A potential £350,000 loan to secure the future of Salford Red Devils has been awarded by the council.
The council have approved the loan to ensure the financial security of Salford Red Devils Rugby League club, who the council claim are at risk of going out of business.
It is hoped that the loan will be able to help keep Salford Red Devils afloat and playing in Salford, as the council recognises the amount of people that would be left unemployed if the club were to fall financially.
The agenda read: “To approve the making of a loan payment as rescue support within the definition of the Section 19 of the Subsidy Control Act 2022 in the sum of £350,000 to be paid to Salford City Reds (2013) Limited (‘Salford Reds.’)”
The loan would be paid in two instalments of £175,000, the first to be paid immediately, with the second payment “being payable only upon appropriate security for the loan/guarantee having been provided.”
The document claims that “Salford Reds are likely to go out of business in the short/medium term without any temporary liquidity support while it embarks on the preparation of a restructuring plan.”
The controversial loan comes as the council are due to discuss the purchasing of the AJ Bell Stadium next week at a council meeting.
The document also read: “The Council therefore believes that there are exceptional circumstances in the public interest to justify the provision of temporary liquidity on a time limited basis.”
The loan is set to be discussed on tomorrow in the council meeting, which can be watched here.
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