Premier_Rugby_Limited - Accounts

The directors present the strategic report for the year ended 30 June 2023.

2023 Overview

Premiership Rugby is focused on innovating to deliver world-class sporting entertainment. In 2023, we delivered a number of impressive results on the pitch, including:

• An average of seven tries per match - a Premiership Rugby record. 

• A total of 43% of games finishing within seven points. 

• Five clubs also saw upticks in attendances, most notably at Leicester Tigers, with an average of over 22k for the season.  

• Bristol Bears averaged 18.4k fans. And finalists Saracens and Sale Sharks both also saw an increase – as did Gloucester Rugby.

• England and Saracens captain Owen Farrell lifted the trophy for the first time since 2019 as the previous year’s runners-up went one better in the battle between North and South. 

• Exeter Chiefs won the Premiership Rugby Cup, beating London Irish at home. 

• Chris Ashton become the first player to reach 100 Tries in Premiership Rugby history and England centre Ollie Lawrence was named as the Gallagher Premiership Rugby player-of-the-season.  

Our fan engagement has also continued to grow, with strong audiences and share of voice:

• There were seven Premiership Rugby matches free-to-air on ITV, culminating in the Gallagher Premiership Rugby Final at Twickenham Stadium. 

• ITV’s average figures rise to 475,000 per game – up 3.5% on the previous year.  

• The Gallagher Premiership Rugby Final on May 27 between Saracens and Sale Sharks, who made their first final in 17 years, was broadcast on both BT Sport and ITV.  And a record-breaking audience share of 13.5% delivered our best number for that metric. It was also Premiership Rugby’s second-most watched final ever. 

• Our new streaming service, PRTV Live, continued to provide full coverage of Premiership Rugby, delivering games not broadcast on ITV or BT.

• Amazon’s commission of a two-part docuseries, Mud, Sweat and Tears: Premiership Rugby, filmed by globally renowned production company Fulwell73, culminated on the final day of the season at Twickenham Stadium. The documentary premiered during the 2023 Rugby World Cup at Battersea Power Station after the trailer registered more than 1 million views in less than 24 hours thanks to huge interest and excitement as players helped drive audiences via their own social channels. 

We must however acknowledge that 2023 was a challenging year for Premiership Rugby Clubs, as we continued to work our way back from COVID. We were deeply saddened to see Worcester Warriors, Wasps and London Irish filing for administration.

Commercial Progress

Off the pitch Premiership Rugby started a new partnership with Funding Circle as the small business lender made their first foray into sports sponsorship. They joined title partner Gallagher, Defender, London Pride, Ticketmaster, Gilbert, The Famous Grouse and BT Sport. 

In March, Premiership Rugby secured an exciting new partnership with media operator Ocean Outdoor, as they were appointed as the official out of home (OOH) supplier for the next three seasons. The partnership allows Ocean Outdoor to broadcast highlights of club matches.  

Clips appeared on large format Digital Out of Home (DOOH) screens with highlights across hand-picked screens located in proximity to Premiership Rugby clubs in five cities. 

Ocean’s full motion screens in London, Leeds, Birmingham, Manchester and Newcastle showed rugby action in six further 48-hour bursts from Round 20 until the final. 

During the week of the Gallagher Premiership Rugby Final we also welcomed British watch brand Christopher Ward to our impressive line-up of partners. 

In January we launched the Shot Clock – both in stadia and on broadcast as part of our drive to evolve the matchday experience for all and improve the fan experience.  And this is now branded by Christopher Ward as part of their partnership.  

Our digital platforms took a huge step forward in the 2022-23 season, with a total of 1.2m followers across all platforms - a 10% increase vs the start of the season.  This delivered 443 million impressions, 14.6 million engagements, and 125 million video views, creating a huge global reach for both Premiership Rugby and Gallagher Premiership Rugby.

Governance Reforms

Following the financial pressures on some of our teams, we announced in February that Sir Nigel Boardman would lead a review of the financial position of clubs - the first step towards stablishing our Financial Monitoring Panel (FMP).  Boardman previously led Government inquires and has worked with a range of sporting institutions. In addition to his work, the Sporting Commission was also established to bring independent governance and streamline decision making.  

Financial Performance

From a financial perspective, revenue reached £62.9m, down 4% on the previous season which had been boosted by one-off income for the European competitions. 

And, as articulated in the strategic report for previous years, the company now posts an accounting loss which is to do with the accounting treatment of the CVC investment in that period, as opposed to reflecting operating performance.

There are three key areas of work that help lay solid foundations for the future of Premiership Rugby, utilising our community programmes to provide brighter futures for young people through better access to the sport and personal development initiatives, working towards a diverse and inclusive league that supports equality of opportunity for all and minimising our impact on the environment.

To achieve this, we work in collaboration with our clubs, our investors, their associated foundations, our players, broadcast partners, commercial partners, the RFU as governing body for the sport, along with like-minded 3rd sector organisations.

Our community programmes are focused on improving access to sports participation, especially under-represented groups in the game and creating positive social outcomes through improved physical and mental health, educational attainment, employability, and community cohesion. During the 22/23 season Project Rugby, now in its 8th year has allowed us to target under-representation in the game and support 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. The programme reached a milestone of 90,000 participants in March 23.

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 by supporting teachers and our Award-winning HITZ programme addresses social change by supporting education and employability skills for young people Not in Education Employment or Training (NEET). Our Champions programme, along with its associated resources Tackling Health, Tackling Numeracy and Tackling Character, have increased healthy eating and physical literacy, improved numeracy skills, and developed character amongst Primary School pupils.

From an Inclusion and Diversity perspective we are committed to ensuring Premiership Rugby is a diverse, welcoming, and inclusive environment both on and off the field for our staff, players, and fans. In April 23 Premiership Rugby in partnership with the RFU, Premiership Women and the RPA utilised the findings of the elite game research into racism and classism and the impact of Luther Burrell’s experiences to focus and accelerate work that was already underway to publish its Inclusion and Diversity Action Plan for the elite game. And following the completion of a Game wide survey and follow-up interviews with players and club staff we launched an Inclusive Cultures initiative for all players and coaching staff and supported our Clubs more broadly with targeted workshops on the importance of diversity for effective governance and cultural change. During 2023 Premiership Rugby continued to support the Sporting Equals Leadership programme through the funding of 5 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”.

Since the last reporting period, Premiership Rugby (PRL) have relocated to a new office space, shared 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 51,066 kWh, or 12,913 kg / co2e. This was calculated using a distance-based approach, with data accessed from 01/07/2022 – 30/06/2023, and converted using 2023 UK Government greenhouse gas conversion factors – see next page.

PRL’s business and all our rugby clubs are regularly engaged around sustainability practices and environmental considerations within their operations, and an internal sustainability working group has been created in the PRL offices across procurement, marketing, and partnerships’ teams to implement sustainability considerations into decision making. In June 2023, we conducted a consultation exercise with all Premiership clubs to better understand their sustainability aspirations across Procurement, Energy and Emissions, Water, Waste Management, Travel and Materials. We are now working closely with them to compile our future PRL Environmental Sustainability Strategy which will be launched in season 23/24.

A major factor affecting the league is the financial health of the shareholder clubs, as illustrated by 3 shareholder clubs filing for administration during the season. The establishment of the Financial Monitoring Panel is one of the main actions we have taken in response to that, as well as strong collaboration with the RFU and DCMS. DCMS are a major stakeholder for the league and clubs by virtue of the support provided during Covid through the Sports Survival Package. This support was critical during the pandemic but it should be noted that the loans extended through this package will remain on the clubs’ balance sheets for many years to come. We continue to work closely with clubs, Sport England and DCMS on this topic.

Other significant risks for the league include:

• Reliance on a limited number of revenue streams and customers which each form a high proportion of overall revenue;

• The renewal of the Professional Game Agreement (which expires on 30 June 2024), setting the terms for the relationships between RFU, Premiership clubs and Premiership Rugby;

• A resurgence of Covid leading to suspension / cancellation of the league or matches being played behind closed doors.

The company maintains a full Risk Register which is regularly reviewed with the Audit, Risk & Ethics Committee and shared with the PRL Board.

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.

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.

On behalf of the board

The directors present their annual report and financial statements for the year ended 30 June 2023.

The company's principal activity is to promote and develop professional club rugby by pursuing the collective interests of its shareholders in accordance with the Shareholders' Agreement and in line with other policies approved by the Board from time to time.

The results for the year are set out on page 12.

Contractual Ordinary dividends of £14,118,860 were payable at the period end. The directors do not recommend payment of a further dividend.

No director had any direct interest in the shares of the company. The Board of Directors represents the clubs and other shareholders who own and receive distributions from Premier Rugby Limited. The interests of directors in the clubs and other shareholders can be found in the financial statements of the individual clubs concerned.

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Saffery LLP have expressed their willingness to continue in office.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors 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 the directors 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors 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 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 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.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of its fair review of the business, details of the group's risks and uncertainties and also its' future developments.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of Premier Rugby Limited (the 'company') for the year ended 30 June 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and 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).

In our opinion the financial statements:

•     give a true and fair view of the state of the company's affairs as at 30 June 2023 and of its loss 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

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 company 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 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

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

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.

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.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 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

•     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.

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 company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, 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 company by discussions with directors and by updating our understanding of the sector in which the company operates.

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 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 company'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 company'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 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.

Premier Rugby Limited is a company limited by shares incorporated in England and Wales. The registered office is Thomas House, 84 Eccleston Square, London, SW1V 1PX.

These financial statements have been prepared in accordance 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 company. 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.

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 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: 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;

The financial statements of the company are consolidated in the financial statements of Premier Rugby Holdings LLP. These consolidated financial statements are available from its registered office, Thomas House, 84 Eccleston Square, London, SW1V 1PX .

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors 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.

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. Annual impairment reviews are undertaken and provision is made for any diminution in value.

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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.

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.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Cash at bank and in hand are basic financial assets and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company applies 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 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, 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 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, 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.

Other financial liabilities, including debt instruments that do not meet the definition of a basic financial instrument, are measured at fair value through profit or loss.

Debt instruments may be designated as being measured at fair value though 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 direct issue costs.

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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

The tax expense represents the sum of the tax currently payable and deferred 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.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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 fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

The company operates a defined contribution scheme for the benefit of its employees. 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 leases 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 are included in the profit and loss account for the period.

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.

Club prepayment

A prepayment of club distributions was made in 2018/19. This prepayment is being released over a 4 year period on a straight line basis to coincide with future revenue streams.

An analysis of the company's turnover is as follows:

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The aggregate compensation of key management personnel during the year was £714,988 (2022: £437,489). This includes 3 individuals of whom 2 joined during the course of FY21/22.

The actual charge/(credit) for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

Premier Rugby Limited owns 100% of the issued share capital of Premiership Rugby Limited. This company was dormant throughout the year

Commercial rights prepayment has been released over a four year period to coincide with future commercial revenue and obligations of the Clubs over that timeframe. The prepayment was fully released at the year end.

The company 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.

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 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:

No director had any direct interest in the shares of the company. The Board of Directors represent the Premiership rugby clubs who own, and receive distributions from, Premier Rugby Limited. The interests of the directors in the Premiership clubs can be found in the financial statements of the individual clubs concerned.

At the balance sheet date, an amount of £10,608 (2022; £10,413) was owed by PRL Investor Limited, an associated company.

At the balance sheet date, an amount of £19,544,310 (2022; £413) was owed by Premier Rugby Holdco Limited, the parent company.

At the balance sheet date, an aggregate amount of £590 (2022; £413) was owed by Premier Rugby Holdings LLP, the ultimate parent company.

The parent company of the entity is Premier Rugby Holdco Limited. The ultimate controlling party is Premier Rugby Holdings LLP, the accounts of which are publically available at its registered office Thomas House, 84 Eccleston Square, London, SW1V 1PX.

A total of £602,850 relating to TMO costs and match statistics was reallocated from Administrative expenses to Cost of sales in the comparative year. This has not affected the prior year profit.