Worcester Warriors, Wasps and London Irish all went bust during the 2022-23 campaign, during which nine of the remaining 10 Premiership teams saw debts of £1m or more.
Gloucester- whose debt totalled just over £541,000 – was the closest to breaking even.
The salary cap is voted on by all Premiership clubs however St Quinton says it should be no higher than the money centrally distributed to the clubs each season.
A new Professional Game Partnership was announced in September, in agreement with the Rugby Football Union (RFU) and Premiership Rugby, that sees all clubs receive £33m per season over the next eight years.
“The cap should not be no higher than the levels of central distributions that we get,” St Quinton said.
“If our central distributions went up because our media rights went up and our sponsorships went up then the salary cap could go up.
“We are all living beyond our means which is why the annual losses of all 10 clubs is over £30m which is madness. The whole club game, the model is flawed.”
