BY JOHN DAVIDSON
International Rugby League (IRL), the sport’s governing body, has released its annual report showing a loss of £641,528 for its UK arm for the year ending 2021.
This was a reduction of an operating loss of £1,235,504 in 2020. Historically the international federation has conducted business through an Australian-based company, however, now the vast majority of its financial transactions come through its UK-based company.
The accounts for the year ending 2021 do not include the revenue generated from last year’s World Cup. The report states: “The overwhelming majority of income over any four-year financial cycle is generated from the staging of the Rugby League World Cup.
“Given that, at the time of preparing these accounts, no world cup had taken place since the UK Company scaled up its operations, it has historically had modest income levels compared to its operating costs. In 2021, as the world started to emerge from the Covid pandemic, a modest number of international fixtures were staged, generating only £3,000 of levy income.
“Additionally, grants payable to full members and confederations are now being administered through the Australian Company rather than the UK Company.
“Interest of £152,000 was paid during the year at a commercial rate on the loan from the Australian Company. This means that overall the UK company made a trading loss of £642,000.
“The company’s balance sheet shows that it has relied on financing from the Australian Company (out of the profits from previous world cups) and also on advances received on its 2021 Rugby League World Cup rights fee. Following the deferred staging of the 2021 event, in 2022 the profits from the competition resulted in the company having a healthy, positive balance sheet going forward.”
The IRL’s Australian-based company, titled Rugby League International Federation Limited, had A$277,000 of income and A$487,000 of operating costs, producing a deficit of A$194,000 after tax, for the year ending 31st October 2021.
“The income for the year came principally from interest receivable on the loan to the UK Company,” the report states.
“The reason for the creation of the deficit as compared to the surplus in the previous year is the decision to account for the grants in this company. The company’s balance sheet shows that it has A$3.2million of net assets.
“Approximately A$2.7million of thishas been advanced as financial support to the UK Company.”
The IRL has been approached for comment.
