Saracens have been docked 35 points and fined £5million after being found guilty of breaching the salary cap, in a bombshell ruling that follows a Sportsmail investigation.

In a move that will send shockwaves through the rugby world, the Premiership and European champions received the biggest sanction in the history of the Premiership, after arrangements between their multi-millionaire owner Nigel Wray and star players including Owen Farrell were scrutinised.

Saracens will remain in fourth place in the table with an asterisk against their names explaining that this is subject to review.

Premiership Rugby and European champions Saracens have been docked 35 points and fined £5.3m after being found guilty of breaching the salary cap

Owen Farrell (pictured) is among the Saracens players who had co-investment arrangements with owner Nigel Wray

In March, Sportsmail published the findings of a four-month investigation into Saracens and their owner Wray (pictured here with the Premiership trophy after their title triumph in 2018)

PRL STATEMENT The Independent Panel - which conducted a hearing over five days in September and October 2019 - was chaired by the Rt. Hon. Lord Dyson, who was joined on the panel by Aidan Robertson QC and Jeremy Summers. The decision of the Independent Panel is that Saracens Rugby Club failed to disclose payments to players in each of the seasons 2016-17, 2017-18 and 2018-19. In addition, the Club is found to have exceeded the ceiling for payments to senior players in each of the three seasons. The Panel therefore upheld all of the charges. The sanction that has been imposed on Saracens Rugby Club by the panel is: A total fine of £5,360,272.31 and a total deduction of 35 league points. The Salary Cap Regulations stipulate that a points deduction may be imposed in the current season (2019-20) only. The sanction has no bearing on any other domestic or European competition. Advertisement

Premiership Rugby had updated their table putting Saracens bottom on -26 points but this was later changed as the punishments are suspended pending the outcome of a review. That could take until the New Year to complete.

The significant punishment comes after a complex seven-month investigation involving Premiership Rugby (PRL) and then specialist arbitrators Sport Resolutions, the outcome of which was delayed during the Rugby World Cup so as not to derail England's campaign.

However, the judgment has now been confirmed with a statement from Premiership Rugby (PRL) as well.

'The decision is that Saracens failed to disclose payments to players in each of the seasons 2016-17, 2017-18 and 2018-19,' it reads. 'In addition, the Club is found to have exceeded the ceiling for payments to senior players in each of the three seasons.'

Following the PRL's decision, Saracens responded with a statement of their own on Tuesday morning where they confirmed they would appeal 'all the findings'.

'Saracens Rugby Club is shocked and disappointed by these heavy-handed sanctions and will launch an appeal against all the disciplinary panel's findings.

'The Club is pleased the Panel acknowledged it did not deliberately attempt to breach the salary cap and steadfastly maintains that player co-investments do not constitute salary under the regulations. This view is supported by independent legal and professional experts.

'The Club will continue to vigorously defend this position especially as PRL precedent already exists whereby co-investments have not been deemed part of salary in the regulations.

'As previously stated, the Club made administrative errors relating to the non-disclosure of some transactions to PRL and for this we apologise. We are pleased to confirm we now have a robust governance framework in place and this will be overseen by an external counsel to ensure the Club follows best practice.

'Furthermore, it is the Club's belief that the Panel's narrow interpretation of the regulations is detrimental to player welfare across the league and is damaging the development of elite level rugby in the UK.

'Saracens is proud of its pioneering, innovative approach to player welfare, developing their talents and supporting their entrepreneurial spirit for life beyond rugby.'

Maro Itoje (left) is one of the high-profile players to have a financial arrangement with Wray

Saracens owner Wray was quick to release his own statement calling the verdict 'devastating'.

'For over 25 years, I have put my heart and soul into the game I love. Together we have created something incredibly special with the Saracens family, both on and off the field.

'This is absolutely devastating for everyone associated with this amazing group of players, staff, partners and fans. It has been acknowledged by the Panel that we never deliberately sought to mislead anyone or breach the cap and that’s why it feels like the rug is being completely pulled out from under our feet. We will appeal all the findings.'

The scope for any review is limited, with the regulations stating that it 'can only be on the basis that there has been an error of law, the decision is irrational or that there has been some procedural unfairness.'

The sanctions will be suspended pending the outcome of the review.

HOW SPORTSMAIL LED THE WAY... In March, Sportsmail revealed how Saracens owner Nigel Wray had gone into business with England captain Owen Farrell and three other senior members of the squad, raising questions over whether they have broken salary cap regulations. In March, Sportsmail revealed how rival clubs were set to call for an inquiry as the details of Saracens' owner Nigel Wray's arrangements with England stars were raised Since then, Premiership Rugby confirmed Saracens had not declared the details of the co-investment arrangements, which were revealed by Sportsmail, leaving Sarries facing major sanctions. Premiership Rugby confirmed Saracens had not declared all co-investment arrangements between players and the owner Wray back in April Sportsmail continued to lead the way, reporting on the delay to the results of the inquiry - due to fears of derailing England's Rugby World Cup bid - and Saracens' salary cap chief quitting. Premiership Rugby held back on announcing the results during the Rugby World Cup and Sportsmail revealed the exit of Saracens finance chief Bernard van Zyl Advertisement

In March, Sportsmail published the findings of a four-month investigation into Saracens's financial arrangements, revealing investment partnerships between Wray and top players including Farrell, Maro Itoje and Billy and Mako Vunipola.

The expose also uncovered property-sharing arrangements between former Saracens players and Wray, who has been involved with the club since 1995 and is worth an estimated £315m. PRL launched a formal review in April, and it is understood the case was then passed to Sport Resolutions for a formal disciplinary panel late in the summer.

The scope of PRL's case has never been disclosed, and the regulations allow investigations to go back five seasons.

The maximum sanction available to the panel was 35 points for a breach of more than £600,000.

There will inevitably be questions about what happens to Saracens's previous titles - they have been Premiership champions in four out of the last five seasons and European champions three times - and whether they will need to make changes to their current squad to fall within the cap. The Premiership titles won in 2017-18 and 2018-19 as well as the European crowns won in 2016-17 and 2018-19 are at risk as they are the seasons where they were found to have overspent.

England star Elliot Daly (left) will be joining Saracens this season after leaving Wasps last term

SARACENS Q&A: WHY ARE THEY GUILTY AND WHAT HAPPENS NEXT What has Saracens been found guilty of? A specialist disciplinary panel has found Saracens guilty of breaching Premiership Rugby's (PRL) salary cap, and has imposed the maximum points deduction of 35 points and a fine of £5.36million. PRL say that they brought charges in June following a seven-month investigation. The scope of the case remains confidential but the judgment said: 'The decision is that Saracens failed to disclose payments to players in each of the seasons 2016-17, 2017-18 and 2018-19. In addition, the Club is found to have exceeded the ceiling for payments to senior players in each of the three seasons.' Sportsmail's four-month investigation, published in March, found that the club's multi-millionaire owner Nigel Wray went into business with some of his best players, through investment companies set up in the names of the players, with Wray as a shareholder. Wray had previously contested that 'investment is not salary' and likened these arrangements to his public support of coffee and brewing companies set up by players. What is the salary cap? The salary cap is intended to level the playing field within the Premiership by setting a limit on what clubs can spend on their playing and academy squads. The basic salary cap is £7m but this does not include the salaries of two marquee players and extras such as injury credits. Premiership Rugby employs a salary cap manager whose role it is to oversee the cap and investigate clubs where necessary. Each season, clubs must submit a projected salary cap audit, and then a declaration on what they spent at the end of each season. How did England stars get caught up in this mess? England captain Owen Farrell, who is a graduate of the Saracens academy, went into business with Wray in 2017 as shareholders in an investment company called Faz Investments Ltd. Mako and Billy Vunipola were made directors of a company called Vunprop Limited in 2017, which names the two players and Wray as its shareholders. Similarly, Maro Itoje - who has been at Saracens since 2012 - and Wray are shareholders of a firm MN Property Solutions Limited, which was set up in 2016. Richard Wigglesworth, meanwhile, is a joint shareholder with Wray in Wiggy9 Investments Limited. Are the players guilty of anything? The judgment concerns Saracens only, and takes no action against the players, and there has been no allegation of wrongdoing directly levelled at the players. The salary cap is a matter for clubs to comply with. It is not clear how much the players knew about the operation of the salary cap and whether these arrangements were permitted. The RFU has no power to police the salary cap as it is a PRL regulation, but could choose to launch disciplinary proceedings against players if it was felt their involvement had affected the sport's reputation. What happens next? The Premiership table will be updated with an asterisk against Saracens - rather than taking them down to -26 points - pending any review in the next 14 days. The scope of a review is limited and 'can only be on the basis that there has been an error of law, the decision is irrational or that there has been some procedural unfairness.' It is not yet clear whether Saracens have to change their current squad or whether the regulations will change - PRL only recently published this season's salary cap framework and there were no significant changes. Will Sarries be stripped of their Premiership titles won in 17-18 and 18-19? No, PRL say the regulations do not allow for retrospective action. Does it have any impact on the European Cups they won in 17 and 19? No, European Professional Club Rugby (EPCR) have made it clear that this is a Premiership Rugby decision and has no impact on Saracens's previous EPCR titles or their status in this year's competition. Will they actually be relegated to Green King IPA Championship? Looking at previous seasons this seems unlikely, if they do get a 35-point deduction, but relegation is a possibility, particularly with injuries to key players and World Cup fatigue. Advertisement

In addition to Farrell, Itoje and the Vunipola brothers, their all-conquering line-up also boasts Elliot Daly, Liam Williams and Vincent Koch - the latter winning the Rugby World Cup final with South Africa.

In total, nine Saracens players were in action for England during the World Cup in Japan, with Jamie George and George Kruis both influential in the run to the final.

Rival clubs have pushed hard for the matter to be handled robustly, and are understood to have dismissed the idea of an out-of-court settlement being signed with Saracens, as happened in 2015 following a salary cap probe.

Saracens have remained silent on the matter over the last few months, though their initial response to Sportsmail's investigation was a statement from Wray saying that 'investment is not salary'.

Wray, who is estimated to be worth £315m and has been involved with Saracens for more than two decades, continued: 'The Club is open and transparent with the salary cap manager and we proactively disclose co-investments when they occur, even though we are under no obligation to do so. We respect the rules and the salary regulations that are in place.'

Saracens prop Vincent Koch won the Rugby World Cup with South Africa on Saturday

However, some weeks later, PRL announced a review on the grounds that 'Saracens had not at the time of recent media speculation shared with the Premiership Rugby Salary Cap Manager details of all the co-investment arrangements between Connected Parties and Players.'

Sportsmail recently revealed that the club's group head of finance, Bernard van Zyl, had left the club in September, along with fellow director Nick Leslau, a long-term business associate of Wray's who had been at the club for 21 years.

Van Zyl had responsibility for managing the club's approach to and compliance with the salary cap, with his LinkedIn describing him as the 'number one in finance' at the club.

His departure was said to not be linked to the ongoing investigation. It is not clear whether Saracens have appointed a replacement.

In response to Leslau's departure, Saracens issued a statement saying he had left 'to focus his time on new initiatives in the education sector and the ongoing demands of his role as the chair of Prestbury Investments'.