Salford financial issues(again…)

[LeytherRob]

11 minutes ago, RS said:

I’ve no idea what the position is and what salaries the players are on but if you release four players at 100k each the saving is not 400k (plus NI and pension) as you probably have to spend around 40k per player to replace the higher wage earner to ensure the squad is big enough. 
 

it’s further complicated as the top end Championship players who could possibly do a job are-

 

A Tied up to contracts with Championship clubs as most club’s business is done

B Those lads will probably have jobs they are not prepared to give up so they can have one year in SL

Only other option is young players from rivals again a number of whom will already be on season long loans

There are a few players still floating around without clubs that will be available on cut price deals, those that immediately spring to mind are Jack Walker and Ryan Hampshire. It would probably need to be a case of swapping out 4 or 5 higher earners

[Exiled red]

4 hours ago, Bedfordshire Bronco said:

As a SL club? If so yes I completely agree 

As a Championship RL club? It is perfect 

Salford have had on field success galore with finals and play offs etc and a nice style of play .....they just aren't able to support a SL franchise ...I think they could have won their two finals and it would not have made that much difference to crowds and income 

They would however perfectly into the Championship ...and Moor Lane is more than adequate for the rugby league championship 

Franchise?

[binosh]

35 minutes ago, LeytherRob said:

There are a few players still floating around without clubs that will be available on cut price deals, those that immediately spring to mind are Jack Walker and Ryan Hampshire. It would probably need to be a case of swapping out 4 or 5 higher earners

I’m sure other clubs would be more than happy to loan players to Salford aswell to top the roster up there are some good players not getting a start at clubs.

[RS]

5 minutes ago, binosh said:

I’m sure other clubs would be more than happy to loan players to Salford aswell to top the roster up there are some good players not getting a start at clubs.

Possibly but they still come at a cost. The point I was making was to save 400k you’d have to release 600k of cap players as it would cost circa 200k just to put semi competent players back in the squad to ensure you turned 17 out. 

[Charlie]

41 minutes ago, RS said:

Possibly but they still come at a cost. The point I was making was to save 400k you’d have to release 600k of cap players as it would cost circa 200k just to put semi competent players back in the squad to ensure you turned 17 out. 

Exactly not as simple as people think, and I’m not sure other clubs would send players 

[RigbyLuger]

What have the "shareholders" been told since buying their "shares" in the club?

[Charlie]

10 minutes ago, RigbyLuger said:

What have the "shareholders" been told since buying their "shares" in the club?

Not much 

[The Future is League]

31 minutes ago, Charlie said:

Not much 

So no news of any potential new buyers then?

[Charlie]

12 minutes ago, The Future is League said:

So no news of any potential new buyers then?

There’s apparently 3 different groups but the club has signed nda so there not much info. Expect to be sorted by February according to some jernos 

[The Future is League]

3 minutes ago, Charlie said:

There’s apparently 3 different groups but the club has signed nda so there not much info. Expect to be sorted by February according to some jernos 

It would certainly interesting to find out who the interested parties are.

Who ever they are they have a huge task on their hands, and will need plenty of time and money.

[sweaty craiq]

1 hour ago, Charlie said:

There’s apparently 3 different groups but the club has signed nda so there not much info. Expect to be sorted by February according to some jernos 

That’s a bit late to stop the exodus !

[Charlie]

8 hours ago, sweaty craiq said:

That’s a bit late to stop the exodus !

Depends if the rfl give them time. They don’t need 700 right now it’s a financial prediction  going forward 

Edited December 16, 2024 by Charlie

[sweaty craiq]

13 minutes ago, Charlie said:

Depends if the rfl give them time. They don’t need 700 right now it’s a financial prediction  going forward 

They needed 500k now, so that ain’t going improve by magic if it went on first salary and HmRC 

[Charlie]

3 minutes ago, sweaty craiq said:

They needed 500k now, so that ain’t going improve by magic if it went on first salary and HmRC 

They don’t though the 500k was to see them through the off season. This hmrc stuff is just ###### 

[sweaty craiq]

9 minutes ago, Charlie said:

They don’t though the 500k was to see them through the off season. This hmrc stuff is just ###### 

The off season is when most clubs are at their richest with sponsorship season tickets and merchandise

[phiggins]

27 minutes ago, Charlie said:

Depends if the rfl give them time. They don’t need 700 right now it’s a financial prediction  going forward 

It won't be the rfl dictating the timeframe, it will be the cashflow. Seems there's a predicted 700k operating loss for the year, a new rental agreement will reduce that but seems unlikely it will eradicate it. So that means there will come a point when costs can't be paid unless something changes. 

Carter will be the least of your worries in this scenario, if there's a business restructuring specialists also involved, they will be all over it.

[dboy]

4 minutes ago, phiggins said:

It won't be the rfl dictating the timeframe, it will be the cashflow. Seems there's a predicted 700k operating loss for the year, a new rental agreement will reduce that but seems unlikely it will eradicate it. So that means there will come a point when costs can't be paid unless something changes. 

Carter will be the least of your worries in this scenario, if there's a business restructuring specialists also involved, they will be all over it.

A new rental agreement MAY reduce that, but don't forget SRD also fail to pay £150k per year towards their rent (1/3), if they had to pay that, their shortfall is £850k. That's a mindboggling figure.

I really don't see how a new deal rectify this. They say they will benefit from F&B - but then surely the council who own the ground will expect full rent (though that will hopefully be less than the ridiculous amount the Peel led SMC were charging).

Then there's the issue that SRD are secondary tenants - Sale will have to be given the same terms as SRD.

This could all end with the council being in a very tricky place.

[Charlie]

25 minutes ago, sweaty craiq said:

The off season is when most clubs are at their richest with sponsorship season tickets and merchandise

Believe it or not it really isn’t and a few club officials have said the same 

[Charlie]

12 minutes ago, phiggins said:

It won't be the rfl dictating the timeframe, it will be the cashflow. Seems there's a predicted 700k operating loss for the year, a new rental agreement will reduce that but seems unlikely it will eradicate it. So that means there will come a point when costs can't be paid unless something changes. 

Carter will be the least of your worries in this scenario, if there's a business restructuring specialists also involved, they will be all over it.

Carter is no longer involved he was just there as a favour to the rfl 

[Charlie]

3 minutes ago, dboy said:

A new rental agreement MAY reduce that, but don't forget SRD also fail to pay £150k per year towards their rent (1/3), if they had to pay that, their shortfall is £850k. That's a mindboggling figure.

I really don't see how a new deal rectify this. They say they will benefit from F&B - but then surely the council who own the ground will expect full rent (though that will hopefully be less than the ridiculous amount the Peel led SMC were charging).

Then there's the issue that SRD are secondary tenants - Sale will have to be given the same terms as SRD.

This could all end with the council being in a very tricky place.

There’s a lot more to it. I recommend reading Gary carter’s reports 

[Dullish Mood]

Give Salford’s “license” to Goole, sorted.

[phiggins]

19 minutes ago, dboy said:

A new rental agreement MAY reduce that, but don't forget SRD also fail to pay £150k per year towards their rent (1/3), if they had to pay that, their shortfall is £850k. That's a mindboggling figure.

I'd imagine the assessment accounted for the full amount due, rather than the amount likely to be paid.

[Click]

20 minutes ago, Dullish Mood said:

Give Salford’s “license” to Goole, sorted.

Don't think Goole need 2.

[Harry Stottle]

14 hours ago, RS said:

Possibly but they still come at a cost. The point I was making was to save 400k you’d have to release 600k of cap players as it would cost circa 200k just to put semi competent players back in the squad to ensure you turned 17 out. 

I am not sure but you may well know, if a SL player goes out on an extended loan or DR does the parent club pay all or any part of his wages to the club they will be 'guesting' for?

[dboy]

2 hours ago, Charlie said:

There’s a lot more to it. I recommend reading Gary carter’s reports 

I do.

He reports nothing contradictory.