Salford financial issues(again…)

[lucky 7]

Another one leaves, and I expect more to follow

https://www.bbc.com/sport/rugby-league/articles/cjd3gen3xzmo

 

[LeytherRob]

8 hours ago, lucky 7 said:

Another one leaves, and I expect more to follow

https://www.bbc.com/sport/rugby-league/articles/cjd3gen3xzmo

 

Gary Carter all but confirmed in one of his articles that Tim Lafai will be heading back to Oz to be with his family, so that's 3 players leaving with 1-13 squad numbers. Nene McDonald is probably a given too. 

[LeytherRob]

A planning application has gone in on some of the stadium land but it doesn't appear to be the prospective new owners - plans are for 2 industrial units that will on one of the areas currently used for car parking. I've done a crude outline on google maps for the location but you can see all the plan docs here (Planning Application: PA/2025/0383). If you go on files, page 2 there are some CGI images.

 

Not sure what impact this will have on the new owners plans for surrounding stadium land, but it does only leave room behind the north stand and there's not a great deal of room to be putting a 5000-seat arena AND a hotel (and a giant billboard?). I also don't really think it helps drive the idea of making this site an entertainment hub if it keeps getting increasingly sandwiched into an industrial estate - it won't exactly help with the casual footfall. Not to mention a significant chunk of carparking will be lost for gameday.

[dboy]

17 hours ago, Ethereal said:

That says the council will be paid 5m over 10 years for allowing the arch to be built, rather than it generating that much income.

I'd suggest that the company could be expecting to make their money back in the long-term (since the advertising will continue beyond 10 years) rather than simply saying that it must be generating the full fee over the 10 years.

It's even more pertinent to understand that what advertising looked like 10 years ago, is not what advertising looks like today.

It's massively social media driven.

The mega-jumbo-tron won't earn anything like the numbers promised.

It's a dead duck and a deliberate mis-direction from the club.

It's taking focus away from the actual problem, which this does nothing to solve.

Smoke and mirrors.

[phiggins]

1 hour ago, LeytherRob said:

A planning application has gone in on some of the stadium land but it doesn't appear to be the prospective new owners - plans are for 2 industrial units that will on one of the areas currently used for car parking. I've done a crude outline on google maps for the location but you can see all the plan docs here (Planning Application: PA/2025/0383). If you go on files, page 2 there are some CGI images.

 

Not sure what impact this will have on the new owners plans for surrounding stadium land, but it does only leave room behind the north stand and there's not a great deal of room to be putting a 5000-seat arena AND a hotel (and a giant billboard?). I also don't really think it helps drive the idea of making this site an entertainment hub if it keeps getting increasingly sandwiched into an industrial estate - it won't exactly help with the casual footfall. Not to mention a significant chunk of carparking will be lost for gameday.

I do wonder if the recent announcement of regeneration around Old Trafford might affect the feasibility of anything other than industrial parks going on that land as well? 

[LeytherRob]

33 minutes ago, phiggins said:

I do wonder if the recent announcement of regeneration around Old Trafford might affect the feasibility of anything other than industrial parks going on that land as well? 

To be honest I think it's less the Old Trafford project and more the location from the start of the stadium. It's so close geographically to the Trafford Centre, but it's basically hidden away across the canal whereas the rest of the TC site is very much self-contained and it's a lengthy walk or a bus away. It's also close to Trafford Park but cut off by the Trafford Centre to the rest of the main industrial park. It's penned in by the canal, Barton Aerodrome, the wastewater processing plant and a few industrial units so there's no chance of wider development of the area to add to the site.

I think there is a reason that the stadium has been there nearly 15 years now and no one has snapped the councils arm off for the surrounding land, especially considering Manchester is probably the fastest developing city in the country right now with the skyline almost unrecognisable from even 10-15 years ago.

 

[lucky 7]

Kallum Watkins wants answers

https://www.thesun.co.uk/sport/33937585/rugby-super-league-salford-money-players-takeover/

[dkw]

Its very telling that Ive not seen a single Salford fan call out any of the leaving players, they all understand and also feel empathy with them. Rarely does an entire fanbase accept a player leaving for any reason.,

[Henson Park Old Firm]

19 minutes ago, dkw said:

Its very telling that Ive not seen a single Salford fan call out any of the leaving players, they all understand and also feel empathy with them. Rarely does an entire fanbase accept a player leaving for any reason.,

Look what happened to Michael  Owen

[dboy]

4 hours ago, lucky 7 said:

Kallum Watkins wants answers

https://www.thesun.co.uk/sport/33937585/rugby-super-league-salford-money-players-takeover/

What does this even mean - "Heads of terms being agreed for the stadium and land with the city’s council is likely to unlock a larger pot of funding, believed to be about £7 million which should pay off debts."

Can anyone explain how Swiss Tony taking over the ground generates a £7m funding pot?

Where is this mysterious money coming from?

[LeeF]

14 minutes ago, dboy said:

What does this even mean - "Heads of terms being agreed for the stadium and land with the city’s council is likely to unlock a larger pot of funding, believed to be about £7 million which should pay off debts."

Can anyone explain how Swiss Tony taking over the ground generates a £7m funding pot?

Where is this mysterious money coming from?

It would likely have to be some form of cash release against the value of the land and assets where some of it goes into the club to ensure the deal goes ahead. 
 

As said before the club isn’t anyone’s priority outside the fans of the club & the wider game base. The potential purchasers are only interested in what they can make from the land and developing it would be my take. 
 

Mind you I suppose there is always the advertising board. That should throw off a £70m funding pot if we believe all the numbers

[dboy]

1 hour ago, LeeF said:

It would likely have to be some form of cash release against the value of the land and assets where some of it goes into the club to ensure the deal goes ahead. 
 

Understood, but the land doesn't "have" money - it can only be used as an asset to mortgage against.

Is Dario gonna take a massive loan against the land to simply give to SRD? If so, who pays it off? Dario or SRD?

This "£7m funding pot" doesn't exist on it's own.

[LeeF]

18 minutes ago, dboy said:

Understood, but the land doesn't "have" money - it can only be used as an asset to mortgage against.

Is Dario gonna take a massive loan against the land to simply give to SRD? If so, who pays it off? Dario or SRD?

This "£7m funding pot" doesn't exist on it's own.

I 100% get what you are saying and I think we have been pretty close with our thoughts throughout this saga. The problem here is the vague language used in the article.  It happens a lot when non financial people either report or speak about financial things.
  
It’s a guess, but the evidence currently leads to the conclusion that any deal with the land, which is what Dario is wanting, is being tied into sorting out the debts at Salford. Presumably to try and get the council off the hook and to retain a “community asset”.

The prospective purchasers always seemed a strange fit with having no previous interest in RL and so it has come to fruition 

[DoubleD]

1 hour ago, dboy said:

Understood, but the land doesn't "have" money - it can only be used as an asset to mortgage against.

Is Dario gonna take a massive loan against the land to simply give to SRD? If so, who pays it off? Dario or SRD?

This "£7m funding pot" doesn't exist on it's own.

It’ll be asset backed finance, so yes a loan against the land. It will release funds to enable debts of the Red Devils to be paid off and unlock development of the land. Still leaves question marks over their longevity of interest in SRD as they are loss making. I would expect they will be separate limited companies unless the council insist it remains under SRD ownership 

[dboy]

And just the question of who services the loan.

A cynic might say they do a "Glazers" and mortgage the land to the hilt, underwritten by SRD, which then dies with the debts, whilst the land ensconced in a series of shell companies that Dario then owns. 

I would never be that cynical.

[LeeF]

1 minute ago, dboy said:

And just the question of who services the loan.

A cynic might say they do a "Glazers" and mortgage the land to the hilt, underwritten by SRD, which then dies with the debts, whilst the land ensconced in a series of shell companies that Dario then owns. 

I would never be that cynical.

In theory, or the prospectus, the income generated by the new assets eg the screen; sale of the assets or a refinance of the assets. In practice I wouldn’t like to guess as next to nothing is known about these guys with the little which is known not good

[dboy]

Already covered the screen. It will not generate the level of income suggested.

 

[DoubleD]

2 minutes ago, dboy said:

And just the question of who services the loan.

A cynic might say they do a "Glazers" and mortgage the land to the hilt, underwritten by SRD, which then dies with the debts, whilst the land ensconced in a series of shell companies that Dario then owns. 

I would never be that cynical.

There’s always that risk but you’d hope the council will have watertight contracts in place which protect SRD. It doesn’t look like a long term solution for the SRD but new ownership should at least put them on a better footing and hopefully enable someone else to take them on in the coming years 

[Tommygilf]

24 minutes ago, DoubleD said:

There’s always that risk but you’d hope the council will have watertight contracts in place which protect SRD. It doesn’t look like a long term solution for the SRD but new ownership should at least put them on a better footing and hopefully enable someone else to take them on in the coming years 

If it clears the debts and brings the stadium into their control it surely makes them a more attractive proposition for a prospective buyer. That local fella with a bit of money was being talked up last year for example. The debts and ground issue might have put someone of more modest levels of RL owner wealth off.

[WN83]

Extremely worrying position to be in from a Salford fans/players/officials POV, when you're owners clearly have absolutely no interest in the club itself. It just feels like this can't end well, even if some decent money eventually lands to cover them in the short/medium term. 

[RigbyLuger]

14 minutes ago, WN83 said:

Extremely worrying position to be in from a Salford fans/players/officials POV, when you're owners clearly have absolutely no interest in the club itself. It just feels like this can't end well, even if some decent money eventually lands to cover them in the short/medium term. 

Do another share issue to buy the club?

[preid]

18 minutes ago, WN83 said:

Extremely worrying position to be in from a Salford fans/players/officials POV, when you're owners clearly have absolutely no interest in the club itself. It just feels like this can't end well, even if some decent money eventually lands to cover them in the short/medium term. 

I would say that the RFL and SL are just hoping that they will complete the season. If they sell one or at most two more players they should be down to £1.2 million cap anyway so with future Sky money that outcome should be feasible. They may well still finish above Huddersfield. If the takeover did go through properly then maybe they could maintain enough IMG points though it seems likely that Toulouse will pass them out and Huddersfield will stay ahead.

If the takeover falls through then at season's end Salford will either be demoted or cease to exist in their current form. Portents are that TO and LB will both be in SL within 2 to 3 years. Whether that would be as part of 12 or 14 remains to be seen.

[Stanley30]

7 hours ago, Henson Park Old Firm said:

Look what happened to Michael  Owen

Was forced to watch rocky and cool runnings?

Edited March 21 by Stanley30

[lucky 7]

Nothings improving.

https://www.theguardian.com/sport/2025/mar/21/no-wages-little-clarity-salford-red-devils-super-league-rugby-league

[Derwent]

10 hours ago, lucky 7 said:

Nothings improving.

https://www.theguardian.com/sport/2025/mar/21/no-wages-little-clarity-salford-red-devils-super-league-rugby-league

Buying SL for £200m