Salford Red Devils in talks with Premier League club over stadium use

[josie andrews]

Salford Red Devils face collapse as Managing Director Paul King recently put it. He explained after the club’s damning statement of the local council that the club “would die” if the situation wasn’t remedied.

This is because the club’s tenancy agreement with the stadium is due to expire in December and the council have taken no action to resolve the situation around the stadium and the club’s tenancy.

If the situation persists, they could lose their Super League status for 2025 due to IMG’s minimum standards and this would likely see the club liquidate due to the fact they would struggle financially without the £1.3 million central distribution funding.

Speaking on BBC Radio Manchester, Managing Director King explained the severity of the situation:

“Yeah, it’s serious across multiple levels really. I think one is obviously we have different funding pots, the match funding that can generate up to up to £2 million, the standard mark, and they are utterly reliant upon having heads of terms at the new stadium.

“We also have a commercial partner opportunity that is also entirely dependent upon reaching that heads of terms point before we can actually get the ball rolling; that’s quite a significant sum of money, so that’s difficult for us on a commercial basis.

We can’t access food and beverage incomes and all that kind of thing until such time as we’ve got those heads of terms; so that’s difficult. On the other hand, we’re also in breach of Rugby League protocols as of the 1st of December. That would cost us a point of our IMG grading if that position is maintained until the end of 2024, then clearly in 2025 we’ll drop out of Super League.

“We’ll lose our distributions of 1.31 million; we’ll revert to about £50,000 below level, and we couldn’t function at that level with the part-time.”

He also revealed conversations with three different stadiums including with Manchester City over the Etihad complex:

We had a conversation a couple of years ago in and around Wool Lane but it isn’t compliant with the RFL and the cost of making it compliant was about four million pounds- that was just wasn’t feasible; so the alternatives of the office funds everybody knows.

“We’re having a conversation with Manchester City Council around the Etihad complex. There’s Keith Lane, Bury, and we’ve put the feelers out in the general direction of Stockport; and without wishing to be rude to any of those people, it’s not Salford. We’re Salford Red Devils for a reason, our fan base is primarily in and around the city of Salford and it feels a little bit of a death now if we were to move outside of the city.

“We’re desperate to represent the city that we’re representing really well, we have done consistently for quite some time now and we’re just hoping that we’re recognised on the local authority level.”

https://www.seriousaboutrl.com/salford- ... use-85147/

[josie andrews]

I thought this stadium was supposed to have been built originally for Salford Red Devils? Then along come Sale Sharks & a company that takes over the stadium that puts up prices & takes all the profits.

The car park prices have doubled since that company took over from £5 to £10!

No wonder the club are in dire straits.

Think that was the reasoning when Wigan Warriors took the sale of away match tickets from the DW because the “stadium management" wanted the profits for them! Don’t quote me I could be wrong but I’m sure I heard talk about it & other things, surrounding profits, being taken from Warriors sales.

[morley pie eater]

Salford City Council own 50% of the stadium. Peel Holdings own the other half but want out.
As I understand it the council are supposed to be buying them out, ot trying to, but it's dragged on for some time. Hence the uncertainty for the club.

[doc]

They would have been better off doing up The Willows.

[Blackpool_Pie]

I thought this stadium was supposed to have been built originally for Salford Red Devils? Then along come Sale Sharks & a company that takes over the stadium that puts up prices & takes all the profits.

Before you try blaming a RU team try looking why Sale came in and started using the AJ

[Richymac]

I thought this stadium was supposed to have been built originally for Salford Red Devils? Then along come Sale Sharks & a company that takes over the stadium that puts up prices & takes all the profits.

Before you try blaming a RU team try looking why Sale came in and started using the AJ

I have had a quick google. Couldn't find much as to why they started using the AJ Bell. Other than Edgeley Park was no longer a desirable home for the Sale Sharks?

[keptinthedarkfans]

I thought this stadium was supposed to have been built originally for Salford Red Devils? Then along come Sale Sharks & a company that takes over the stadium that puts up prices & takes all the profits.

Before you try blaming a RU team try looking why Sale came in and started using the AJ

I have had a quick google. Couldn't find much as to why they started using the AJ Bell. Other than Edgeley Park was no longer a desirable home for the Sale Sharks?

They moved because there ground was a shxt hole that looked like a pub car park

[Richymac]

Before you try blaming a RU team try looking why Sale came in and started using the AJ

I have had a quick google. Couldn't find much as to why they started using the AJ Bell. Other than Edgeley Park was no longer a desirable home for the Sale Sharks?

They moved because there ground was a shxt hole that looked like a pub car park

Well that's what I assumed, just don't understand why it is an issue with regards to what Josie said.

[josie andrews]

Salford City Mayor releases “worrying” statement in response to Salford Red Devils fury

In light of the statement made last week by the Salford Red Devils, Salford Mayor Paul Bennett has issued a statement on behalf of the council who the Red Devils see as at fault for their current crisis.

The Red Devils’ tenancy at the AJ Bell Stadium is set to expire at the 1st December which would leave their Super League status in jeopardy as it would mean that they could be punished due to being in breach of IMG’s minimum standards and lose their Super League status in 2025 which would ultimately threaten the club’s existence due to financial reasons.

The club need the council to agree a tenancy agreement for the stadium but now the council, via the Mayor, have responded revealing that it is not only them that need to be considered.

Mayor Bennett explained: “I was greatly concerned by the contents of Salford Red Devils recent public statement to fans, and I am sure this was echoed in the Salford Reds fan base and wider rugby league communities.

“For a 150-year-old institution, and pillar of the sport, to be facing such a precarious situation is very worrying.

“Acquiring the stadium continues to involve a painstaking amount of work. My whole team at Salford City Council – myself, cabinet members, councillors, officers and directors of the stadium company CoSCoS – have spent many months seeking to make this happen in a highly complex and commercially sensitive environment. In addition to dealing with political party opposition to the published Statement of Strategic Intent and the Cabinet’s related In Principle Decision in July to acquire our remaining 50% of our city’s Community Stadium from Peel Land and Property (Red City) Limited (“Peel”). No one should be in any doubt that the whole of Salford City Council is committed to this work, keeping residents, supporters and stakeholders up-to-speed every step of the way.

I recognise that the club cannot continue to exist without a tenancy for next season, nor can it continue to exist indefinitely on current terms. The issues are clear, and within Salford City Council we are working tirelessly to acquire the stadium from our joint venture partner, Peel, which will then enable us to adopt a new lease not just for the Reds but also for their stadium co-tenant Sale Sharks.

“The management team at the club are operating under tremendous pressure and in extremely difficult circumstances. We recognise the severity of the present situation and understand their desire to communicate to fans.

“As mentioned, we are joint owners of the stadium with Peel, and cannot make decisions without them. The stadium is also occupied by Sale Sharks, who have been exemplary tenants providing much needed income to the stadium which has been vital to making the entire business stack up. The council is also bound to provide services to the public of Salford which guarantees value for money to Salford taxpayers, and must provide robust checks and balances to ensure that our investments are sound and reasonable. Whilst I appreciate that the club does not have indefinite time, it is also the case that the council alone cannot decide the timeframes for the necessary decisions to be taken.

I remain determined to preserve this crucial piece of Salford’s heritage and will do whatever is in our power to ensure that this iconic Salford institution is not lost. But to achieve this we will need the continued support of the club and wider community, and we need fans to remain committed and involved, now more than ever. I have asked council officers to liaise with Salford Red Devils RFLC, as well as CoSCoS directors and as necessary, the Rugby Football League (RFL), to find a way forward that is satisfactory to all parties involved and does not undermine the Statement of Strategic Intent that Salford City Council agreed back in March.”

https://www.seriousaboutrl.com/salford- ... ury-85190/