Club Statement: the truth behind the rumours
Over recent months, there has been repeated media speculation on the Club’s financial position. We have purposefully maintained a level of silence since our last statement, not out of avoidance, but out of necessity due to the sensitive nature of our ongoing discussions with potential investors. Our discretion has been to maintain and ensure the integrity of those discussions, bound by Non-Disclosure Agreements, and to protect our Club, players and staff.
As the position stands, contrary to what has been reported, investor negotiations continued over the weekend as part of the lengthy, rigorous process to secure a takeover for the Club. This is still live and we are working to expedite – details of which we can’t disclose given the Non-Disclosure Agreement in place. However, the Club has been directed to sell players without delay; the position is the RFL have issued a sustainability cap of £1.2 million and until we reach that, we are now prohibited from registering players for the upcoming season.
Distribution Advance
We are grateful for RL Commercial’s agreement to provide an advance on our allocated 2025 distribution. This was a welcome bridge in December 24 towards achieving longer-term stability, whilst investor discussions continued at the Club and the Councils’ acquisition of the stadium was finalised.
The terms of receiving the advancement were that the Club be placed under ‘special measures’ requiring a reduction in overheads of £800,000. We were not given a clear timeline for compliance on required expenditure reductions, therefore the Club took the decision to hold our position for the short-term while investor negotiations are ongoing. During this time the Club has received offers for a number of players, none of whom have been available for sale until today.
It is important to add that the advancement monies were held by RL Commercial and payments administered directly from them – the Club have never been given the funds to manage directly.
Salford Community Stadium
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.
Salford City Council Community Funding
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.
To conclude, we believe we have acted in the best interests of the Club, players, staff and our fans, given the complex situation we find ourselves in with multiple dynamics in play. We empathise and understand the frustration of our fans and are deeply sorry to reach this position. Thank you for your continued patience and support.
Our focus remains in working to explore all avenues possible for the long-term stability and success of Salford Red Devils. Immediate next steps are to continue the potential takeover process to secure investment as soon as possible, whilst now simultaneously selling players to meet RL Commercial regulations.
