Salford Council has provided Salford Red Devils with £315,000 for “immediate” financial support.
Salford’s premier rugby league club believe that the investment will help to secure their financial stability.
Last year the club was put in special measures after concerns around finances were raised following a dispute about the club’s ground. This investment marks significant progress for the club from their position in 2023.
The funds were sent to Salford City Reds Ltd on February 28 after a request from the club.
A Salford Council spokesman said: “The full acquisition of the stadium is going through many stages of pre-scrutiny and decision-making engagement along with financial and legal diligence.
“As we move towards the start of a new future for the community stadium and a sustainable financial plan for the club, we have agreed temporary, reasonable and proportionate financial support of £315,000 in line with the Subsidy Control Act.
“This will support the club to get on a firm footing as we move to the next stage. Salford City Council continues to recognise the value of Salford Red Devils to the city and local community and the importance of the club continuing to play in Salford.”
Despite the overwhelmingly positive reaction, Conservative councillor Robin Garrido is highly sceptical about the decision to inject money into the club.
“The whole thing doesn’t stand up,” he said.
“This is not the first time it’s happened, over the last few years we’ve had urgent requests for money because they’d run out.
This is the club that will be paying rent on the stadium, if they can’t even afford to run the club how can we justify buying it without sufficient income?”
He said the club received £170,000 last year which has not yet been re-paid.
Coun Garrido suggested that his fellow councillors were being stopped from voicing their concerns.
“We were not able to give our view on (the spending), we are being gagged. We’re the official opposition on the council but we can’t comment properly on something that significant.
“How can they find that sort of money at the drop of a hat, we’re not talking about £10 here. We can’t keep on with this, that stadium is going to cost taxpayers every year.”
A club spokesperson responded to the claims that they can’t afford to pay to fund their own ventures.
“On this occasion, we have received financial support from the local authority to secure the financial sustainability of the club – and one reason we have received this is due to unnecessary delay and obstruction from the current opposition which has set the budgeted timeline back.”
Salford Red Devils have been quick to highlight that they have thousands of people coming through the turnstile each year. However, the club has stated that it pays eight per cent of gate revenue to fund its tenancy and makes no money on food and drink sold at the stadium.
“To challenge the perpetual false narrative that the club seemingly does not pay its way, we would also like to be clear that the club have paid and continues to pay rent on a monthly basis that is higher than any amount paid by any of the club’s previous ownership since moving into the Salford Community Stadium.”
Salford Mayor Paul Dennett explained that the club are too important of an asset to not support properly: “Salford Red Devils are rightly acknowledged in the council’s Statement of Strategic Intent for the acquisition of the Salford Community Stadium as a 150-year-old institution in our city, a significant cultural contributor, and we expect them to be a key part of our planned city-wide Rugby Strategy.
“By providing this temporary financial support, we are securing the future of rugby league within Salford, as well as ensuring the successful delivery of the regeneration and social value benefits due from the council’s purchase of Salford Community Stadium, finally delivering on the visions first articulated 14 years ago.”
Salford Red Devils have made an impressive start to their Super League campaign, in their last outing the side defeated Hull KR 17-10.
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