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Registered number:
For the Year Ended
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RL Commercial Limited
Company Information
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RL Commercial Limited
Contents
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RL Commercial Limited
Strategic Report
For the Year Ended 31 December 2024
The directors present the strategic report for the year ended 31 December 2024.
The primary remit of the Board is to maximise the commercial value of Rugby League rights and properties in order to maximise the commercial returns that Rugby League Clubs receive in line with the underlying joint venture agreement between the Rugby Football League and Super League (Europe) Limited.
The key purposes of the Board are:
∙Setting the strategy of RL Commercial;
∙Approving the long-term financial plan and annual budget of RL Commercial;
∙Monitoring delivery of the strategic plan and objectives;
∙Periodic review of the financial plan and performance against annual budget;
∙Overseeing Executive performance;
∙Periodic review of major risks;
∙Discussion of, and engagement with, stakeholder proposals and concerns;
∙Setting the commercial strategy for the sport;
∙Overseeing RL Commercial’s compliance with the Framework Agreement between Super League (Europe) Limited and RL Commercial Limited.
∙Ensuring the sport maximises commercial, broadcast and event income; and
∙Establishing such sub-committees as it deems appropriate to support its role (including a Nominations Committee, Remuneration Committee and Risk and Audit Committee) and maintaining oversight of these groups.
Day to day management of RL Commercial is delegated by the Board to the management team under the leadership of Managing Director Rhodri Jones. Financial authorities are in place for each level of the Executive structure.
Business review and results
The accounts for RL Commercial show a break-even result for the financial year ended 31 December 2024 (2023: £nil). In line with the underlying Joint Venture agreement, RL Commercial distributes its Residual Value to the shareholders in full and has done so in 2024.
RL Commercial has maintained an aggregate positive cash balance throughout the year. At 31 December 2024, this aggregate balance was £13,886k (2023: £13,362k).
RL Commercial’s primary activity is to generate value and returns for its shareholders and ultimately professional rugby league clubs. This is essential to sustain the game of rugby league and to ensure future growth in residual value distributions. There are a number of factors which significantly affect RL Commercial’s trading performance.
In recent years the cost of employer’s liability insurance has increased significantly due to risks around player welfare in relation to head impacts on the field. A base cost level of insurance is met by the RFL, the Governing Body of the Sport, with any costs above that base being met by RL Commercial. The past two years have seen premiums begin to stabilise, but the risk remains that the outcome of the ongoing brain injury claim against the Governing Body may impact premiums in future years.
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RL Commercial Limited
Strategic Report (continued)
For the Year Ended 31 December 2024
RL Commercial’s key revenue streams arise from the sale of broadcast rights, the sale of tickets from its major events throughout the season, and the sale of sponsorship rights and partnership fees.
Broadcast rights generated revenues of £23,318k in 2024 (2023: £26,460k) relating predominately from the sale of rights to broadcast the Super League competition including the Super League Grand Final Playoffs and the Grand Final, staged at Old Trafford. The Sport’s partnership with the BBC in relation to the broadcast of the Challenge Cup Competition including the Finals held at Wembley Stadium, as well as 15 Super League matches, also make a significant contribution. Ticketing income in 2024 was £4,649k (2023: £4,603k) which includes sales from the Challenge Cup Semi Finals and Finals, Magic Weekend, the Super League Grand Final Playoffs and Finals, and the Autumn Internationals where England met Samoa in a 2-match series. Revenues of £5,200k were generated from Sponsorship and Partnerships in 2024 (2023: £3,956k). This represents the sale of properties such as the Super League and Challenge Cup titles, properties relating to the England teams as well as a number of properties within RL Commercial’s portfolio. Hospitality and other operating income of £1,340k (2023: £1,368k) relates to revenue generated from Hospitality and programme sales at major events and England Rugby League merchandise sales. Interest receivable of £400k (2023: £151k) relates to interest on bank deposits arising from strong treasury management and favourable interest rates. Staff costs in 2024 amounted to £1,683k (2023: £1,645k). Directors’ remuneration in 2024 was £124k compared to £138k in 2023. The decrease reflects the changes in Board appointments in the Year. Cost of sales were £5,892k in 2024 (2023: £6,132k) and are made up of match day costs from RL Commercial’s central events, and Sponsorship and partnership costs. This represents the staging costs of the Challenge Cup Semi Finals and Finals, Magic Weekend, the Super League Grand Final Playoffs and Finals, and the Autumn International Series. This includes sponsorship activation costs. An element of cost of sales is amounts paid to member clubs in respect of participation fees and prize money from major events. Administrative expenses of £29,014k (2023: £30,406k) were incurred in the year. This can be separated into two parts. The first are amounts payable to Clubs (£24,589k (2023: £26,361k) which constitutes residual value payments made in the year, costs of officiating matches, insurance costs, payments made to the RFL under the Joint Venture agreement, and player welfare costs paid to the Sport’s player welfare charity Rugby League Cares. The true operating costs of RL Commercial were £4,425k (2023: £4,044k). Our people Our People are at the heart of our sport. RL Commercial 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. RL Commercial recognises the enhanced creativity, performance, and legitimacy of an organisation that embraces and celebrates diversity, and are actively striving to realise these benefits throughout the organisation. We recognise that to fully deliver on our mission and be true to our guiding principles, we must be representative of the communities which we serve. We have committed to achieving gender parity and greater diversity on our workforce, whether based on sex, gender, race, disability, sexuality, lower socio-economic groups, or other characteristics.
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RL Commercial Limited
Strategic Report (continued)
For the Year Ended 31 December 2024
Corporate governance
RL Commercial 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. RL Commercial has further enhanced this commitment through continuing to manage itself through its Non-Executive Chair and Non-Executive Director Board structure. RL Commercial provides transparency for shareholders through its statutory external audit programme with external auditors reporting to its Audit and Risk Committee.
More than any other year since the club’s dominance of British Rugby League for the decade leading up to the establishment of the Super League in 1996, the year 2024 belonged to Wigan.
The Warriors, steered as intelligently from the chief executive’s office by the former playing great Kris Radlinski as they were on the pitch by the head coach Matt Peet, won a Grand Slam of trophies unique in the Super League era – Betfred World Club Challenge, Betfred Challenge Cup, League Leaders’ Shield and culminating in the Betfred Super League Grand Final at Old Trafford in October. Their achievements earned recognition well beyond Rugby League as they were named Team of the Year in the BBC’s Sports Personality Awards for 2024 – while Peet was pipped as Coach of the Year by Trevor and Jenny Meadows, who had plotted Keely Hodgkinson’s path to 800 metres Olympics gold in Paris. On the stage and in front of millions, Trevor – who briefly played for Chorley Borough – spoke of his admiration for Peet and the Wigan club, and his pride at being ranked alongside them. BBC Sport’s extended coverage of Rugby League under a new three-year deal to run alongside the continued investment and coverage from Sky Sports had been one of the major features of the 2024 season. Both networks covered Wigan’s breathless 16-12 victory over Penrith Panthers in front of a capacity crowd and record viewing figures in February – a fifth World Club Challenge win for Wigan to equal the record of Sydney Roosters, and their first since 2017. It was also a fourth defeat in the fixture for the Panthers, following their previous appearances against Wigan in 1991, Bradford Bulls in 2004, and another narrow defeat at home to St Helens 12 months earlier. But all who travelled with Penrith enhanced the club’s reputation as the classiest of acts, led by the father and son combination of Ivan and Nathan Cleary. The 2024 season would end with Penrith clinching their fourth consecutive NRL Grand Final victory, unprecedented in the modern era, the weekend before Wigan won their second – leaving little doubt that these were the two outstanding clubs in the sport. Wigan’s Challenge Cup win in June was their 21st – seven more than any other club – but their first at Wembley since 2013. They beat Warrington Wolves, whose Wembley appearance confirmed their position as credible challengers, reflecting the early impact made by Sam Burgess following his first appointment as a head coach. Bevan French won the Lance Todd Trophy as player of the match, his second such award of the year as he had already won the equivalent award for the World Club Challenge, which was named after Bill Ashurst, a forward who played for Wigan and Penrith. French went on to complete a unique treble at Old Trafford in October, when he scored the only try in Wigan’s 9-2 win against Hull KR – a brilliant solo effort – to win the first Rob Burrow Award. That had been introduced at the start of the season, replacing the Harry Sunderland Trophy which dated back to Championship and Premiership Finals, and reflecting Burrow’s indelible link to the Grand Final through the try he scored for Leeds Rhinos against St Helens at Old Trafford in 2011.
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RL Commercial Limited
Strategic Report (continued)
For the Year Ended 31 December 2024
Review of 2024 (continued)
There was added poignancy to French’s award, as there had been to Wembley week four months earlier, after Leeds announced the end of Burrow’s heroic battle against Motor Neurone Disease on the evening of Sunday June 2, six days before the Challenge Cup Final – Rugby League and the wider sporting world paid tribute at Wembley, with applause after seven minutes of each of the day’s four finals. That began with the inspiresport Champion Schools Final for Year Seven Boys – the Steven Mullaney Memorial Match – which was won by St Peter’s Catholic HS of Wigan against Cardiff’s Ysgol Gyfun Gymraeg Glantaf. St Helens beat Leeds Rhinos in the second Betfred Women’s Challenge Cup Final at Wembley – exactly as they had done in the first, this time with a convincing 22-0 scoreline extending their grip on the competition to a fourth year. And Finals Day was completed by Wakefield Trinity romping to a 50-6 win against Sheffield Eagles to become the fifth different winners of the AB Sundecks 1895 Cup since its introduction in 2019. The sight of around 6,000 Trinity supporters celebrating behind the posts, as they became comfortably the best supported 1895 Cup finalists so far, was another Wembley highlight – and Wakefield continued to enjoy their season outside Super League following relegation in 2023, as under their own effective management combination of Daryl Powell and the ebullient owner Matt Ellis, they finished top of the Betfred Championship table by a distance and then beat Toulouse Olympique in the Grand Final. Their return to the elite in 2025 was confirmed days later, secured through the grading system introduced through Rugby League’s strategic partnership with IMG, and replacing a London Broncos team who had battled bravely all season under the intelligent coaching of Mike Eccles, and who only finished bottom behind Hull FC on points difference. Oldham, revitalised by a group of investors put together by the club’s former scrum half Mike Ford, swept to the Betfred League One title under the coaching of Sean Long, and Hunslet also secured promotion to the Championship for 2025 with a thrilling win at Swinton Lions, who were therefore relegated to League One with Dewsbury and Whitehaven – three teams going down as the first step towards establishing three divisions of 12 in 2027. Catalans Dragons won the Betfred Wheelchair Challenge Cup for the second consecutive season, demolishing Wigan Warriors 81-18 in the Final at the English Institute of Sport in Sheffield – with Leeds Rhinos securing their first Betfred Wheelchair Super League title since 2021 with a 52-32 win against Halifax Panthers at the University of Hull. Jodie Cunningham’s Saints were denied a league and cup double despite finishing top of the BWSL table by four points. That earned them home advantage in the Grand Final but they were stunned by Lindsay Anfield’s York Valkyrie, who won 18-8 to secure their second consecutive BWSL title – in front of a competition record crowd of 4,813. Their full-back Georgie Hetherington, who had already been named Woman of Steel, added the Player of the Match award in her last appearance under that surname – she resumed her career in 2025 as Georgie Dagger, after marrying the York Knights player Will. England Women had two comfortable wins in 2024 – 42-0 against France in Toulouse in mid-season, then 82-0 against Wales at AMT Headingley in November, with the Wigan wing Anna Davies scoring five tries, and her Warriors team-mate Isabel Rowe kicking nine goals on her 18th birthday. England Men also had a comfortable mid-season win against France in Toulouse, with two tries apiece for Ash Handley, Tom Johnstone and Jack Welsby, and extended their winning record to seven matches since the 2022 World Cup with an impressive 2-0 series win against Samoa in the autumn. The Samoans, coached by Ben Gardiner and captained by Jarome Luai, were expected to offer more threat to England than Tonga on an equivalent tour 12 months earlier, having stunned England in that World Cup semi final in London. But Shaun Wane’s team again combined tough defence with skillful attack to secure wins by 34-18 at Wigan’s Brick Community Stadium and 34-16 at AMT Headingley. At that point, they were planning for a tour to Australia in 2025 – but the year ended with the first moves being made behind the scenes for a first Ashes series in England since 2003.
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RL Commercial Limited
Strategic Report (continued)
For the Year Ended 31 December 2024
Review of 2024 (continued)
On behalf of the board, I would like to extend my thanks and gratitude to the RL Commercial Executive team for their dedication and hard work throughout the year – at times it was unrelenting with back to back event weekends, but they delivered increased numbers across their audience, attendance and digital metrics, and commercial and ticket income targets.
This report was approved by the board and signed on its behalf.
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RL Commercial Limited
Directors' Report
For the Year Ended 31 December 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements 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.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
RL Commercial has been assigned the rights of all the commercial properties of the professional Sport of Rugby League 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. RL Commercial distributes residual value payments to both the RFL and SLE, in line with the underlying agreement. SLE acts as a vehicle to pass these payments onto Super League Clubs, while the RFL receives payment for the provision of services to RL Commercial as well as distributing Championship and League 1 clubs their share of the residual value payments. Under this business model, all stakeholders have a vested interest in the success of RL Commercial, which continues its long-term relationship with a strategic partner to further help drive the commercial value of the sport.
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RL Commercial Limited
Directors' Report (continued)
For the Year Ended 31 December 2024
The Board has established two 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:
∙Consider the appointment of the external auditors and their independence;
∙Consider the appointment of the internal auditors and review the RLC’s internal audit programme;
∙Review the RLC’s financial statements;
∙Recommend approval of the RLC Budget to the Board; and
∙Review the effectiveness of the internal control systems of the RLC including the process for managing risk.
The Audit and Risk Committee consists of 5 members, 2 of whom are Non-Executive Directors, 1 is the Company Secretary and 1 is the RFL Director of Finance, Facilities and Central Services. The Audit and Risk Committee was chaired in 2024 by Non-Executive Director Jonathan Murphy (in part), and by the Chair Frank Slevin. The Audit and Risk Committee met on 3 occasions in 2024. Nomination & remuneration committee The principal purposes of the Committee are to:
∙Ensure that there is a formal and transparent policy on Board and Senior Executive remuneration; and
∙Determine the remuneration packages of the Chairman, other Directors, and Senior executives.
∙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 Managing Director and any executive it is envisaged will have a basic salary of £100,000 or more); and
∙Keep under review the composition of the Board and Board sub-committees and make recommendations to the Board in relation to the same.
The Committee is appointed by the Board and comprises at least three members all of whom shall be nominated directors. The Nomination and remuneration committee met on one occasion in 2024.
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RL Commercial Limited
Directors' Report (continued)
For the Year Ended 31 December 2024
Internal control
The Board is responsible for establishing and maintaining the system of internal controls. Internal control systems are intended to meet the needs of the organisation and the risks to which it is exposed. By their nature, such systems and procedures are designed to manage rather than eliminate the risk of failure to achieve objectives and can therefore provide reasonable and not absolute reassurance against material loss or misstatement. Key elements of the internal control systems are:
∙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.
The profit for the year, after taxation, amounted to £NIL (2023 - £NIL).
The directors who served during the year were:
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RL Commercial Limited
Directors' Report (continued)
For the Year Ended 31 December 2024
The directors have considered the Company’s financial position and future prospects, including its funding and cash flow forecasts for a period of at least 12 months from the date of approval of the financial statements. Although the Company had net current liabilities of £112,489 (2023: £112,370) and net liabilities of £90,256 (2023: £90,256) as at the reporting date, the directors have a reasonable expectation that the Company will continue to have adequate resources to meet its obligations as they fall due.
This expectation is supported by the Company’s operating model, under which it distributes surplus funds to stakeholders after meeting all of its costs and liabilities. As such, the Company retains full discretion over the level and timing of distributions, providing it with a high degree of control over its financial position. Accordingly, the directors consider it appropriate to continue to adopt the going concern basis in preparing these financial statements.
An indication of likely future developments in the business have been included in the Strategic Report.
There have been no significant events affecting the Company since the year end.
The auditors, Hurst Accountants Limited, were appointed during the year and will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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RL Commercial Limited
Independent Auditors' Report to the Members of RL Commercial Limited
We have audited the financial statements of RL Commercial Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of 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).
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. 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.
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RL Commercial Limited
Independent Auditors' Report to the Members of RL Commercial Limited (continued)
In our opinion, based on the work undertaken in the course of the 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.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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RL Commercial Limited
Independent Auditors' Report to the Members of RL Commercial Limited (continued)
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 Auditors' 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Identifying and assessing potential risks related to irregularities In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
∙The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
∙The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud.
∙Supporting documentation relating to the Company's policies and procedures for:
°Identifying, evaluating, and complying with laws and regulation.
°Detecting and responding to the risks of fraud.
∙The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
∙The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
∙The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Anti-bribery and Corruption.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
∙Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
∙Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
∙Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
∙Enquiring of management about any actual and potential litigation and claims.
∙Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
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RL Commercial Limited
Independent Auditors' Report to the Members of RL Commercial Limited (continued)
We have also considered the risk of fraud through management override of controls by:
∙Testing the appropriateness of journal entries and other adjustments.
∙Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
∙Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. 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 for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Accountant and Statutory Auditors
3 Stockport Exchange
Stockport
Cheshire
SK1 3GG
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RL Commercial Limited
Statement of Comprehensive Income
For the Year Ended 31 December 2024
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RL Commercial Limited
Registered number: 13938431
Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 30 form part of these financial statements.
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RL Commercial Limited
Statement of Changes in Equity
For the Year Ended 31 December 2024
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RL Commercial Limited
Statement of Cash Flows
For the Year Ended 31 December 2024
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RL Commercial Limited
Analysis of Net Debt
For the Year Ended 31 December 2024
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RL Commercial Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
RL Commercial Limited is a private company limited by shares incorporated in England and Wales, company number 13938431. The registered office is RL Commercial, Gate 13, Rowsley Street, Etihad Campus, Manchester, M11 3FF.
The primary activity of RL Commercial Limited is to enhance the commercial value of Rugby League rights and properties, with the objective of maximising returns for Rugby League Clubs. This is carried out in line with the joint venture agreement between The Rugby Football League Limited and Super League (Europe) Limited.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The directors have considered the Company’s financial position and future prospects, including its funding and cash flow forecasts for a period of at least 12 months from the date of approval of the financial statements. Although the Company had net current liabilities of £112,489 (2023: £112,370) and net liabilities of £90,256 (2023: £90,256) as at the reporting date, the directors have a reasonable expectation that the Company will continue to have adequate resources to meet its obligations as they fall due.
This expectation is supported by the Company’s operating model, under which it distributes surplus funds to stakeholders after meeting all of its costs and liabilities. As such, the Company retains full discretion over the level and timing of distributions, providing it with a high degree of control over its financial position. Accordingly, the directors consider it appropriate to continue to adopt the going concern basis in preparing these financial statements.
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RL Commercial Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Revenue from broadcasting and sponsorship contracts is recognised on a straight-line basis over the duration of each contract. Revenue from ticket and hospitality sales is recognised in line with the delivery of the associated event. Income is derived primarily from a broadcast agreement in place until 2026. Commercial sponsorship agreements have varying end dates, with expiries scheduled over the next two years. Income from match staging is recognised annually. With effect from 1 January 2023, the Rugby Football League Limited and Super League (Europe) Limited receive a share of the net residual revenue generated within RL Commercial Limited. This revenue share is determined in accordance with a framework agreement between RL Commercial Limited, Super League (Europe) Limited, the Rugby Football League Limited, and RFL (Governing Body) Limited.
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RL Commercial Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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RL Commercial Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
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RL Commercial Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged.
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RL Commercial Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
The directors believe that judgements, estimates and assumptions do not have a significant risk of causing a material difference to the carrying amounts of the assets and liabilities within the next financial year.
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RL Commercial Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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RL Commercial Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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RL Commercial Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
There were no factors that may affect future tax charges.
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RL Commercial Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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RL Commercial Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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RL Commercial Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
Profit and loss account
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administrated fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £48,360 (2023: £49,261). Contributions totalling £10,767 (2023: £Nil) were payable to the fund at the balance sheet date.
RL Commercial Limited is equally owned by the Rugby Football League Limited and Super League (Europe) Limited. No one entity is deemed to have control and therefore this entity is not consolidated by either entity.
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