Super League bosses summoned to emergency meeting as club faces financial crisis

[josie andrews]

Exclusive: Salford Red Devils once again find themselves in a dfficult financial position.

Salford Red Devils are facing fresh financial difficulties, with the Super League club set to ask their peers for an advancement on their central distribution. Rugby League Live can reveal a meeting has been set for Thursday in which Salford will request to receive central funding early due to new financial issues.

The Reds, who have a history of financial challenges, find themselves in need of support after suffering setbacks in the off-season and they are thought to be asking for around £500,000 to get through their current situation.

Club officials are set to explain the matter in detail to their counterparts in this week's meeting, but it's believed that financial projections based on Salford City Council taking over the Salford Community Stadium have not yet come to fruition, resulting in the club finding itself in need of support.

The fact that the meeting has been arranged in haste has left sources feeling that Salford's predicament must be serious. The club's payroll is due before the end of the month.

In the past 18 months, Salford have sold three star players, Tyler Dupree, Brodie Croft and Andy Ackers, all for six-figure fees, while a Community Share Scheme saw supporters raise £364,270. Despite that, the club finds itself with another financial issue.

It has been suggested to Rugby League Live that Salford are in a position to get through November but without some financial support, they are set to come unstuck in December. Loans are already believed to have been acquired but that isn't enough to get Salford through to the new year.

How much support Salford receive from their Super League counterparts remains to be seen but this publication has spoken to some senior figures who are sceptical about the situation given the frequency of their financial issues. Last November, Salford were placed under special measures after asking for an advancement on distribution, and they now find themselves in the same situation a year on. They would enter special measures once again if their request is approved. At the same time, others are aware of the implications for the competition should Salford's situation deteriorate.

The club are hoping to erect a giant billboard which will overlook the M60 in the future which, it is anticipated, will significantly enhance their revenue streams. However, that has not materialised as it stands, with the club still waiting for the benefits of the council taking over the stadium to materialise.

https://www.examinerlive.co.uk/sport/ru ... 4776833d50

[fozzie58]

Oh dear Salford certainly do things the hard way don’t they?

[Wiganer Ted]

They've signed any number of players for 2025 so how come they are pleading poverty?
On the field they are making great progress but off the field they seem to go from crisis to crisis. This isn't the first time Salford have asked for their payments early.

As a matter if procedure does anyone know how often SL clubs get their central funding?
Is it during the season? Presumably it's not calendar monthly so how is it done?

[archiekeith]

Oh dear Salford certainly do things the hard way don’t they?

I think their long term future is as unlikely as Richard Dawkins becoming the next Archbishop of Canterbury!

[josie andrews]

Salford Red Devils financial update - player sales and Super League concerns explained

Exclusive: Details from inside Super League's meeting on Salford Red Devils have been revealed.

Salford Red Devils asked clubs to approve an advancement of central funding to the tune of £500,000 yesterday. The financially challenged Super League club are trying to navigate through fresh cash flow problems which, if they aren't addressed, could see them fall over before the end of the year.

Club CEO Paul King discussed the matter with his Super League counterparts on Thursday, outlining the club's position and why they have found themselves in need of help. Essentially, King explained that their latest issue stems from the fact that revenue streams they had hoped would be activated from Salford City Council's takeover of the stadium have not materialised, leaving them in their current position.

However, it's understood there were concerns about the detail provided, which didn't give assurances regarding the long-term financial viability of the club. In the end, it was decided that they would reconvene on Monday to allow King time to provide further details that could provide reassurances over their future.

One of the biggest concerns within the room was the size of the figure Salford had requested. King explained that £500,000 was needed to cover wages and revenue, with almost half of that figure understood to be on the latter. Clubs receive around £110,000 per month in central funding, meaning Salford are asking for almost 38% of their distribution ahead of schedule.

In the last 18 months, Salford has received three six-figure transfer fees from the sales of Tyler Dupree, Brodie Croft and Andy Ackers, as well as a cash injection of £364,270 from a Community Share Scheme, largely generated by supporters.

Furthermore, a freedom of information request showed the club had received three different payments in the last two years from Salford City Council—a loan worth £40,440 in December 2022, a £175,000 loan in February 2023, and a £315,000 grant in March 2024.

King stated in the meeting that loans had been taken out to help fund the club but despite all of that, it still needs more. That is fundamentally the biggest concern as it has left many questioning the club's viability, even if the revenue streams the club is anticipating from the stadium deal come to fruition given the current state of the club's finances.

This is where Super League has asked King to provide further financial detail as what was declared on Thursday wasn't deemed sufficient enough to alleviate concerns. One source said giving Salford the money would be like "trying to stop the Titanic sinking with a plaster."

Another frustration is the fact that Salford have recruited extensively for the 2025 season despite their ongoing issues, with the likes of Esan Marsters and Chris Hill among their new signings. King explained that deals were done in view of the stadium deal being completed but others have pointed out that Joe Bullock and Justin Sangare were only signed last month. Those who have spoken to Rugby League Live do not believe that Salford could not have been aware of their potential financial issues at the point of signing them.

The notion of selling players to other clubs was addressed but King stated that it was counterproductive, citing that the sales of Croft and Ackers last year had a derogatory impact on season card sales so was a route the club did not want to pursue. However, counterparts in the room made it clear that was not an acceptable stance and was something they would need to consider.

An outcome is expected on Monday. Salford issued a statement saying an adjournment had been agreed "to allow more time to consider the documentation provided", though people in the meeting have claimed this isn't accurate, and it was instead done so the club could provide more detail.

https://www.examinerlive.co.uk/sport/ru ... e-30428451

[josie andrews]

They've signed any number of players for 2025 so how come they are pleading poverty?
On the field they are making great progress but off the field they seem to go from crisis to crisis. This isn't the first time Salford have asked for their payments early.

As a matter if procedure does anyone know how often SL clubs get their central funding?
Is it during the season? Presumably it's not calendar monthly so how is it done?

Clubs receive around £110,000 per month in central funding.

https://www.examinerlive.co.uk/sport/ru ... e-30428451

[josie andrews]

Don’t know what’s happening but when did Salford City Council actually take over full ownership of the club?

Reading what Mr King is saying, or am I misunderstanding it, is that the revenue from the stadium, ticket, food sales etc has not been given to the club?

[jobo]

Don’t know what’s happening but when did Salford City Council actually take over full ownership of the club?

Reading what Mr King is saying, or am I misunderstanding it, is that the revenue from the stadium, ticket, food sales etc has not been given to the club?

Think it's just the stadium that Salford Council have taken full ownership of.
The club belongs to the Community thingy, which from my reading of it, is owned by the fans.


Either way, they need a willing benefactor to stump half a million or so every season. Same as most of the other clubs really.

[fozzie58]

Don’t know what’s happening but when did Salford City Council actually take over full ownership of the club?

Reading what Mr King is saying, or am I misunderstanding it, is that the revenue from the stadium, ticket, food sales etc has not been given to the club?

Think it's just the stadium that Salford Council have taken full ownership of.
The club belongs to the Community thingy, which from my reading of it, is owned by the fans.


Either way, they need a willing benefactor to stump half a million or so every season. Same as most of the other clubs really.

Agree with what you say mate it’s the stadium the council hope to take over but there seems a hold up there what they need is a sensible Ian Lenegan type benefactor who’ll guide the club along but sadly people such as lenegan don’t come along often

[Mike]

If they took 500k early last season, isnt needing 500k again this season compatible with a break even year? They're in the same situation now as they were then so it's no worse. It's an advance, not extra fuding.

However it's concerning they can't make it to financial viability. They're never going to be doing any better than they are now, so if the fans and money aren't there now it's a concern for when their onfield performance drops off.

I wonder how many finance points they scored!