THE MAJORITY of Super League clubs whose financial year runs to the end of November each year have recently posted their 2023 accounts with Companies House.
And, although most of them have posted significant losses, some have taken action to improve their grading scores prior to next month’s announcement of the IMG gradings going into the 2025 season.
Of the 20 IMG grading points, 4.5 are awarded under the heading of finance, with a potential 2.25 points awarded for non-centralised turnover of more than £2.5 million, 0.75 points awarded where non-centralised turnover is more than 70 percent of the total, 0.5 points for an adjusted net profit of more than £1 over three accounting periods, 0.5 points for owner-investment of more than £500,000 and 0.5 points awarded for a balance sheet value of more than £100,000.
The accounts lodged with Companies House are not sufficiently detailed to make judgements in relation to all those elements of the grading score.
But some clubs have shown improved balance sheets because of revalued assets or by directors investing new money or writing off part of their loans.
Castleford’s annual report reveals no details of total income but its profit and loss reserve suggests a loss of £515,427. But the club revalued the club’s stadium, adding £5,747,190 to the value of its assets and giving it an overall positive balance sheet value.
Huddersfield similarly don’t give any details of turnover but their profit and loss reserve has improved to the tune of £3,273,812. That is mainly because of the reduction of short-term liabilities year-on-year from £22,172,862 to £19,386,497.
There is no explanation of that reduction in the lodged accounts, although it would appear likely to be down to owner Ken Davy writing off some debt that the company owes him.
Of the two Hull clubs, Hull FC lodged their accounts in April and their profit and loss reserve account declined by £977,764, whereas Hull KR’s figure declined by £366,578.
Sporting Club Leigh Limited showed a significant improvement in its balance sheet from a year earlier, with a negative profit and loss account of £1,378,842 turned into a positive total of £786,307, which represents an improvement to the tune of £2,165,149.
The accounts reveal that Leopards owner Derek Beaumont’s company AB Sundecks Limited supplied sponsorship income to the tune of £1,325,000, compared to zero the previous year. At the balance sheet date the club owed £207,529 to AB Sundecks, compared to £743,835 a year earlier.
London Broncos accounts hadn’t been filed at the time of writing and were overdue.
Salford City Reds (2013) Limited saw its profit and loss account decline by £396,175 to a negative figure of £3,957,031 from £3,560,856 the previous year.
Warrington Sports Holdings Limited lost £1,755,984 before tax in 2023.
The accounts of Leeds Rhinos and St Helens have been analysed here, and Wigan Warriors here.
Aspiring Super League club Wakefield operate through a company named Spirit of 1873 Limited, whose turnover in 2023 rose from £3,895,700 to £4,629,104, despite the club being relegated in that year.
That income included an exceptional item, consisting of a loan of £1,275,000 written off by former club owner Michael Carter.
Its reported profit for the financial year was £2,709,025, while the value of its tangible assets rose from £6,302,583 to £14,621,698 because of the construction of its new east stand.
Another Championship club that hopes for a return to Super League, Bradford, has also posted a profit for 2023, in its case £21,916, compared to a loss of £270,288 the previous year, coming from a turnover that increased from £1,715,762 in 2022 to £2,131,351 in 2023.
“We do try to run the club sustainably, because frankly, we have no alternative other than to do so,” Bulls chairman Nigel Wood told League Express.
“If this is achieved, it is only thanks to herculean efforts of numerous supporters and volunteers who are willing to give their time and in some cases their money to support professional Rugby League.
“It does, however, get harder and harder each season with cost increases, salaries inflation and now Covid loan repayments to deal with.
“Some time ago the RFL referred to the sport’s centrally generated income reduction, euphemistically, as a ‘correction’ in TV values. Well there does not seem to have been a reciprocal correction in the cost base of professional Rugby League.
“Recent events around the sport suggest that some thinking in this area may perhaps be overdue.”
- The original version of this article incorrectly reported that the loan written off at Wakefield Trinity was from Matthew Ellis. In fact it was from the club’s former shareholder Michael Carter.
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