Lawrence Dallaglio, the man widely expected to be the next England captain, is expected to take a 25 per cent pay cut to re-sign with Wasps, the club that he has played for throughout his professional career.
Contract negotiations between Lawrence Dallaglio and London Wasps have reached deadlock, and Dallaglio, 31, has been given a virtual "take it or leave it" ultimatum that would mean a salary reduction of £1,150 a week over the next two years.
Dallaglio, who gave up £30,000 of his club salary during the World Cup, earns about £240,000 a year. According to today's Times the opening offer from Wasps was for a 33 per cent cut -- equivalent to £80,000 less per year.
Dallaglio rejected this first offer and the gap narrowed after Warren Gatland, the Wasps director of rugby, became involved in negotiations in an attempt to break the impasse. The deal that is now on the table is worth £180,000 a year, which would still make Dallaglio the highest-paid player at the club.
Wasps have not set a deadline when they expect him to sign by but they are keen to bring the talks to a conclusion. For Dallaglio, who has a testimonial this year that could net him almost £1 million, it is a big decision and one that will take him to the end of his playing career.
Wasps are also in discussions with other England players, Joe Worsley, Stuart Abbott and Fraser Waters, as well as seven squad members who are out of contract this season. Until Dallaglio's position has been sorted out, the club does not know how much it will have to spend.
Gatland said last night: "I can't confirm details of what we may or may not be offering Lawrence, but I can assure you we are desperately keen for him to stay. However, we do also have a responsibility to 35 other players in the squad."
Dallaglio would not be short of opportunities if matters did not work out at Wasps. He has had approaches from France, but his heart remains with the London club where he has plyed his trade since he was a teenager.
After Wasps beat Sale a fortnight ago, Dallaglio said that he was optimistic that negotiations would be concluded shortly and that his ambitions of further success at club level could be met at Wasps. "The competitive desire is still there to play at the very top of the game," Dallaglio said. "This club is at the top of the game.
"But the deal has to be right. When you are negotiating, you have to look at the overall package. Money is also a factor. But it isn't just down to money."
For clubs though money is a huge issue, especially given the constraints of the £1.9 million a year wage cap. The absence of international players for long periods has prompted them to question whether it makes commercial and financial sense to have players such as Dallaglio in their squads. Only recently, Nigel Melville, the Gloucester director of rugby, predicted that central Rugby Football Union contracts seemed inevitable.