The members present their annual report and financial statements for the year ended 30 June 2024.
The LLP's principal activity is to promote and develop professional club rugby by pursuing the collective interests of its partners in accordance with the LLP Agreement and in line with other policies approved by the Board from time to time.
2024 Overview
Premiership Rugby remains focused on innovating to deliver world-class sporting entertainment. In 2024, we delivered impressive results on the pitch with the Premiership Rugby product continuing to offer a competitive, entertaining and unpredictable experience.
Northampton Saints were crowned champions – a fifth different winner in as many seasons – in a thrilling back-and-forth contest against Bath Rugby at Twickenham Stadium. The league remains the most competitive of its kind in professional club rugby and when compared to other elite sports competitions. The average number of tries remained at seven per match, narrowly short of the record set in the 2022/23 season, whilst try bonus points awarded also hit record levels.
Six Premiership clubs qualified for the Investec Champions Cup knockout stages – the most of any participating league. Northampton Saints and Harlequins both progressed to the semi-finals. Gloucester Rugby qualified for the EPCR Challenge Cup final, losing to South African team, Sharks. Gloucester Rugby also won the Premiership Rugby Cup, defeating Leicester Tigers in a thrilling contest at Kingsholm Stadium.
Player-power continues to be a key focus with a new generation of international stars coming through to add to an impressive selection of established high-profile players. Examples of which include Exeter Chiefs and England star Henry Slade who was voted Gallagher Player of the Season, and rising star Immanuel Feyi-Waboso who was voted the Defender Breakthrough Player of the Season.
There were also very impressive results off the pitch.
The Gallagher Premiership Final was sold-out, the fastest ever sell-out for the event, with an official attendance of 81,688 at Twickenham Stadium. The final also recorded the highest peak audience ever for a Premiership Rugby match on ITV and recorded Premiership Rugby’s highest ever audience share across ITV and TNT Sports (14.3%).
TNT Sports’ audiences increased by 8% from the 2022/23 season overall and its average share increased by 14% (previously BT Sport). The ITV audience share also increased 3% year-on-year. The Rugby Network screened 93 Premiership Rugby fixtures in the US market in partnership with Major League Rugby (MLR), with Fox Sports also screening several key fixtures towards the end of the season to showcase the league to a growing rugby following stateside.
In-stadia attendances also show positive signs of growth. Average attendances were the second highest in fifteen years and average stadium occupancy across the season increased to above 80%. Match tickets issued rose 19% with junior tickets up 13% year-on-year. The festive period (Rounds 9 & 10) attracted record-breaking attendances with the majority of fixtures played in front of sold-out crowds. The Showdown 4 in Round 14 between Saracens and Harlequins recorded our highest ever free-to-air audience. The introduction of a Derby Weekend was a huge success drawing season-high attendances and over 1.1 million viewers on television.
Premiership Rugby also saw significant growth across social platforms. Social followers increased to 1.35 million, a 10% increase on last season, and delivered 19.1 million engagements – the highest engagement level on record. Page views across the Premiership Rugby website and app topped 36 million, impressive performance for a leading sporting property, with over 10% of these coming in the week of the Gallagher Premiership Final 2024. Our LinkedIn page has also seen significant growth over the past year, now boasting over 23,000 followers.
Bristol Bears are adding a new marquee fixture to the 2024/25 calendar with the ‘Big Day Out’ against Bath Rugby at Cardiff’s Principality Stadium adding to the established showcase events in the Premiership calendar: Big Game, Showdown and Big Summer Kick-Off.
Commercial progress
Premiership Rugby renewed its title partnership with Gallagher, extending the relationship by a further three years to a total of ten years with the global insurance brokerage. The multi-million pound deal is one of largest sponsorship deals in the UK and reflects a thriving sponsorship portfolio for Premiership Rugby.
Christopher Ward and eToro began new partnerships with Premiership Rugby for the 2023/24 season, joining existing sponsors Gallagher, Defender, London Pride, Funding Circle, Ticketmaster, Gilbert, Ocean Outdoor and TNT Sports. US-based bourbon brand Buffalo Trace are also joining Premiership Rugby as official spirits partner for the 2024/25 season.
Premiership Rugby and TNT Sports signed a new broadcast deal, extending the long-term partnership. As part of the new deal, all Gallagher Premiership Rugby fixtures will be now broadcast on TNT Sports and discovery+. The 2023/24 season saw increased broadcast innovations including the introduction of the ‘player mic’ which was worn by some of the league superstars including Scotland and British & Irish Lions fly-half Finn Russel in the final.
Governance
During the last financial year, a new club financial monitoring system was established following extensive consultation and development, led by Sir Nigel Boardman. The Clubs unanimously supported the introduction of new Financial Monitoring Regulations and the creation of an independent financial monitoring panel to oversee the Club financial resources that support their ability to compete throughout a Premiership competition season. Added to this reform, the Sporting Commission completed its first year which provided independent governance on sporting and regulatory matters.
Financial performance
From a financial perspective, revenue reached £66.3m (2022 - £62.9m), up 5.5% on the previous season.
Premiership Rugby works in collaboration with a wide variety of partners (including our clubs, their charitable foundations, our investors, and our commercial partners) to create positive social outcomes through improved physical and mental health, educational attainment, employability, and community cohesion. We are committed to ensuring that our league and our business is a diverse, welcoming, and inclusive environment both on and off the field for our staff, players and fans.
Our flagship participation programme, Project Rugby, run in collaboration with Gallagher, supports our ambition to take the game to new audiences by providing new accessible opportunities to participate for ethnically diverse communities, young people from low socio-economic backgrounds and for people with disabilities. In 2024, the programme reached a milestone of 100,000 participants.
Additionally, our programmes support a broader range of outcomes away from the pitch. Through rugby, we were able to bring several areas within the school curriculum to life. Our Award- winning HITZ programme, celebrating its 15th year, addresses social change by supporting education and employability skills for young people Not in Education Employment or Training (NEET). Our Champions programme, now in its final year, focuses on healthy eating, physical literacy, improved numeracy skills, and developing character amongst Primary School pupils.
From an Inclusion and Diversity perspective, we launched initiatives under the strategic plan with the RFU, RPA and Premiership Women - the Elite Game Action – a joined-up approach to tackling some of the issues facing rugby in England. All elite players received facilitated Active Bystander training and our annual game-wide survey allowed us to capture important insight and data related to the professional game. During 2024 Premiership Rugby continued to support the Sporting Equals Leadership programme through the funding of participants on the programme to build and support a talent pipeline for the future. On the pitch, we continued to show our support for ending racism in sport and society more broadly, by the wearing of arm-patches on players shirts and the use of LED screens at matches to promote “Rugby Against Racism”. With the support of a new advisory group focusing on LGBTQ+, we held a Pride weekend of matches involving all clubs in the league.
To ensure our league can set credible and attainable environmental goals, we have engaged with a third party to measure a carbon baseline for the Premiership Clubs and to collect valuable cross -league information in relation to sustainability.
Premiership Rugby (PRL) share office space with 6Nations (6N) and United Rugby Championship (URC), located in London Victoria. Office space is rented from The Office Group who have confirmed to us that they report for the entire building, including PRL’s shared office space. For this reason we have not included this energy consumption in our estimated total for PRL.
Using GHG Protocol prescribed methods, we have estimated our Scope 1 emissions associated with fuel consumption for (owned) transport at 52,815 kWh, or 13,355 kg / co2e. This was calculated using a distance-based approach, with data accessed from 01/07/2023 – 30/06/2024, and converted using 2023 UK Government greenhouse gas conversion factors.
A major factor affecting the league continues to be the financial health of the shareholder clubs. The establishment of the Financial Monitoring Panel, chaired by Sir Nigel Boardman along with the appointment of an internal Financial Monitoring Director, represents significant progress in the management of this risk.
During the season the renewal of the Professional Game Partnership, which sets the terms of the relationship between the RFU, Premiership Rugby and Premiership Clubs, was in progress with final sign off in early September 2024. The agreement provides clarity of a significant portion of each premiership Club’s income until season 31/32.
The company maintains a full Risk Register which is regularly reviewed with the Audit, Risk & Ethics Committee and shared with the PRL Board.
Other information
The company's policy is to consult and discuss with employees, at meetings, matters likely to affect employees' interests, including the strategy, development and performance of the company. Information about matters of concern to employees is given through relevant information channels which seek to achieve a common awareness on the part of all employees of all factors that affect the company's growth and development. All employees share a responsibility for the culture of the company.
The company is committed to promoting equal opportunities in employment and embraces the moral, ethical, legal and business case for equality and diversity.
Fostering the relationships with all of Premiership Rugby’s stakeholders, as evidenced through the examples above (whether in terms of completing the season with only minimal cancellations or the many initiatives undertaken with clubs to support local communities) has been a critical part of mitigating the impact that the Covid pandemic has had and continues to have on professional rugby.
Going Concern Statement
These accounts have been prepared on a going concern basis as the directors confirm that the entity is a going concern when considering the financial position, liquidity and solvency of the company.
The members' drawing policy allows each member to draw a proportion of their profit share, subject to the cash requirements of the business.
A member's capital requirement is linked to their share of profit and the financing requirement of the limited liability partnership. There is no opportunity for appreciation of the capital subscribed. Just as incoming members introduce their capital at "par", so the retiring members are repaid their capital at "par".
The designated members who held office during the year and up to the date of signature of the financial statements were as follows:
In accordance with the limited liability partnership's membership agreement, a notice proposing that Saffery LLP be reappointed as auditor of the limited liability partnership will be put at a general meeting.
The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).
Under company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the limited liability partnership will continue in business.
The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Premier Rugby Holdings LLP (the 'limited liability partnership') for the year ended 30 June 2024 which comprise group statement of comprehensive income. the group and parent company statement of financial position, the group and parents reconciliation of members' interest, the group statement of cash flows and the group and parent company notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the limited liability partnership in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the members' 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 limited liability partnership’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 members with respect to going concern are described in the relevant sections of this report.
Other information
The members are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information we are required to report that fact.
We have nothing to report in this regard.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 as applied to limited liability partnerships requires us to report to you if, in our opinion:
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
we have not received all the information and explanations we require for our audit.
As explained more fully in the members' responsibilities statement, the members 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 members 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 members are responsible for assessing the limited liability partnership'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 members either intend to liquidate the limited liability partnership 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the limited liability partnership’s financial statements to material misstatement and how fraud might occur, including through discussions with the members, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the limited liability partnership by discussions with members and by updating our understanding of the sector in which the limited liability partnership operates.
Laws and regulations of direct significance in the context of the limited liability partnership include The Companies Act 2006 as applied to limited liability partnerships and UK Tax legislation.
Audit response to risks identified:
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the limited liability partnership's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the limited liability partnership's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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.
Use of our report
This report is made solely to the limited liability partnership's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied to limited liability partnerships. Our audit work has been undertaken so that we might state to the limited liability partnership'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 limited liability partnership and the limited liability partnership's members as a body, for our audit work, for this report, or for the opinions we have formed.
The Income Statement has been prepared on the basis that all operations are continuing operations.
There was no other comprehensive income in the period.
Premier Rugby Holdings LLP is a limited liability partnership incorporated in England and Wales. The registered office is Thomas House, 84 Eccleston Square, London, SW1V 1PX.
The limited liability partnership's principal activities are disclosed in the Members' Report.
These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest £1.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
In the group LLP financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. Investments in subsidiaries are accounted for at cost less impairment.
The group financial statements incorporate those of Premier Rugby Holdings LLP and those of its subsidiaries, Premier Rugby Holdco Limited and Premier Rugby Limited (ie the entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). The limited liability partnership and its subsidiary undertakings comprise a large group, under section 405 of the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) a subsidiary may be excluded from the consolidation if its inclusion is not considered material for the purpose of giving a true and fair view.
The members consider it appropriate to exclude one dormant subsidiary on this basis.
At the time of approving the financial statements, the members have a reasonable expectation that the limited liability partnership has adequate resources to continue in operational existence for the foreseeable future. Thus the members continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover represents sponsorship and broadcast monies, recharged services and licensing income received net of value added tax. Turnover on long term contracts is assessed with reference to contracted revenues for the year.
Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).
Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.
All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.
Where there exists an asset and liability component in respect of an individual member’s participation rights, they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the recognised amounts, and it intends either to settle on a net basis or to settle and realise these amounts simultaneously, in which case they are presented net.
Once an unavoidable obligation has been created in favour of members through allocation of profits or other means, any undrawn profits remaining at the reporting date are shown as ‘Loans and other debts due to members’ to the extent they exceed debts due from a specific member.
Negative goodwill arising on the acquisition of subsidiary undertakings represents the excess of the fair value of the identifiable assets and liabilities acquired over the consideration paid. The excess is initially recognised in the statement of financial position. Subsequently the excess is amortised on a systematic basis over the period the Group is expected to benefit, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets comprise capitalised legal fees in respect of revenue generating contracts, and are written off in equal annual instalments over their estimated useful economic life.
In addition, the group recognised an intangible asset relating to the fair value of the subsidiary acquired in the period. The asset is written off in equal annual instalments over the asset's estimated useful economic life which is 10 years.
Annual impairment reviews are undertaken and provision is made for any diminution in value.
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
At each reporting period end date, the limited liability partnership reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the limited liability partnership estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The limited liability partnership has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors, 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, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership 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 limited liability partnership after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 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 limited liability partnership’s obligations expire or are discharged or cancelled.
The company enters into foreign exchange forward contracts in order to manage exposure to foreign exchange risk.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
The tax expense represents the sum of current tax and deferred tax incurred by subsidiary companies. The LLP is not, itself, subject to corporation tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Contributions payable are charged to the profit and loss account in the year they are payable.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
In the application of the limited liability partnership’s accounting policies, the members 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.
There are not considered to be any key sources of estimation uncertainty or critical judgements.
An analysis of the limited liability partnership's turnover is as follows:
The partnership has no employees. The average number of persons (excluding members) employed by the group during the year was:
Their aggregate remuneration comprised:
The aggregate compensation of key management personnel during the year was £705,775 (2023: £714,988).
The partnership has no intangible assets.
Negative goodwill and commercial brand have been recognised on the acquisition of Premier Rugby Holdco Limited and are amortised over their useful economic life which is 10 years.
The Group owns 100% of the issued share capital of Premiership Rugby Limited. This company was dormant throughout the year.
Details of the limited liability partnership's subsidiaries at 30 June 2024 are as follows:
All subsidiaries have a registered address of Thomas House, 84 Eccleston Square, London, SW1V 1PX.
The Group has an overdraft facility which is secured by way of debenture on the bank's standard form, dated 27 July 2005. It is repayable on demand.
The bank loan is secured by a fixed and floating charge over all assets of the company and is for a term of 5 years, ending in December 2024. Following the year end, the £49m loan facility was re-financed for a further two-year term. Consequently, the repayment date has been extended to December 2026.
Interest on the initial £29,000,000 is charged at 2.25% plus SONIA and interest on the £20,000,000 extension to the loan is charged at 4% plus SONIA.
The long-term loan notes are unsecured loan notes. Interest accrues at a rate of 12% and the loan notes are due for repayment in March 2031.
The limited liability partnership operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the limited liability partnership in an independently administered fund.
At the reporting end date the limited liability partnership had no outstanding commitments for future minimum lease payments under non-cancellable operating leases. The group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The designated members of the partnership represent the Premiership rugby clubs and Cobalto UK Bidco Limited who own, and receive distributions from, Premier Rugby Limited, a wholly owned subsidiary. The interests of the directors in the Premiership clubs and Cobalto UK Bidco Limited can be found in the financial statements of the individual entities concerned.
Cobalto UK Bidco Limited, a related party, holds loan notes in Premier Rugby Holdco. At the balance sheet date the amount owed to Cobalto UK Bidco Limited was £101,798,112 (2023: £104,065,558). The interest charged to the profit and loss was £11,851,115 (2023: £12,070,408) and the total repayment in the year was £14,118,860 (2023: £16,911,341).
At the balance sheet date, an amount of £10,803 (2023: £10,609) was owed by PRL Investor Limited, an associated company.
Following the year end, the £49m loan facility was re-financed for a further two-year term. Consequently, the repayment date has been extended to December 2026
In FY23 a subsidiary of the group issued a new class of shares to the management of the company. These share do not hold voting or distribution rights and are held as a non controlling interest in the group.