wishes for the coming season,
Paul Kaminski
Chairman, MDOC.

Payments & Benefits to Players – Please refer more fully to the RFU Game Communication circulated 2 April 2016 of which the below is an extract.
The RFU has in place a number of Regulations that must be adhered to if a Player receives any Material Benefit for playing Rugby Union. The definition of Material Benefit is broad and includes:
“money, consideration, gifts or any other benefits whatsoever contracted, promised or given to a person or at his direction, but does not include reimbursement of proper expenses incurred for reasonable travel, accommodation, subsistence or other expenses
incurred in relation to the Game and as particularised in RFU Regulation 7.3.”
Therefore, if a Club (or other third party) pays a Material Benefit to any Player (whether playing in the community or professional game), there must be a contract in place with that Player (RFU Regulation 7.2) and the Player must be Effectively Registered
as a contracted Player (RFU Regulation 14.6.3) in accordance with the specific process set out for Contracted Players.
Clubs and Players are also reminded that there are certain legal requirements that must be followed if providing or receiving any Material Benefit, for example by complying with:
– Applicable immigration laws for players coming from abroad and/or not holding a
British passport.
– All tax requirements imposed by HMRC (such as PAYE, income tax payments, autoenrolment
etc.).
– Employment legislation.
– National minimum wage legislation.




Rugby01

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Reply #1 on: September 30, 2016, 07:52:33 PM
Further evidence of wrong doing

http://www.englandrugby.com/mm/Document/Governance/Disclipine/01/32/06/02/OldDunstonians512JudgmentSep16_English.pdf

RFU Judgement on 12 September for March offence.
Old Dunstonians deducted 15 points ( 3 players x 5 points each) and 2 officials sanctioned for paying air fares.


old style prop

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Reply #2 on: September 30, 2016, 08:01:23 PM
So from that if any club paid air fair for a player they had better make sure the paperwork is in order as it won't take the rfu much to track down overseas players and ask them for a copy of receipts.


Rob13

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Reply #3 on: September 30, 2016, 09:54:12 PM
Can't see how they could enforce that OSP.How did you get here?Show us the receipts for your flights and bank account for the last year to make sure the club hasn't paid for it.Grey area if you ask me.


old style prop

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Reply #4 on: September 30, 2016, 10:40:03 PM
Its not a court of law rob - i suspect the RFU would assume that any overseas players did have their flights paid for by the club, or someone connected to the club, unless the player could prove otherwise. It would be a bit like the tax man in that your assumed to be guilty unless you can prove that you are innocent.

Be interested to see how many contracted players we have in Yorkshire at level 6 and below.


Oldandslow

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Reply #5 on: October 01, 2016, 07:38:44 AM
Its not a court of law rob - i suspect the RFU would assume that any overseas players did have their flights paid for by the club, or someone connected to the club, unless the player could prove otherwise. It would be a bit like the tax man in that your assumed to be guilty unless you can prove that you are innocent.

Be interested to see how many contracted players we have in Yorkshire at level 6 and below.

OSP it's not a court of law but it is a quasi judicial hearing and any decision could be subject to judicial review by the courts.

Many players coming to the UK are sponsored by third parties, the RFU position cannot stop that. Further sponsorship of players who meet certain criteria such as commonwealth  graduates under 25 or who qualify under the township scheme is regarded as giving to charity abd tax deductable.

So all clubs need to do is get a members business to sponsor the player job done no comeback.


Red Horseman

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Reply #6 on: October 01, 2016, 08:19:12 AM
Not clear how RFU got involved in the first place, but reading this, the only evidence came from an admission by the club Pres that they had misled the RFU after an initial "investigation" couldn't prove anything. Publishing the ins and outs will only provide clues to others as to how to get round the system.

Anyway, there's a clear business opportunity here. Anyone want to join me in getting a bid together to put to the RFU to provide an Overseas Player Investigation Service?
LIFE IS TOO SHORT TO DRINK CHEAP WHISKY.


avinastella

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Reply #7 on: October 01, 2016, 09:39:19 AM
There's also the awkward matter of HMRC and CASC to consider.
"Bother!" said Pooh, as he found his smack had talc in it.


avinastella

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Reply #8 on: October 02, 2016, 12:10:23 PM
Out of interest, where does this offer stand with regards to Benefits in kind/material gain?
http://www.pitchero.com/clubs/leodiensian/news/student-in-leeds-want-to-play-rugby-for-free-1693972.html

Seems harmless enough, but...
"Bother!" said Pooh, as he found his smack had talc in it.