Salford Red Devils have recently lodged their financial report and accounts at Companies House – and the figures don’t make good reading.
For the year to 31 January 2014 Salford City Reds (2013) Limited lost a total of £5,142,778, which is almost certainly the greatest loss ever suffered by a Rugby League club.
The club’s turnover was just £2,298,378.
This article originally appeared in last week’s edition of League Express newspaper. Click here to download the digital version to your computer, smartphone or tablet
[follow id=”LeagueExpress” size=”large” count=”true” ][follow id=”RLWorld” size=”large” count=”true” ]
The accounts reveal that the company meets its capital requirements through the financial support of Dr Marwan Koukash, who provided a loan during the period of £1,416,989.
“Dr Koukash has confirmed to the Board his continued financial support to the company for a period of not less than 12 months from the approval of these financial statements (on 30 October 2014).
The losses include a total of £1,585,327, which was originally shown as goodwill, and appears to be half the amount owed to creditors when the company acquired the club for £1 on 1st February 2013.
As well as Dr Koukash the company has other long term creditors totalling £2,571,325. The identity of those creditors is not revealed.