Salford financial issues(again…)

[Impartial Observer]

14 minutes ago, Charlie said:

A lot of fans Ino are saying there done with the sport 

But they never are. 

[RigbyLuger]

Where do the "share holders" stand in regards to any takeover bid?

[dboy]

1 minute ago, Red Willow said:

Every single year some drama. If the club can't pay the wages for a season they have no right to sign them. Hoping the council tip up again is no way to run a business.

Been a fan a very long time but it's drama after drama.

 

I won't "like" your post, cos that seems wrong, but every word you've put is spot on.

[Charlie]

3 minutes ago, Impartial Observer said:

But they never are. 

Given Ino a few who we’re waiting to see what happens to buy tickets now won’t there’s definitely some. And tbh the drama is just boring 

[Worzel]

28 minutes ago, Martyn Sadler said:

Wednesday 15th January 2025
Club Statement: the truth behind the rumours
Over recent months, there has been repeated media speculation on the Club’s financial position. We have purposefully maintained a level of silence since our last statement, not out of avoidance, but out of necessity due to the sensitive nature of our ongoing discussions with potential investors. Our discretion has been to maintain and ensure the integrity of those discussions, bound by Non-Disclosure Agreements, and to protect our Club, players and staff.
As the position stands, contrary to what has been reported, investor negotiations continued over the weekend as part of the lengthy, rigorous process to secure a takeover for the Club. This is still live and we are working to expediate, details of which we can’t disclose given the Non-Disclosure Agreement in place. However, the Club has been directed to sell players without delay; the position is the RFL have issued a sustainability cap of £1.2 million and until we reach that, we are now prohibited from registering players for the upcoming season.
Distribution Advance
We are grateful for RL Commercial’s agreement to provide an advance on our allocated 2025 distribution. This was a welcome bridge in December 24 towards achieving longer- term stability, whilst investor discussions continued at the Club and the Councils’ acquisition of the stadium was finalised.
The terms of receiving the advancement were that the Club be placed under ‘special measures’ requiring a reduction in overheads of £800,000. We were not given a clear timeline for compliance on required expenditure reductions, therefore the Club took the decision to hold our position for the short-term while investor negotiations are ongoing. During this time the Club has received offers for a number of players, none of whom have been available for sale until today.
It is important to add that the advancement monies were held by RL Commercial and payments administered directly from them – the Club have never been given the funds to manage directly.
  
Salford Community Stadium
On December 13th 24, Salford City Council finally announced that it had completed the acquisition of the stadium. Given the proximity to the festive period, we have been unable to contact the council to secure an immediate meeting and ascertain next steps in order to maximise Club revenue opportunities.
Prior to acquisition, one investor negotiation collapsed due to the investment risk of not having any confirmed position from the Council on when the stadium acquisition would be finalised; an example of the delicate negotiating position we find ourselves in.
Concurrently we have also been in a holding pattern with the Giant Advertising screen development alongside the M60 motorway, another critical enterprise and important contributory factor to drive the Club forwards towards financial stability. This project has been in abeyance for approximately 12-months awaiting the acquisition of the stadium. Additional income was due to be unlocked once the stadium deal had completed, which had been built into Club revenue planning.
As the local authority return from the festive recess, we are hopeful a meeting with the Council takes place sooner rather than later so we can move things forward.
Salford City Council Community Funding
In March 24 it was suggested by Salford City Council the Club could receive a subsidy control grant to support Rugby League and the rugby development pathway in the City of Salford and Greater Manchester. This is akin to other Salford community entities who have received similar funding i.e. The Lowry and RHS Bridgewater. The Club were notified in July 24 of a delay and again in September 24 with a further delay until November 24, again impacting financial forecasting.
In November 24, Salford City Council advised that the subsidy control grant was not available due to funding shortfalls elsewhere, the impact of which was that the Club had already committed funds to player and staff recruitment and paid for pre-season preparations including a warm weather camp in Portugal. Effectively, these projected funds had already been allocated.
To conclude, we believe we have acted in the best interests of the Club, players, staff and our fans, given the complex situation we find ourselves in with multiple dynamics in play. We empathise and understand the frustration of our fans and are deeply sorry to reach this position. Thank you for your continued patience and support.
Our focus remains in working to explore all avenues possible for the long-term stability and success of Salford Red Devils. Immediate next steps are to continue the potential takeover
   
process to secure investment as soon as possible, whilst now simultaneously selling players to meet RL Commercial regulations.
 

The lack of humility and self-awareness in this statement is absolutely staggering.

1. The implied criticism of RL Commercial, when given their track record it is quite right that the £500k is held centrally and released on-demand rather than being given to the club in full immediately.

2. The complacency in not working to reduce their player cost base immediately, and instead putting change “on hold” in the hope that the new investor would arrive on time.

3. The brass neck to imply that it is the Council’s fault for not being able to deliver bridge finance (after all the Council has already done), and the idiocy of building a budget and spending real money on the assumption that it would arrive at all, let alone arrive on time.

I’m sorry, I have every sympathy for the Salford fans and I appreciate the landscape their Board was trying to navigate, but in all the areas where they had control or real influence they have made immature, unprofessional and frankly negligent decisions. It’s just not on.

Genuinely Walter Mitty levels of behaviour. 

[Chrispmartha]

Feel really sorry for the Salford fans, and the players for that matter.

 

[bromleybulldog]

Time for the RFL or SL to step in and say enough is enough.  The Salford statement is just another time wasting ploy to defer action. Salford have to be demoted to the Championship and a replacement club  (Toulouse or Bradford??) offered their  place instead with a no relegation clause for next season to reflect the situation that it's so late in the team building process There is no way Salford are going to be a competitive team in 2025

[Chris22]

Salford scored 2.15 out of 4.5 for finances in this year's grading. The same as its indicative score in 2023.

This seems high given they were in special measures months later.

[DG70]

Real shame for the fans and "shareholders" who have been led on royally down the garden path, a magnificent example of how not to run either a SL club or a business.

[Poptart]

Sad day for the fans and some employees who will probably lose their jobs.

But it needs to be done to bring them back in line as a club.

[JohnM]

Gemini version:

This statement from Salford Red Devils outlines the club's current financial difficulties and the steps they are taking to address them. Here's a breakdown:

Key Issues:

Financial Constraints:

Sustainability Cap: The Rugby Football League (RFL) has imposed a £1.2 million sustainability cap on the club, limiting player spending.

Forced Player Sales: To meet the cap, the club is now required to sell players immediately.

Delayed Investment: Ongoing negotiations with potential investors have not yet resulted in a successful takeover.

Funding Shortfalls: A promised subsidy control grant from Salford City Council was not available, impacting the club's finances.

Stadium Ownership:

The acquisition of the Salford Community Stadium by Salford City Council has been finalized, but the club is yet to meet with the council to discuss future revenue opportunities.

Delayed stadium acquisition previously hindered investor negotiations.

Lack of Transparency:

The club has maintained silence on financial matters due to ongoing investor discussions and Non-Disclosure Agreements.

Actions Taken:

Distribution Advance: The club received an advance on its 2025 distribution from RL Commercial, but this came with conditions, including reducing overheads.

Player Sales: The club is now actively selling players to comply with the RFL's sustainability cap.

Investor Negotiations: The club is continuing to actively pursue a takeover deal.

Seeking Council Collaboration: The club is seeking a meeting with Salford City Council to discuss stadium revenue opportunities and potential future support.

Impact on the Club:

Registration Restrictions: The club is currently prohibited from registering new players for the upcoming season until they meet the sustainability cap.

Financial Uncertainty: The lack of a stable investment deal and ongoing financial challenges create significant uncertainty for the club's future.

Fan Frustration: The club acknowledges and apologizes for the frustration experienced by fans.

Overall:

The statement highlights the complex and challenging situation facing Salford Red Devils. The club is navigating multiple financial hurdles while simultaneously seeking a long-term solution through investment and improved stadium utilization. The success of these efforts will determine the club's future stability and competitiveness.

Disclaimer: This is a summary based on the provided club statement. It may not include all details or nuances.

[Poptart]

If someone finds some money, the best investment they can make is getting Michael Carter to run the finances for a while, or someone like him.

He won't be popular but he'll save the club and get it living to its means again.

[Les Tonks Sidestep]

3 minutes ago, Chris22 said:

Salford scored 2.15 out of 4.5 for finances in this year's grading. The same as its indicative score in 2023.

This seems high given they were in special measures months later.

Because the bands are so wide in the financial pillar that it doesn't really tell you anything.

[Charlie]

2 minutes ago, Poptart said:

If someone finds some money, the best investment they can make is getting Michael Carter to run the finances for a while, or someone like him.

He won't be popular but he'll save the club and get it living to its means again.

They need someone with a lot more skill than him. Probably a miracle worker 

[Archie Gordon]

The club was in special measures this time last year with pretty much the same issues as now. 

How did Salford get out of special measures during 2024?

How were they awarded an academy licence (estimated running costs £200-400k)?

How were they given any stadium points in the gradings when it sounds as if they lacked (and still lack!) a deal to play anywhere in 2025?

The major story to me seems to be an extraordinary governance failing.

[Red Willow]

33 minutes ago, RigbyLuger said:

Where do the "share holders" stand in regards to any takeover bid?

Same place as before. It isn't a share we knew that last year. Fans of other clubs have made it seem most fans didn't know it at the time.

[LeeF]

19 minutes ago, Chris22 said:

Salford scored 2.15 out of 4.5 for finances in this year's grading. The same as its indicative score in 2023.

This seems high given they were in special measures months later.

As posted earlier it is based on the accounts to the end of November 2023. A lot has happened/ not happened since that date with regards to their finances. 
 

Also, under the previous criteria they would have been ranked 4th

[Worzel]

47 minutes ago, bromleybulldog said:

Time for the RFL or SL to step in and say enough is enough.  The Salford statement is just another time wasting ploy to defer action. Salford have to be demoted to the Championship and a replacement club  (Toulouse or Bradford??) offered their  place instead with a no relegation clause for next season to reflect the situation that it's so late in the team building process There is no way Salford are going to be a competitive team in 2025

That’s actually not a bad idea at least as a worst-case option, definitely better than Salford dropping out mid-season. The challenge will be less team-building (many of Salford’s players will be available) and more around justifying the team chosen and financing the season at short notice I think. 

[Worzel]

39 minutes ago, Archie Gordon said:

The club was in special measures this time last year with pretty much the same issues as now. 

How did Salford get out of special measures during 2024?

How were they awarded an academy licence (estimated running costs £200-400k)?

How were they given any stadium points in the gradings when it sounds as if they lacked (and still lack!) a deal to play anywhere in 2025?

The major story to me seems to be an extraordinary governance failing.

I agree on the Academy licence point. They should have been asked for proof of funding for it, and obviously refused (given there wasn’t any)

[Pie tries]

1 hour ago, Impartial Observer said:

But they never are. 

Not that many - just a couple of knee jerk comments.

Been here before, though this feels very different. All harks back to botched stadium move. Ironic now that new ownership will open income streams, maybe next year…

Salford can easily survive this - though their season will be about not finishing bottom.

Worth remembering SRD have done some good stuff in recent years, set up academy, reserves, women’s team, wheel chair (I believe) - all on a shoestring.

Many others without sugar daddy would be in this position.

If (if) had a sugar daddy and stadium deal done earlier things would be different.

Ride out the storm, sell Sneyd et al, trust in youth, get some bargains (from PNG !) and bounce straight back…

 

 

[Charlie]

Just now, Pie tries said:

Not that many - just a couple of knee jerk comments.

Been here before, though this feels very different. All harks back to botched stadium move. Ironic now that new ownership will open income streams, maybe next year…

Salford can easily survive this - though their season will be about not finishing bottom.

Worth remembering SRD have done some good stuff in recent years, set up academy, reserves, women’s team, wheel chair (I believe) - all on a shoestring.

Many others without sugar daddy would be in this position.

If (if) had a sugar daddy and stadium deal done earlier things would be different.

Ride out the storm, sell Sneyd et al, trust in youth, get some bargains (from PNG !) and bounce straight back…

 

 

It won’t matter if we finish 11th we are going down, that’s how img works 

[binosh]

41 minutes ago, Poptart said:

If someone finds some money, the best investment they can make is getting Michael Carter to run the finances for a while, or someone like him.

He won't be popular but he'll save the club and get it living to its means 

Hopefully new owners can sort someone like that 

[Archie Gordon]

2 minutes ago, Charlie said:

It won’t matter if we finish 11th we are going down, that’s how img works 

Yeah.

Salford are being set up as the 2025 version of London. Crazy that we find ourselves here a few weeks out from the start of the season.

[Charlie]

5 minutes ago, Archie Gordon said:

Yeah.

Salford are being set up as the 2025 version of London. Crazy that we find ourselves here a few weeks out from the start of the season.

Think they will be a lot worse than London 

[Impartial Observer]

10 minutes ago, Pie tries said:

 

Worth remembering SRD have done some good stuff in recent years, set up academy, reserves, women’s team, wheel chair (I believe) - 

 

 

 

The majority of the reserve players are community players who are not being paid. They receive funding from the rfl to run women's, wheelchair, pdrl and ldrl if they have them