European teams have a unique rule when it comes players' salaries. A salary cap has been around for a long time. Some are very accomodating and aren't worried at all by it. Others, like Barcelona in La Liga, are walking on fine lines of the rule.
Another recently discovered team struggling with it is French Top 14 (rugby) side, Toulouse. It's so bad that a court appearance is necessary.
A salary cap is a rule or agreement setting a maximum limit on team spending for player salaries, primarily in professional sports, to ensure competitive balance and financial sustainability, though it also appears in business for roles. It's negotiated between leagues and players' unions, affecting team payrolls, roster building, and financial strategies, with rules varying by league
Toulouse head into Saturday’s Investec Champions Cup showdown against Glasgow Warriors with more attention on the courtroom than the pitch, as a fresh salary-cap investigation threatens to derail their campaign.
The six-time European champions – led by superstar, Antoine Dupont – spent last Monday defending themselves before a French national league (LNR) disciplinary panel over the 2022 transfer of fullback, Melvyn Jaminet, a move worth almost R9-million that the league believes may have breached Top 14 salary-cap rules.
The consequences could be severe, with a potential league points deduction hanging over France’s most decorated club. Toulouse’s lawyer, Bruno Cavalie, refused to comment after the hearing in Paris, saying simply: "There will be no statement for now. We’ll see once the decision has been made."
This isn't the first time the Jaminet deal has caused trouble. The saga has hung over the club for months and Toulouse have already paid over R25-million to the LNR as part of a settlement in March.
Head coach, Ugo Mola, tried to steer the focus back to rugby after last weekend’s win over the Sharks but admitted the situation is impossible to ignore. "Crying before being hurt would be useless," Mola said. "Obviously there might be consequences. We will take responsibility for them, as we always have done.”
Despite the noise, Toulouse must now travel to a fired-up Glasgow side who opened their Champions Cup campaign with a statement victory away to Sale Sharks (an English side). With the pressure building, they’ll look to Dupont, who’s set for his third game back from a serious knee injury, to steady the ship.
For Mola, Glasgow represent the biggest threat in their pool. "They’re a good side who have been in constant progression for a few seasons now."
Top 14 giants Toulouse have subsequently been ordered to pay €1.3 million after breaching France’s salary cap regulations in a transfer deal involving fullback Melvyn Jaminet.
The LNR confirmed the penalty after a mediation process resolved financial irregularities surrounding Jaminet’s 2022 move from Perpignan.
The controversy stemmed from a €450 000 release clause from fellow French side, Perpignan, Jaminet had to pay to exit his contract. Rather than covering the fee directly – which would've counted toward the club’s salary cap – Toulouse allegedly used a third-party entity to sidestep the cap.
"At the end of the mediation session held under the rules of ethics and sporting fairness – Salary Cap, between the Salary Cap Manager appointed by the National Rugby League and the Stade Toulousain Rugby club, a resolution was reached regarding the situation of the player Melvyn Jaminet," the LNR stated. "Consequently, the LNR has imposed a contribution of €1.3 million (R25m) on the club."
Jaminet’s time at Toulouse ended in late 2023 after limited game time. The saga escalated further when he and Toulon president, Bernard Lemaitre, demanded repayment of his transfer loan. Following an LNR investigation, Toulouse opted for mediation rather than a disciplinary hearing.
The club has now committed to a compliance program to ensure future adherence to ethical and financial regulations.
I believe teams should get their finances in order to better understand their current position. By doing this, they won't risk any financial penalties. Receiving such penalties can severely affect the team involved in future dealings.
I also believe that Toulouse did the right thing by accepting the punishment and not fighting it. There's absolutely no need to drag this any further. Setting up a program for this can be hugely beneficial for the club moving forward.