Salford financial issues(again…)

[dboy]

4 minutes ago, Angelic Cynic said:

Salford only requested money that was duly theirs,slightly earlier.

You have questioned Salford signing players.

 

I expect to be working for my current employer for the next 3 years. If I ask for my salary in advance - I mean, it will be duly mine anyway - what do you think they will say?

Yes, I've questioned them signing big-name players - in the context that they knew they didn't have the funds (possibly a short term issue), and that they pay these players despite not being able (or rather choosing to), pay their bills.

It's not an unreasonable concern.

[RigbyLuger]

31 minutes ago, PREPOSTEROUS said:

I think what narked off everyone regarding Bradford was the clandestine way everything was handled and the BS reasoning that followed (predatory developers and iconic stadiums). This has been pretty much in the openand yes I think the correct call has been made. 

Especially with the regime at the RFL then, and the one at the Bulls now. But that's a kettle of fish no-one wants to boil.

[RigbyLuger]

37 minutes ago, PREPOSTEROUS said:

I think what narked off everyone regarding Bradford was the clandestine way everything was handled and the BS reasoning that followed (predatory developers and iconic stadiums). This has been pretty much in the openand yes I think the correct call has been made. 

Especially with the regime at the RFL then, and the one at the Bulls now. But that's a kettle of fish no-one wants to boil.

[Wollo Wollo Wayoo]

2 hours ago, burke said:

As a Wakefield fan I am embarrassed by the vitriol spouted on this thread by dboy. Trinity fans know how it feels to support a club lurching from one financial issue to another, to support a club that year after year defies the odds. I admire the tenacity of Salford. I know the many Trinity fans I speak with wish Salford well, without Matt Ellis we would not have a club. To revel in and gloat at Salford`s predicament is low and shows a total lack of sportsmanship. 

Forget Matt Ellis and think about Michael Carter having to balance the books back in 2013 by selling Kyle Amor, Tim Smith and Ben Cockayne. Few others released like Kyle Wood and Paul Aiton. 

Coincidently £400k was banded around as the shortfall iirc. Why aren't Salford pursuing a similar strategy?

[LeytherRob]

4 minutes ago, Wollo Wollo Wayoo said:

Forget Matt Ellis and think about Michael Carter having to balance the books back in 2013 by selling Kyle Amor, Tim Smith and Ben Cockayne. Few others released like Kyle Wood and Paul Aiton. 

Coincidently £400k was banded around as the shortfall iirc. Why aren't Salford pursuing a similar strategy?

Yep, it’s all well and good saying ‘we don’t want to be a selling club anymore’ but if you don’t have the sugar daddy to pay for it or 10k gates every week then tough luck because it isn’t going to happen.

[phiggins]

It's right that the clubs aren't making the call, and also right that they had a chance to air their concerns last week. It's for the governing body to decide, but if Sky money is coming in in instalments, have to wonder where this advance is coming from?

[gingerjon]

12 minutes ago, Wollo Wollo Wayoo said:

Forget Matt Ellis and think about Michael Carter having to balance the books back in 2013 by selling Kyle Amor, Tim Smith and Ben Cockayne. Few others released like Kyle Wood and Paul Aiton. 

Coincidently £400k was banded around as the shortfall iirc. Why aren't Salford pursuing a similar strategy?

Presumably this will be one of the reasons why the clubs have stepped away from decision making.

"Yes, we could advance you £500,000 but, instead, how about you give X to Wigan, Y to Saints and Z to Catalans ..."

It's for the RFL to decide if Salford need to go down that route, not the clubs who would benefit from it.

[Taffy Tiger]

1 hour ago, dboy said:

I expect to be working for my current employer for the next 3 years. If I ask for my salary in advance - I mean, it will be duly mine anyway - what do you think they will say?

Yes, I've questioned them signing big-name players - in the context that they knew they didn't have the funds (possibly a short term issue), and that they pay these players despite not being able (or rather choosing to), pay their bills.

It's not an unreasonable concern.

They would probably say 'Stop spending so much time on RL Forums and get on with your work' 

[binosh]

19 minutes ago, gingerjon said:

Presumably this will be one of the reasons why the clubs have stepped away from decision making.

"Yes, we could advance you £500,000 but, instead, how about you give X to Wigan, Y to Saints and Z to Catalans ..."

It's for the RFL to decide if Salford need to go down that route, not the clubs who would benefit from it.

And the sceptic in me says it gives clubs more time to negotiate with Salford and their players, a refusal to release players and reduce costs would reflect very badly.

[Worzel]

1 hour ago, Angelic Cynic said:

Here we have the clubs who welcomed IMG abdicating their responsibilities and allowed the RFL to decide;the same lot who permitted this - 

 

What are you on about? This is nothing to do with IMG, never was. Salford asked the clubs to make a call, the clubs have rightly said that would be inappropriate. RFL Commercial run Super League and the associated revenues, and the RFL run the game. It is their responsibility to decide.

The responsibility for the position Salford find themselves in though is, of course, wholly theirs. We've seen plenty of examples of clubs having to cut their cloth to suit their circumstances including Wakefield and Castleford recently, with inevitable performance-on-the-field consequences, but Salford for whatever reason don't seem to have chosen to do that. 

[sweaty craiq]

Pay day next Friday No money means probable breach of contract making players free agents - let’s see how willing the Salford owners are to dip into their personal cash, being so confident of how it’s a temp cash flow issue it would be risk free for them, surely

[LeytherRob]

9 minutes ago, binosh said:

And the sceptic in me says it gives clubs more time to negotiate with Salford and their players, a refusal to release players and reduce costs would reflect very badly.

This did cross my mind when the delay was announced, especially when there have been reports that agents of Salford players have been contacting clubs over the weekend. I don't think they'd get much in the way of transfer fees though if they did have to unload, SRD are all out of mid 20's stars they can get 6 figures for. 

[phiggins]

5 minutes ago, LeytherRob said:

This did cross my mind when the delay was announced, especially when there have been reports that agents of Salford players have been contacting clubs over the weekend. I don't think they'd get much in the way of transfer fees though if they did have to unload, SRD are all out of mid 20's stars they can get 6 figures for. 

My first thought was that clubs probably didn't feel comfortable nodding the advance through, nor did they want to be seen to be opposing it either, so put it on the RFL / RLCom. Though that is the right thing to do though at least, and good for Salford that there isn't a committee of 12 people making the call. 

[LeytherRob]

9 minutes ago, phiggins said:

My first thought was that clubs probably didn't feel comfortable nodding the advance through, nor did they want to be seen to be opposing it either, so put it on the RFL / RLCom. Though that is the right thing to do though at least, and good for Salford that there isn't a committee of 12 people making the call. 

That is also true, and I agree it's the ultimately correct decision that has been made. There are pros and cons to all options in any difficult situation like this.

[Taffy Tiger]

Advance by RFL approved . More details below

 

"Further to the formal request received from Salford Red Devils for an advance against their distribution entitlement, the Rugby League Commercial Board have advised the club of their support of the request. This has been granted on the condition of central involvement in and scrutiny of a more sustainable long-term trading position for Salford Red Devils. It is the responsibility of Rugby League Commercial, and not the Super League clubs, to determine the basis of distribution entitlements."

Edited November 25, 2024 by Taffy Tiger

[gingerjon]

Advance agreed: https://www.totalrl.com/rl-commercial-agree-to-offer-of-advance-of-central-distribution-for-salford-red-devils-as-super-league-club-aims-for-grade-a-in-the-future/

[Wilderspoolmemories]

From what I recall it was said on sky TV last season that the Salford salary cap spend was £1.7 million. While they did really well on the pitch despite such a low cap, are they now saying they are out of their depth at £1.7 million? 

If so maybe they need to take short term backward steps to protect their long term future.

It might not be easy to do but maybe drop down a division?  Look for a new more affordable home in or around Salford, and do what they can to improve attendances and sponsorship. Maybe the club need to tell their fans that even if they won their lower league grand final in 2026 or whenever, they would not be in a position to be promoted to SL that year? 

Some might think my suggestions daft or OTT, but sometimes in life you have to take two steps back, to be able to take three forwards in the future.

[Charlie]

Good news for the club and fans, I’m hoping the bored really sort themselves out and get these deals sorted, very stressful being a Salford fan 

[Worzel]

16 minutes ago, Taffy Tiger said:

Advance by RFL approved . More details below

 

"Further to the formal request received from Salford Red Devils for an advance against their distribution entitlement, the Rugby League Commercial Board have advised the club of their support of the request. This has been granted on the condition of central involvement in and scrutiny of a more sustainable long-term trading position for Salford Red Devils. It is the responsibility of Rugby League Commercial, and not the Super League clubs, to determine the basis of distribution entitlements."

This is the right decision. RL Commercial should probably insist on a Board seat, and veto on major expendutures until such time as the club is properly capitalised. We should have some sort of "special measures" system for clubs who are needing central support.

[Trojan Horse]

Just a thought…

in November 2023 weren’t Salford placed into financial special measures by the RFL who has to sign off recruitment for the Salford club? 
 

I don’t actually ever recall an announcement they were out of special measures.

Does this mean that this is in part the fault of the RFL? 

It doesn’t give me much confidence now the RFL are back involved. 

Though I do think it’s the correct course. So long as they are strictly monitored and managed appropriately (something other clubs may not have had the benefit of when facing financial shortfall recently like Fax etc). 

Must be a relief for Salford fans. Good for them. 

Edited November 25, 2024 by Trojan Horse

[gingerjon]

2 minutes ago, Worzel said:

This is the right decision. RL Commercial should probably insist on a Board seat, and veto on major expendutures until such time as the club is properly capitalised. We should have some sort of "special measures" system for clubs who are needing central support.

It's in the Operational Rules.

[Segovia Carpet]

The news must be so disappointing for @dboy, the majority of Leigh folk on here and others on here wishing the end of a great club like Salford.

I did say it was a short term cash flow problem  - Mr King has been totally honest about the situation and if the RFL did not accept the position the club would have spoken to their Bankers to seek a temporary advance against the Sky monies to come.  Only difference being is that they would have had to pay interest.

Time to move on and we will be looking forward to visiting Belle Vue (or whatever name it will be in 2025) next season.

[The Masked Poster]

1 minute ago, Segovia Carpet said:

The news must be so disappointing for @dboy, the majority of Leigh folk on here and others on here wishing the end of a great club like Salford.

I did say it was a short term cash flow problem  - Mr King has been totally honest about the situation and if the RFL did not accept the position the club would have spoken to their Bankers to seek a temporary advance against the Sky monies to come.  Only difference being is that they would have had to pay interest.

Time to move on and we will be looking forward to visiting Belle Vue (or whatever name it will be in 2025) next season.

Right, so this is the end of the matter? Nice one 

[Agbrigg]

27 minutes ago, Segovia Carpet said:

 

Time to move on and we will be looking forward to visiting Belle Vue (or whatever name it will be in 2025) next season.

OI !!! just cos we did a bucket collection for Whitehaven and donated match day ticket sales ,don't come expecting the same treatment 

Edited November 25, 2024 by Agbrigg

[Dave T]

37 minutes ago, Segovia Carpet said:

The news must be so disappointing for @dboy, the majority of Leigh folk on here and others on here wishing the end of a great club like Salford.

I did say it was a short term cash flow problem  - Mr King has been totally honest about the situation and if the RFL did not accept the position the club would have spoken to their Bankers to seek a temporary advance against the Sky monies to come.  Only difference being is that they would have had to pay interest.

Time to move on and we will be looking forward to visiting Belle Vue (or whatever name it will be in 2025) next season.

Nah. This isn't just a free loan so they can avoid paying the bank interest.