Salford Red Devils have been deducted three wins (the equivalent of six points during a season decided on points rather than percentage wins) with immediate effect.
The timing of this penalty means the Red Devils will move to 10th position in the Betfred Super League table, ahead of Friday’s match against now 9th placed Wakefield Trinity. There will be no further impact on the current club.
The legacy of the CVA liability had been a significant impediment to potential investment opportunities and the Club’s board can now focus on building a more secure future.
By way of background, in January 2013 the Club, then owned by Salford Football Club (1914) Limited, entered into a Company Voluntary Arrangement (CVA). An application for RFL membership by a new company, Salford City Reds (2013) Limited, was subsequently approved by the RFL Board. A condition of the membership was that the Club fund the CVA of the old company and that, if the CVA fails, then “the new Club would be deducted 6 points in the playing season in which the default occurs”.
Due to the acute financial issues caused by Covid-19, the CVA has now failed, as confirmed by a ‘certificate of non-compliance’ issued by a licensed insolvency practitioner on October 22, triggering the RFL Board sanction. It is important to note, however, that this ‘insolvency event’ does not relate to Salford City Reds (2013) and does not impact on any of that company’s debtor or creditor relationships.
The three-win deduction takes immediate effect. This is in line with the regulatory backdrop and competition framework applicable in 2013. With no relegation or promotion, a points deduction would have affected only a club’s finishing position. Salford finished in 14th (bottom) in Super League and therefore a sporting sanction at that time would not have affected the club’s final position.
