SALFORD council has been criticised for giving “hidden” loans to struggling rugby league side Swinton Lions.
The council, according to the Manchester Evening News, paid the Lions £100,000 back in March after being alerted to the club’s “cash flow” issues.
But, Salford Conservative Group said it was not told about the payment and that this loan, which has yet to be paid back, was never made public
However, Salford Council say the loan was made in compliance with the authority’s decision-making processes and the relevant legislation – and that a second £100,000 loan is being prepared to be given to the Lions.
Leader of the Salford Conservative Group, Councillor Robin Garrido, has slammed the issue.
“We were not notified of the first loan and we should have been in my opinion. Why was it being hidden? There was no decision notice. The normal protocol is that there is a decision notice even if technically it is not needed,” Councillor Robin Garrido told the Manchester Evening News.
“Then we come to the decision notice on Friday. Normally, the chief finance officer and chief officer would have to sign it off but this has not been. It’s been signed off by the City Mayor.
“We have a number of concerns about this. One is that decisions are being made without the knowledge of the official opposition or other members. That’s a concern we need to be looking into.
“Another is, should we have given Swinton Lions the second £100,000? I can’t see how we can agree to anything of that kind until we have some firm guarantees that the previous money is going to be repaid.”
Stephen Wild, Swinton’s chief executive, has hit back, insisting that the loans are necessary to help the Lions become self-sufficient.
“We were fully aware back in 2021/2022, whilst in the process of constructing and delivering a post-Covid recovery plan, coupled alongside a sudden drop of over £150,000 in annual central funding from our sport’s governing body, that we would experience cash flow issues over the following couple of years,” Wild told the Manchester Evening News.
“We discussed these matters with Salford City Council who extended the club an initial loan of £100,000. I emphasise that this was a commercial loan repayable with interest, and was underwritten by personal director guarantees.
“A further loan of a similar amount with guarantees has subsequently been discussed, as well as a revised repayment plan which would cover both tranches.
“No monies have been gifted to Swinton Lions RLFC. However, these loans are vital to facilitate ongoing internal restructuring and economies which will enable the club to become self-sufficient, whilst also indirectly supporting the wonderful work of our Lions’ Foundation, which earns significant socio economic benefits for the town of Swinton itself, but also for the wider city of Salford.
“We are extremely grateful to Salford City Council for their understanding of our situation, and recognition that as one of the world’s oldest rugby league clubs the Lions are an important local historic institution.
“There is also recognition here for our Foundation which in a short space of time has engaged 30,000 people and created an estimated £2 million worth of social benefit to the city.”
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