Council to buy full ownership of Salford Red Devils stadium

[josie andrews]

A council is to buy the full ownership of a sports stadium which had an uncertain future.

Salford Council is to take over the Salford Community Stadium which is used by rugby league team Salford Red Devils and rugby union club Sale Sharks.

The council, which owns 50% of the site, is discussing a deal to buy the remaining half of the ground which is owned by property company Peel.

It would own the stadium, surrounding land and training pitches.

Empty land around the stadium, which opened in 2012, is expected to be sold for regeneration projects to finance the deal.

The future of Salford Red Devils was in doubt last year until a 12-month extension on the stadium lease was agreed with the co-owners.

Salford mayor Paul Dennett said: "I am delighted that we are nearing conclusion of months of painstaking discussions."

He added it "represents fantastic value" as once the land was sold the council would have created new jobs and made private sector investment.

Paul King, managing director at Salford Red Devils, said the club was at a "crossroads" and could struggle to survive without a long-term tenancy at the stadium rather than 12-month extensions each year.

Mr Dennett said once the stadium purchase was done the council would look "straight away" at the lease.
Mr King said: "This is certainly a big step in the right direction, and hopefully this can now lead to a swiftly agreed deal."

The council's deal to buy the stadium and surrounding land is expected to cost about £2m.

The council, which has subsidised the ground since the Covid pandemic, will inherit the £38m debt owed by the stadium company.

In a letter to Mr Dennett, councillor Robin Garrido, leader of Salford Conservatives, wrote: "I doubt whether this income [from the land sale] will be anywhere sufficient to pay the debts the council will be acquire.

"The stadium is not showing a profit, only two plots of land have been sold in 14 years, one of the stadium tenants owes money, and as far as I can see no one disputes that the financial position of the Reds is uncertain."

He added the proposals were "unduly hurried" and said he imagined "quite a lot of expense has been incurred in officers' time and other fees for KPMG".

The councillor said "accurate figures and cast iron projections of income" were needed.

https://www.bbc.co.uk/news/uk-england-m ... r-68285046