The_Rugby_Football_League - Accounts
The_Rugby_Football_League - Accounts
The directors present the strategic report for the year ended 31 December 2022.
Principal Activities
The principal activity of The Rugby Football League Limited ("the RFL") throughout the year was the promotion of the game of Rugby League. The RFL organises and promotes competitions to maximise returns to members. The RFL is also the governing body for the sport of Rugby League in Great Britain and Ireland.
Business Model
The primary remit of the Board is to lead the RFL and the sport by focusing on four key areas of the business: strategic issues facing the RFL and Rugby League generally; monitoring and review of executive performance; approval of changes to the regulatory framework; and finally representing the RFL externally when appropriate and required.
Day to day management of the RFL is delegated to the executive management team under the leadership of the Chief Executive Officer. The Board of Directors receive presentations and reports from members of the executive management team at each Board meeting and may also request updates or attendance at Board meetings from an individual departmental manager if there are significant issues to discuss in an area.
Management of the business is organised via the Chief Executive Officer through key executive areas which are On-Field, Finance, People, Talent, Development, Legal & Operations, and Data & Insight.
The RFL Strategic Plan provides a road map for Rugby League up to the end of 2030. This plan covers distinct areas of activity and its guiding principles are;
Player centric
Outstanding elite competitions
Fan focused
Well governed and inclusive
The grassroots underpins all the above including Rugby League’s ability to deliver positive social impact in our communities. Over the period of the current plan, performance against it is and will be closely monitored by the Board.
In 2022, the RFL entered into a Joint Venture with Super League (Europe) Ltd and formed RL Commercial Limited.
RL Commercial has been assigned the rights of all the commercial properties of the professional Sport and is charged with selling those properties as well as staging the Sport’s central events. Ownership of those rights still remains with the RFL and SLE respectively. This Joint Venture began trading in January 2023.
The Super League clubs are also members of Super League (Europe) Ltd which acts as a vehicle for the distribution of residual value payments from RL Commercial Ltd. The RFL is a shareholder in Super League (Europe) Ltd with key rights over specific issues.
The Championship and League 1 clubs meet at least three times a year to discuss matters of common interest.
The RFL also has a Community Board which comprises representatives from various sections of the community game including youth and adult participation, schools, universities, and armed services. This Board meet four times a year to discuss matters of importance in the community game.
Business review and results
The accounts for the RFL show a loss before tax for the financial year of £541k for the year ended 31 December 2022 (2021: Profit £538k). The RFL has maintained an aggregate positive cash balance throughout the year.
At 31 December 2022, this aggregate balance was £5,049k (2021: £11,231k).
Principal Risks and Uncertainties
The Board and Executive team had budgeted to make a profit in 2022 (£394k) in order to continue the financial turnaround from the previous three years and to build reserves for future to bolster the entity's ability to absorb potential Budget shocks in the coming years. Despite strict cost control and management of spend by the Executive, the RFL has been faced with another challenging year. This can be broken down in to the following key areas:
Insurance – the RFL provides game wide insurance cover with the most significant cost arising in the Sport’s Employers’ and Public Liability policy. This particular policy provides cover for concussion related injuries and there was concern from the underwriter of the policy around some of the claim activity in other contact sports. The underwriter made the difficult decision to withdraw cover at renewal in July 2022. After an intensive piece of work by the RFL’s insurance broker, Bartlett’s, an alternative insurer was found. This has resulted in a significant premium increase which was not budgeted.
Events – In 2022 the RFL staged a number of central events. The Challenge Cup Final being the most notable. Ticketing revenues were below expectations in 2022 which has had an impact on the Budget. This was mitigated to some extent by strict cost control and the varying nature of some of the key costs of staging this event. A significant cost was also absorbed to stage the Mid-Season International Event match at Warrington which gave the England Men’s and Women's teams a chance to perform ahead of the RLWC2021 tournament held in Autumn.
Restructuring – As part of the planned re-alignment of the Sport, the RFL has been through a re-organisation of its management structure and crucially the recruitment of a new Chief Executive. Tony Sutton was appointed Interim Chief Executive on 1st January 2023, and then following an extensive external market recruitment process he was appointed permanent Chief Executive on 13th March 2023. There were some one-off restructuring costs accounted for in 2022. The ultimate outcome of this restructuring is a smaller Executive Team in 2023, at a lower cost than in prior years.
Detailed Analysis of Trading
Year on year turnover has increased by 4% from £20,014k to £20,796k with both sponsorship and match income seeing some recovery. Match income has increased from £1,071k to £1,639k, while sponsorship income has increased from £1,668k to £2,223k.
Government funding has increased from £3,760k in 2021 to £6,584k in 2022 - an increase of 75% mainly due to additional funding from Sport England including Community Club Fund.
New BBC and Sky broadcast contracts also commenced in 2022. Overall broadcast income decreased from
£9,434k in 2021 to £6,183k in 2022. This represents a decrease of 34% derived from those new contracts.
Within the RFL accounts, the cost of sales heading is broken down into two sections. The first being the external, third party costs of making the sale and the second being the cost of sales that are internal to the RFL's stakeholders such as payments directly made to clubs. External cost of sales increased from £5,095k in 2021 to £8,862k in 2022, primarily due to an increase in match costs.
Grant funded activities expenditure has increased from £3,125k in 2021 to £4,842k in 2022 reflecting the level of programme activity delivered in 2022, and its associated income.
Payments to and on behalf of clubs is made up of the cost of sales element of £274k (2021: £1,204k) and a further amount of £5,004k (2021: £7,153k) shown below Gross Profit on the Profit and Loss Account, which in 2022 brought the total payable to and on behalf of clubs to £5,278k (2021: £8,356k). This relates in the main to the reduction in distributions to Championship and League 1 Clubs as a result of the reduced Broadcast revenues in to the Sport in 2022 when compared to 2021.
In 2022, Operating Costs have increased to £7,658k from £6,071k in 2021. A significant driver of this is staff costs which have significantly increased from £5,124k in 2021 to £6,015k in 2022 due to the impact of Covid-19 in 2021. A relaxation of Covid-19 restrictions has also allowed for increased activity and hence greater costs in other areas within operating costs.
Director remuneration has increased from £422k in 2021 to £661k in 2022. It should be noted that this total includes a provision of £245k for the compensation for loss of office for the former Chief Executive Officer and Chief Regulatory Officer.
Costs of the Non-Executive Board have decreased slightly due to reductions and timing of Non-Executive Directors movements in 2022. These costs have since reduced further in 2023.
Our People
Our People are at the heart of our sport. The RFL recognises that without their commitment, professionalism, and expertise in delivering customer service excellence it would be unable to achieve its goals.
We are committed to providing ongoing investment to their learning and development to achieve the highest standards. We fully support all opportunities for employment, career progression and development. Irrespective of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race (including colour, nationality, and ethnic or national origin), religion or belief, sex (gender) and sexual orientation through our communities, Inclusion and Diversity Tackle It action plan.
The RFL is committed to ensuring that Rugby League is an inclusive sport and we have a proud history that supports this. To ensure we continue to meet the wider objectives of the sport by increasing participation and engagement from the communities. Inclusion and Diversity sits at the forefront of this enabling us to promote our sport and encourage new interest whilst retaining the commitment and passion we currently have. In 2020, the RFL launched Tackle It, a sport-wide action plan to make Rugby League a truly inclusive sport by tackling all forms of discrimination and breaking down any barriers to involvement. The plan sets out four strategic goals and, crucially, the specific and measurable actions that will be taken to achieve them.
An Inclusion Board - chaired by Dr Rimla Akhtar (RFL Non-Executive Director) - has been established to support the RFL in its delivery of the Tackle It! action plan. The group, made of up both internal and external members, seeks to provide strategic advice and support to the organisation.
Our Communities
As a leading National Sports Governing Body, we are committed to transforming our local communities by delivering an approach to positive corporate social responsibility encompassing cash donations, support for volunteering, environmentally friendly practices, and investment in our people. In line with this commitment, we have continued to support several sports related charities including the RFL Benevolent Fund, the RFL Facilities Trust, and Rugby League Cares. We support these organisations in cash and in kind.
Corporate Governance
The RFL is committed to high standards of corporate governance and is continually looking at ways to improve this function. This is evidenced in the Directors Report through the operation of Board Committees and through the RFL's commitment to compliance with UK Sport and Sport England's Code for Sports Governance. The RFL has further enhanced this commitment through continuing to manage itself through its Non-Executive Chair and Non- Executive Director Board structure, the carrying out of an external evaluation of the Board (and the publication of that reviews' findings) along with the continued rollout of its Tackle It Plan and its engagement in an internal audit programme. The internal audit programme is carried out by an independent third party and reports directly to the Audit and Risk Committee. It is a wide-ranging programme, and it provides transparency for members alongside the statutory external audit programme.
Review of 2022
A year that began with a fiery Betfred Super League opener between St Helens and Catalans Dragons in early February ended nine months later in Manchester with the climax of the Rugby League World Cup, as England’s dramatic Friday night victory over France in the Wheelchair competition was followed by more comfortable wins for Australia’s Jillaroos and Kangaroos, over New Zealand and Samoa respectively.
That provides some idea of the wide variety of Rugby League spread across 2022, taking in major stadiums such as Elland Road for a record-breaking Betfred Women’s Challenge Cup Final, and the superb Tottenham Hotspur Stadium for Wigan’s victory over Huddersfield Giants – while the three major domestic women’s honours were spread around three different clubs.
In addition to Matt Peet’s Warriors, the big winners in the Men’s game were St Helens, who secured a record- breaking fourth consecutive Super League title by beating Leeds Rhinos 24-12 in the Grand Final.
It was the fifth time the Saints had met the Rhinos in the title decider – and the first time Saints had won, providing extra satisfaction for all at the club, including Kristian Woolf, the coach who had already confirmed a return to Australia with the Dolphins for their first season in the NRL.
Jonny Lomax won the Harry Sunderland Trophy for a typically influential performance, underlining what a loss he would be when he withdrew from England’s World Cup squad because of injury.
The win also took Saints two ahead of Leeds as the most successful team of the Super League era with a 10th title.
Leeds had seemed unlikely Grand Finalists for much of the season but the appointment of Rohan Smith as Head Coach, following in the footsteps of his uncle Tony who had won two Super League titles with the Rhinos, led to a stirring run of form in late summer and into autumn, as after squeezing into the top six at the expense of Castleford Tigers, they claimed notable away wins at Catalans Dragons and Wigan to earn their Old Trafford place.
Saints had finished top of the table for the third time in five years – although the first since 2019 – but were given a real fright by Salford Red Devils in a controversial semi-final before securing their Old Trafford place with a 19-12 win.
Salford’s performance was all the more impressive considering the absence of Brodie Croft, the Australian half- back whose consistent brilliance earned him the Steve Prescott MBE Man of Steel award. Croft was ruled out under concussion protocols after being injured in Salford’s play-off win at Huddersfield the previous weekend.
At the other end of the table, Toulouse Olympique had their moments in their first Super League season, but were ultimately cut adrift, with only five wins.
Arguably the greatest surprise of the season was the fact that the team immediately above Toulouse were Warrington Wolves, as the optimism following the appointment of Daryl Powell as coach quickly gave way to realism that his rebuilding job would not yield instant results.
Leigh Centurions stormed to the Betfred Championship title to ensure they would take Toulouse’s place in Super League 2023 – although shortly after their Grand Final win over the Batley Bulldogs team who had again achieved far more than generally expected under Craig Lingard’s canny coaching, the Centurions were rebranded as the Leopards.
The Cougars of Keighley were equally dominant in earning promotion to the Championship as Betfred League One champions, while Swinton Lions beat Doncaster in the Play-Off Final to secure the second promotion place – with Dewsbury Rams and Workington Town slipping in the reverse direction.
Of the two new names in the League One competition, Midlands Hurricanes finished eighth with six wins out of 20 in their first season after rebranding, while a single win at West Wales Raiders was enough for Cornwall RLFC to avoid the wooden spoon – with West Wales confirming their withdrawal from the competition in December.
Highlights of the early rounds of the Betfred Challenge Cup included the Royal Navy reaching the Fourth Round for the first time in their history, and including a tight Second Round win against the British Army in Aldershot.
Leigh and Featherstone Rovers both underlined the quality in the Championship with highly creditable defeats at Hull KR and Catalans Dragons respectively in the Sixth Round.
They were also to meet in the final of the AB Sundecks 1895 Cup, the knockout competition for non-Super League teams. The game was played at Tottenham before the Wigan-Huddersfield Challenge Cup Final and Leigh became the third winners, following Sheffield Eagles in 2019 and Featherstone in 2021, with the Papua New Guinea hooker Edwin Ipape winning the Ray French Award as Player of the Match.
The 121st Challenge Cup Final broke new ground at Tottenham, and the teams produced a compelling spectacle in front of a 51,628 attendance. Huddersfield were on course for a seventh Cup triumph and a first since 1953 when they led 14-12 courtesy of a 58th minute Jermaine McGillvary try, but Wigan broke their hearts when Harry Smith laid on a try for Liam Marshall with less than four minutes remaining.
Wigan therefore extended their record number of Cup wins to 20, ending an unusually long wait of nine years since their last triumph, while Huddersfield’s Australian forward Chris McQueen had the consolation of winning the Lance Todd Trophy.
St Helens had won the Betfred Women’s Challenge Cup Final at Elland Road three weeks earlier, with the crowd of 5,888 in attendance for the first match of a triple header also including the men’s semi-finals setting a new record for a Women’s match in the UK.
Zoe Hornby scored a storming try to give Leeds the early lead, and was named Player of the Match, but Saints surged back to win 18-8, Jodie Cunningham scoring a fine individual try before lifting the trophy for the second consecutive year.
However Saints were unable to repeat the dominance that earned them a double in 2022, with York confirming their arrival as a major force by winning the League Leaders’ Shield, and Leeds gaining revenge for their Cup Final defeat by beating St Helens in the BWSL Semi Final – then beating York 12-6 in St Helens to claim their second BWSL title in three years, with Caitlin Beevers scoring both tries.
The Rhinos also retained the Betfred Wheelchair Challenge Cup, beating Catalans Dragons 48-34 in a thrilling Final in Hull to deny the French club a fairytale finish to their first appearance in the competition.
But Leeds were denied a second consecutive league and cup double by Halifax Panthers, with Rob Hawkins scoring five tries in a 52-48 victory in Manchester. Hawkins and his England team-mates were on the cusp of the most memorable few weeks of their sporting lives.
International & Rugby League World Cup 2021
All three England teams prepared for the World Cup with Mid-Season Internationals.
Shaun Wane’s Men claimed a satisfying 18-4 win against a Combined Nations All Stars team coached by Ellery Hanley, reversing the result of the fixture when it was played in 2021 at the same Warrington venue.
England Women played two Tests in the space of a week, beating Wales 32-6 at Pandy Park and France 36-10 at the Halliwell Jones Stadium in the first part of a double header.
England Wheelchair beat France 62-48 in Manchester, an entertaining match which nevertheless had the feel of a slightly phoney war as the French were missing a number of key players who would surely return for the World Cup.
The Men were the only team to play an official warm-up, and it set the tone for a sparkling month as nine different players scored tries in a 50-0 demolition of Fiji at the Salford Stadium.
Nobody expected England to beat that victory margin in the World Cup opener against a high-pedigree Samoa team at Newcastle’s St James’ Park, so there was a combination of delight and disbelief after Elliott Whitehead and the outstanding Dom Young each scored two tries in a 60-6 demolition, in front of a 43,000 crowd.
That set the pattern for further comfortable wins on consecutive Saturday afternoons against France in Bolton, the World Cup newcomers Greece in Sheffield, and Papua New Guinea in the Quarter Final in Wigan – an occasion which also included England Women’s second group match against Canada, and was attended by the RFL’s Patron, HRH the Princess of Wales.
England Women beat the plucky Canadians 54-4 after winning their opener against Brazil 72-4 in front of a crowd of 8,621 on a Tuesday afternoon at Headingley, beating the record for a Women’s game in the UK set earlier in the year at Elland Road.
They completed their group campaign with a 42-4 win against Papua New Guinea back at Headingley, the St Helens wing Leah Burke scoring a spectacular hat-trick of tries each created by precise kicks from the Leeds half- back Courtney Winfield-Hill
With England’s Wheelchair team also surging to their Semi Final with group wins against Australia, Spain and Ireland at the Copper Box in London’s Olympic Park, the three England teams had a perfect 10 from 10 record going into the penultimate weekend of the tournament.
But the Men then suffered a cruel and agonising Semi Final defeat by Samoa at the Emirates, and although the Wheelchair team secured their Final place the following day by beating Wales in Sheffield, the Women went down 20-6 to New Zealand in their Semi Final in front of another landmark crowd of more than 7,000 at York’s LNER Community Stadium.
That left Tom Coyd’s Wheelchair team, who had already captured the imagination of a huge new audience through the BBC’s coverage of their first four fixtures, flying the home flag on Finals Weekend in Manchester.
What followed will be remembered by all who were in attendance that Friday night at a packed Manchester Central, as Tom Halliwell’s late try secured a 28-24 victory – and England regained the World Cup for the first time since 2008.
Community Game
We are continuing to see accelerated growth amongst the numbers of women and girls playing rugby league including the expansion of girls Futures Hubs and piloting of a new girls 7-11's programme. However, the sport has not bounced back as strongly as the mid-year participant reporting suggested it would in some settings particularly male open age.
Culture change and improvements in touchline environments remain a priority. We are continuing to drive change in a variety of different ways including adapting our playing offers and introduction of new playing offers. Progress in establishing the Player Development League ethos and principles within existing junior leagues continues via the Lions Development Programme. On field success was secured through the England Community Lions with the U19’s successful in the European Championship and PDRL winning the inaugural World Cup.
There was a cautious return to activity post pandemic across education settings whilst our rugby league activity offers covering Learning Disability RL, Physical Disability RL and Wheelchair RL continue to see significant growth.
Working with partners continues to be a significant part of our strategy. We have strong ongoing partnerships with Community Integrated Care, Street Games and Access Sport. On the field our positive relationship with Try Tag Rugby continues to encourage more people to try social variants of the sport.
We continue to drive our social impact programmes through ‘Our League Life’ our social impact brand with five community well-being hubs being piloted as part of a project to recognise the role rugby league plays at the heart of the communities. We have also secured and administered five significant grant funding schemes and delivered £116,000 new investment into the community game.
Working in partnership with KKP work is underway to deliver a new RFL Facilities Strategy which will help secure and underpin additional facilities funding post RLWC2021. A particular focus here will be the work we are doing with the Football Foundation multisport projects.
Sustainability
In 2022, the RFL embarked on a Sport England funded audit of the professional game on Environmental Sustainability. The British Association of Sustainability in Sport (BASIS), an organisation dedicated to sustainability for the UK sports sector, successfully tendered for the work and began an audit of the professional game and a selection of asset owning community clubs. This audit looked at 12 areas including energy usage, community and communications and waste management.
Now nearing completion, the report will be shared across the game and various stakeholders to inform of our next steps and commitments to become a more sustainable sport. In addition to the report BASIS will be supporting the RFL and professional clubs to produce action plans on becoming more sustainable with a view to improving both Environmental Sustainability which could lead to supporting in becoming financially sustainable.
The directors present their annual report and financial statements for the year ended 31 December 2022.
The RFL has a Board of Directors that is totally independent of any club or member involvement. The Board is currently comprised of one Executive Director, and four Non-Executive Directors – including the Non-Executive Chair.
All non-executive directors are subject to election by the RFL Council at the first opportunity after their appointment, and to re-election every nine years. Non-Executive directors retire by rotation and may offer themselves for immediate re-election.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The Board undertakes a formal and rigorous annual evaluation of its own performance and that of its committees and individual directors. This includes a review of whether each director continues to contribute effectively and demonstrate a commitment to the role (including commitment of time for Board and committee meetings and any other duties). The evaluation process is used constructively as a mechanism to improve Board effectiveness, maximise strengths and address areas of improvement.
Board Committees
The Board has established eight specific committees, each with defined terms of reference. Minutes of the meetings are circulated to and reviewed by the Board.
The Audit & Risk Committee
The purpose of the Audit and Risk Committee is to: (a) consider the appointment of the external auditors and their independence; (b) consider the appointment of the internal auditors and review the RFL’s internal audit programme; (c) review the Group’s financial statements; and (d) review the effectiveness of the internal control systems of the RFL including the process for managing risk.
The Audit and Risk Committee consists of at least 4 members, 2 of whom have to be Non-Executive Director and one of whom has to be the RFL Executive who is the Chief Risk Officer for the RFL (currently the Director of Finance, Facilities and Central Services - Robert Graham).
The Audit and Risk Committee is chaired by Non-Executive Director Rimla Akhtar.
The Audit and Risk Committee met on four occasions in 2022.
The Remuneration Committee
The Board of Directors consider it important to benchmark Board & senior staff remuneration against other businesses of similar size and against other sports governing bodies. To this end, the Remuneration Committee meets as appropriate, chaired by Sandy Lindsay, and currently comprises Dr Rimla Akhtar, Dr Cherrie Daley and Victoria Sinacola. The Committee determines the terms and conditions of employment for executive and non- executive directors and agrees the level of remuneration for senior managers whose earnings are within the committee's prescribed criteria. The objective of the committee shall be to ensure that members of the executive management of the RFL are rewarded, in a fair and responsible manner, for their individual contributions to the success of the RFL.
The Nominations Committee
The purpose of the Nominations Committee is to: (a) ensure that there is a formal and transparent procedure for appointing new directors, re-appointing directors to the Board of Directors and appointing senior executives (being the Chief Executive Officer and any executive it is envisaged will have a basic salary of £100,000 or more); and (b) keep under review the composition of the Board and Board sub-committees and make recommendations to the Board in relation to the same.
This Committee is chaired by Simon Johnson and includes all Non-Executive Directors. The Committee is responsible for nominating candidates to fill Board vacancies for the approval of the Board as and when they arise.
Before considering any appointment, the balance of skills, knowledge and experience on the Board is evaluated, the diversity and make-up of the Board is considered and, in the light of this evaluation, a description of the role and capabilities required for an appointment is prepared. In addition, full consideration is given to succession planning during its work, considering the challenges and opportunities facing the company and the skills and expertise that are therefore needed on the Board in the future as well as regularly reviewing the structure, size and composition (including skills, knowledge and experience) of the Board and making recommendations to the Board with regard to any changes. During 2022 there were no appointments to roles that fall within the remit of the Nominations Committee; however, it still met once.
Laws Committee
The purpose of the Laws Committee is to review the current laws of the game whilst also fully considering the potential impact of the introduction of new laws based on three principles of keeping the game safe, fair and entertaining. Drawing from across the game, the Committee comprises of a range of members who are considered representative of all stakeholders and is chaired by the RFL Chief On Field Officer. The Committee consider it vital to understand the views of all relevant stakeholders (including coaches, players, medical staff, the players' union and match officials) and this is reflected in its composition. The Committee met three times in 2022.
Community Board
By virtue of Article 79 of the Articles of Association of RFL (Governing Body) Limited, the Board has established a Community Board. This Board is accountable to the RFL Board for the management and development of all aspects of the community, grass roots and amateur game of Rugby League. The role of the Community Board is to assist in the organisation and management structure of the RFL, and to bring together all areas of the British Rugby League community, grass roots and amateur game under the governance of the RFL.
The Community Board is made up of representatives of the various sectors of the community game being BARLA; Combined Services Rugby League; Education rugby league settings; Higher Education rugby league settings; Tier Four Leagues; Tier Five and Tier Six Adult Leagues; Tier Five Youth and Junior Leagues and Foundations. The RFL nominates 1 Director to act as Chair, a person to represent Active Participants and 2 other Independent representatives. The current Chair is Sandy Lindsay (who assumed the Chair in September 2020).
Whole Game Board (formerly Professional Game Board)
The purpose of the Whole Game Board is to consider and make non-binding recommendations to the Board in relation to the regulation and operation of the Game on matters that directly or indirectly have impact on rugby league clubs who play in: (i) the Super League; and (ii) the Championship and League 1 and which may have a whole game impact (including potentially on the Community Game). The overriding aim being to drive the Game's objectives.
Its membership is made up of representatives of the RFL, the Super League Clubs, the Championship and League 1 Clubs and the Community Game.
The Committee met twice in 2022. With the realignment of the RFL and SLE, this sub-committee will not formally meet again and instead will become a task and finish group meeting only as and when required.
Inclusion and Diversity Board
The RFL Inclusion Board was made a formal sub-committee of the RFL Board in 2020. The purpose of the Inclusion Board is to check and balance the implementation of Tackle It, review progress, identify and assist with areas for development, and contribute to promoting an inclusive and diverse culture in Rugby League.
Chaired by Rimla Akhtar, the board meets a minimum of four times a year in addition to attending events – including the Challenge Cup Final and Rugby League World Cup in 2022 – and providing support within individual areas of expertise.
Membership is being reviewed in 2023 with a view to address gaps in representation through the recruitment of new board members from September 2023. This is aligned with the review of the Tackle It action plan.
Clinical Advisory Group
In February 2021, the Clinical Advisory Group was formally made a Board sub-committee. Its purpose is to make recommendations to the Board; and provide guidance to the Game, on all medical issues impacting the Game.
Core membership is drawn from all clinical roles in the Game and levels within the Game (Community and Professional Game). The sports Chief Medical Officer and Covid Medical Officer are members of the Committee.
The committee met 5 times in 2022.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Clearly defined management structure and delegation of authority to committees of the Board and the management team. High recruitment standards and formal career development and training to ensure the integrity and competence of staff. Regular information provided to management and staff, covering financial performance and key performance indicators. A detailed budgeting process where departmental managers participate in the budget formation before approval by the Board. A streamlined system with an automated workflow for the approval of capital expenditure, investments and all trading purchases. Monthly monitoring and re-forecasting of results against budget, with management action taken and recorded against major variances. On-going procedures to maintain the risk register, evaluate the risks faced by the business and monitor the systems to control and reduce the risks.
Other information
An indication of likely future developments in the business and of significant events which have occurred since the end of the financial year have been included in the Strategic Report on page 1.
The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
select suitable accounting policies and then apply them consistently; make judgements and accounting estimates that are reasonable and prudent; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit.
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Performing audit work over the timing and recognition of revenue and in particular whether it has been recorded in the correct accounting period.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
The Rugby Football League Limited is a private company limited by shares incorporated in England and Wales. The registered office is Gate 13, Rowsley Street, Etihad Campus, Manchester, M11 3FF.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: The company has taken advantage of the disclosure exemptions of Section 33.1A of FRS 102 which permit it to not present details of its transactions with members of the group.
The financial statements of the company are consolidated in the financial statements of RFL (Governing Body) Limited. These consolidated financial statements of RFL (Governing Body) Limited are available to the public and may be obtained from Gate 13, Rowsely Street, Etihad Campus, Manchester, M11 3FF.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
In the opinion of the directors these financial statements are not dependent upon any accounting estimates or judgements.
All turnover is generated in the UK.
The average monthly number of persons (including directors) employed by the company during the year was:
Their aggregate remuneration comprised:
The actual credit for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
The long-term loans are secured by fixed and floating charges over the company's assets.
Other borrowings is an intercompany loan which consists of funding provided by DCMS (via RFL Investments 2020 Limited) to support Rugby League through the COVID-19 pandemic. In the prior year RFL borrowed £3.5m with an interest rate of 0.2%. The loan was refinanced during the year, increasing the loan to £4.5m with 2% interest. The loan is repayable over 19 years with a 4 year repayment holiday from its drawdown in March 2022. The final repayment is to be made by April 2041.
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year £36,428 was recognised as an expense in the profit and loss account in respect of operating leases (2021: £13,799).
RFL (Governing Body) Limited (RFLGB), has significant influence over Rugby League Cares (RLC) and The Rugby Football League Limited (RFL).
At 31 December 2022 within other debtors £117,000 (2021 - £217,044) is owed by RLC to RFL.
At 31 December 2022 within trade creditors £147,023 (2021 - £Nil) is owed by RFL to RLC.
RFL (Governing Body) Limited (RFLGB), has joint control over RL Commerical Limited (RLComm) and The Rugby Football League Limited (RFL).
At 31 December 2022 within trade debtors £89,124 (2021 - £Nil) is owed by RLComm to RFL.
At 31 December 2022 within trade creditors £415,778 (2021 - £Nil) is owed by RFL to RLComm.
At 31 December 2022 within other creditors £56,847 (2021 - £Nil) is owed by RFL to RLComm.
The company is a subsidiary undertaking of RFL (Governing Body) Limited which is controlled by its members.