SALFORD RED DEVILS have revealed that stadium and council funding delays have hampered the club’s ability to plan financially.
The plight of the Red Devils has been well-documented in recent days, weeks and months, with the club securing an advance of £500,000 for their central distribution funding last month.
However, that hasn’t been enough to stop the steady decline and Salford have been forced to sell players immediately in order to raise the £800,000 necessary to meet the sustainability cap imposed upon the club.
Though the Red Devils’ lack of a rich benefactor has been key to the lack of ready available funds, the club has also explained how delays to the sale of the Salford Community Stadium and grants from Salford City Council have impacted negatively.
The statement on the stadium reads: “On December 13th 24, Salford City Council finally announced that it had completed the acquisition of the stadium. Given the proximity to the festive period, we have been unable to contact the council to secure an immediate meeting and ascertain next steps in order to maximise Club revenue opportunities.
“Prior to acquisition, one investor negotiation collapsed due to the investment risk of not having any confirmed position from the Council on when the stadium acquisition would be finalised; an example of the delicate negotiating position we find ourselves in.
“Concurrently we have also been in a holding pattern with the Giant Advertising screen development alongside the M60 motorway, another critical enterprise and important contributory factor to drive the Club forwards towards financial stability. This project has been in abeyance for approximately 12-months awaiting the acquisition of the stadium. Additional income was due to be unlocked once the stadium deal had completed, which had been built into Club revenue planning.
“As the local authority return from the festive recess, we are hopeful a meeting with the Council takes place sooner rather than later so we can move things forward.”
The statement also explained that the grant from Salford City Council has been delayed: “In March 24 it was suggested by Salford City Council the Club could receive a subsidy control grant to support Rugby League and the rugby development pathway in the City of Salford and Greater Manchester. This is akin to other Salford community entities who have received similar funding i.e. The Lowry and RHS Bridgewater. The Club were notified in July 24 of a delay and again in September 24 with a further delay until November 24, again impacting financial forecasting.
“In November 24, Salford City Council advised that the subsidy control grant was not available due to funding shortfalls elsewhere, the impact of which was that the Club had already committed funds to player and staff recruitment and paid for pre-season preparations including a warm weather camp in Portugal. Effectively, these projected funds had already been allocated.”
