Salford Bailout

[dboy]

As admin locked the last Salford thread because some Salford fans complained that people were upsetting them with facts, is it ok to mention their latest bailout or not?

Salford council gave Red Devils £315,000 in 'immediate' financial support - Manchester Evening News

 

[LeytherRob]

A club spokesperson said: "On this occasion, we have received financial support from the local authority to secure the financial sustainability of the club – and one reason we have received this is due to unnecessary delay and obstruction from the current opposition which has set the budgeted timeline back.

"To challenge the perpetual false narrative that the club seemingly does not pay its way, we would also like to be clear that the club have paid and continue to pay rent on a monthly basis that is higher than any amount paid by any of the club’s previous ownership since moving into the Salford Community Stadium."

Considering the previous stories about SRD failing to pay rent, that seems a very creative way of not admitting whether or not they are currently paying the full rent on their lease. £370k on top of £170k they haven't paid back from last year really isn't a good look and maybe I'm missing something but I don't see where the sums are adding up for SRD when they keep pointing to food and drink sales as being the thing to fill the hole in their budget. 

If you are already on a massively reduced wage bill in relation to the salary cap, and receiving additional loans to stay afloat, I don't see how getting a small % from concessions is going to suddenly turn them into a self sufficient SL club paying it's rent/ loans and a somewhere competitive salary cap level. 

 

 

[moorside roughyed]

I've just read Salford council were £5.9 million in the red. But they've managed to come up with this cash for them. That's odd

[PREPOSTEROUS]

Player sales, fan investment, council loans, not far off £1m deficit.  That's a large hole to fill, or a lot of pints to sell. Hope you're thirsty Salford fans.

[LeeF]

7 minutes ago, LeytherRob said:

A club spokesperson said: "On this occasion, we have received financial support from the local authority to secure the financial sustainability of the club – and one reason we have received this is due to unnecessary delay and obstruction from the current opposition which has set the budgeted timeline back.

"To challenge the perpetual false narrative that the club seemingly does not pay its way, we would also like to be clear that the club have paid and continue to pay rent on a monthly basis that is higher than any amount paid by any of the club’s previous ownership since moving into the Salford Community Stadium."

Considering the previous stories about SRD failing to pay rent, that seems a very creative way of not admitting whether or not they are currently paying the full rent on their lease. £370k on top of £170k they haven't paid back from last year really isn't a good look and maybe I'm missing something but I don't see where the sums are adding up for SRD when they keep pointing to food and drink sales as being the thing to fill the hole in their budget. 

If you are already on a massively reduced wage bill in relation to the salary cap, and receiving additional loans to stay afloat, I don't see how getting a small % from concessions is going to suddenly turn them into a self sufficient SL club paying it's rent/ loans and a somewhere competitive salary cap level. 

 

 

They aren’t paying the full rent and never have done otherwise they would have said so. My take is that even if they paid £10 per month that would be more than previously paid.

Anyone who believes that it is solely the lack of income from concession sales is the main underlying issue here is deluded. The amount they raised from the public and various transfer fees over the last 12-18 months vastly exceeds any lost income pop and crisp sales

[OriginalMrC]

Anyone know why they continue to struggle. I know they get smaller crowds than other teams but they've been upper end of the SL table and had some good cup runs in recent years and will have had decent prize money. 

[dboy]

3 minutes ago, OriginalMrC said:

Anyone know why they continue to struggle. I know they get smaller crowds than other teams but they've been upper end of the SL table and had some good cup runs in recent years and will have had decent prize money. 

Spend more than they earn, including on high-profile players.

More money going out, whilst not even meeting their current bills (loan repayments and rent), than coming in.

[LeytherRob]

3 minutes ago, OriginalMrC said:

Anyone know why they continue to struggle. I know they get smaller crowds than other teams but they've been upper end of the SL table and had some good cup runs in recent years and will have had decent prize money. 

Prize money tends to be shared amongst players usually as bonuses, so performance doesn't really translate to increased cashflow unless the fans come through the doors. Which based on Hull KR providing 1200(as per their club announcement) of Salfords 5k gate last weekend, isn't happening.

[Pie tries]

They earn nothing from the stadium. The deal to move to the stadium was appalling. Salford council want the rugby team to continue and recognise the above. Once they can earn revenue and can pay a fair rent then they will be in better waters 

[dboy]

6 minutes ago, Pie tries said:

They earn nothing from the stadium. The deal to move to the stadium was appalling. Salford council want the rugby team to continue and recognise the above. Once they can earn revenue and can pay a fair rent then they will be in better waters 

That's a relief. Salford tax payers will sleep easier.

Maybe over the preceding decade they could have kept a lid on it by not spending more than they earn and not signing players they can't afford?

Just a suggestion of course.

[Bull Mania]

8 minutes ago, Pie tries said:

They earn nothing from the stadium. The deal to move to the stadium was appalling. Salford council want the rugby team to continue and recognise the above. Once they can earn revenue and can pay a fair rent then they will be in better waters 

Whether the deal was appalling or not, in 12 months  they've needed "emergency funds" which includes transfer money, fan donations, multiple council loans that has exceeded £1 million. This new stadium deal isn't going to make Salford £1million a year better off. 

[StandOffHalf]

I have always thought that it was a terrible mistake on Salfard's part to move from The Willows.

[LeytherRob]

4 minutes ago, Pie tries said:

They earn nothing from the stadium. The deal to move to the stadium was appalling. Salford council want the rugby team to continue and recognise the above. Once they can earn revenue and can pay a fair rent then they will be in better waters 

Again maybe i'm missing something glaring here, but if they aren't getting any money from the stadium, aren't paying anywhere near the cap, can't afford their current budgets without additional top up loans on top of existing debts to the council...how will *some* additional revenue from the stadium allow them to pay fair rent and service all the previous debts. And as others have mentioned, there has also been the one off share scheme and several high value player sales just to maintain this already negative position.

[phiggins]

34 minutes ago, Pie tries said:

They earn nothing from the stadium. The deal to move to the stadium was appalling. Salford council want the rugby team to continue and recognise the above. Once they can earn revenue and can pay a fair rent then they will be in better waters 

What should they earn from the stadium, given they do not own it?

[phiggins]

25 minutes ago, dboy said:

That's a relief. Salford tax payers will sleep easier.

Maybe over the preceding decade they could have kept a lid on it by not spending more than they earn and not signing players they can't afford?

Just a suggestion of course.

The Salford tax payers will get their chance to have their say on the council's decisions in May. Not often fans of a club can vote for or against the club's main benefactor, which the council appear to be here.

[Expatknight]

It cannot be right that a club with all the problems financially as Salford appear to have get bailed out by council tax payers money, at the end of the day they have to show they are a viable business. it sets a very dangerous precedent.

 

[sam4731]

How many IMG points does this get you deducted?

[Archie Gordon]

It would be nice if some respect could be shown to the 8th biggest club in the Northern hemisphere.

[dboy]

15 minutes ago, sam4731 said:

How many IMG points does this get you deducted?

"Grade A & B must not have an Insolvency Event as defined in Insolvency Policy. Downgrading of the club’s grade by one level i.e. from A to B for the year following the Insolvency Event."

[Charlie]

1 hour ago, dboy said:

That's a relief. Salford tax payers will sleep easier.

Maybe over the preceding decade they could have kept a lid on it by not spending more than they earn and not signing players they can't afford?

Just a suggestion of course.

Don’t worry pal we’re fine 

[Charlie]

57 minutes ago, StandOffHalf said:

I have always thought that it was a terrible mistake on Salfard's part to move from The Willows.

Didn’t really have a choice as it wasn’t deemed sl standard the issue has been how it was dealt with at the time 

[dboy]

3 minutes ago, Charlie said:

Don’t worry pal we’re fine 

You don't speak for the 270,000 residents of Salford.

[DemonUK]

1 hour ago, Bull Mania said:

Whether the deal was appalling or not, in 12 months  they've needed "emergency funds" which includes transfer money, fan donations, multiple council loans that has exceeded £1 million. This new stadium deal isn't going to make Salford £1million a year better off. 

You forgot asking fans to take loans out to give to the club

[Tommygilf]

21 minutes ago, Archie Gordon said:

It would be nice if some respect could be shown to the 8th biggest club in the Northern hemisphere.

8th Biggest?

8th best in the gradings maybe, but not 8th biggest.

[Tommygilf]

2 hours ago, OriginalMrC said:

Anyone know why they continue to struggle. I know they get smaller crowds than other teams but they've been upper end of the SL table and had some good cup runs in recent years and will have had decent prize money. 

Essentially the crowds are too small.

Salford's stadium deal has been far from ideal yes, but that is an issue compounded by the fact they simply do not generate enough income elsewhere. They can't generate funds from the food and beverages, but they don't generate enough from the seats they are able to sell. Likewise there clearly isn't enough cash flow in the club shop etc. 

It appears Salford also seem to spend beyond even their meagre means on the playing budget. 

Its like Huddersfield without Ken Davy.