MARK SINDERBERRY, Saracens' chief executive, has refuted suggestions that the Men in Black's vast summer spending spree will see them exceed the salary cap.

Sale owner Brian Kennedy, angered at seeing four of his squad follow Steve Diamond through the exit door at Edgeley Park, had hinted in a thinly-veiled attack in one national newspaper that some clubs are breaching the wage cap regulations.

However, the Men in Black's decision to release 12 players in the summer will create sufficient space to fund the raft of summer signings, which could reach as many as 14.

Said Sinderberry: "When you don't announce the players you are releasing straight away, the immediate assumption is that with all the players we are bringing in, how are you going to be able to afford all that?

"With the number of players coming off contract there is an opportunity to make significant changes and we have done that while remaining under the confines of the wage cap."

Sinderberry, who admitted that Sarries continue to operate at loss but anticipates the club breaking even in two years time, supported Premier Rugby's decision to keep the salary cap in place for at least another season.

Although the cap, which governs how much clubs are allowed to spend on players' wages per season, will rise by 3 per cent to £1.97m per club next season a figure that includes employers' national insurance contributions as well as fringe benefits such as cars and houses some club owners have suggested that the sport, on the back of England's World Cup winning exploits, is healthy enough to allow clubs to shell out more in wages.

"I think the salary cap has served a purpose and has been part of the success of Premier Rugby developing," said Sinderberry.

"It's good we have a system in place in rugby that controls the amount that is spent on players.

"What is probably worthwhile asking now is 'is it at the right level given the number of clubs who are starting to be profitable?'"

The cap has allowed rugby to avoid the pitfalls of football where escalating players wages are causing many clubs to face severe financial difficulty as well as ensuring club's compete on a level playing field.

Howard Thomas, chief executive of Premier Rugby said: "The reason the cap is there is because the industry needs it and it would not survive in its present form without it."