SALFORD RED DEVILS have been given a major blow as the local council have ended all negotiations over a purchase of their stadium.
The club have been in talks with Salford City Council, who took full ownership of the Salford Community Stadium last year.
But city mayor Paul Dennett and deputy mayor Jack Youd said in a statement that they had formally ended all negotiations with Jacobsen Management – the company of Saia Kalahai, one those involved in the Salford takeover – regarding the future of the venue.
The council statement read: “It has not been possible for the council to progress negotiations and carry out a detailed due diligence exercise as required in a timely manner.
“We understand how difficult and uncertain this situation has been for supporters, staff, players and everyone connected to Salford Red Devils. We share your frustration and concern. Like you, we care deeply about the future of the club and the role rugby league plays in Salford’s sporting identity and community life.
“The council stepped in to acquire full ownership of the stadium to help secure that future. We remain committed to working with all our stadium tenants and partners to ensure the stadium delivers for the whole of our city – and to ensuring Salford Red Devils have a stable and sustainable home.”
It follows the news this morning that the club has been hit with formal legal action by HMRC over unpaid bills.
According to City AM, the tax authorities have filed a winding-up petition order against Salford City Reds (2013) Limited – the operating company for the Red Devils club.
A winding-up petition is a profound statement of intent by a creditor to shut down a company due to unpaid debts through compulsory liquidation.