Premiership clubs close contract loophole after Jonny May deal

English Premiership clubs vote in favour of closing the contract loophole that enabled Jonny May to join Leicester Tigers.

English Premiership clubs have closed the contract loophole which enabled Jonny May to join Leicester Tigers from Gloucester Rugby for a fixed-compensation fee.

All 12 top-flight teams voted unanimously to amend the stipulation over concerns that it could plunge the rugby union transfer market into chaos, reports BBC Sport.

Before the amendment was made, a player could be bought out of his contract for a set transfer fee, a one-off payment of a year's salary based on what the buying club is offering or what he is currently being paid, whichever amount is higher.

Under the new system, the fee will become a negotiation between the two clubs, which will fall outside of the salary cap.

The change was introduced to prevent teams from poaching players from smaller clubs which pay smaller salaries, as well as preserve competitiveness and equity in the Premiership.

The Rugby Players' Association was not consulted about the vote.

Jonny May in action during an England training session on August 4, 2015
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