Salford Red Devils: Mayor 'determined' to preserve at-risk club
- Published
The Salford Stadium is jointly owned by the city's council and Peel Group
Salford's mayor has said he is "determined" to preserve the city's rugby club amid fraught financial negotiations over their stadium.
Salford Red Devils said it could be "effectively liquidated" if a new deal is not agreed after their current tenancy agreement ends on 1 December.
The Salford Stadium is jointly owned by the city's council and Peel Group.
Mayor Paul Dennett said he wanted to ensure the club was "not lost". Peel declined to comment.
Opened in 2011, the 12,000-capacity stadium was built as a new home for Salford Red Devils, then named Salford City Reds. It also hosts Sale Sharks.
'Endless procrastination'
Salford City Council currently owns 50% of the ground and, earlier this year, tabled a plan to buy Peel Group's share.
However, council officers were criticised for "endless pontification and procrastination" by Salford Red Devils in a statement last week.
The club said: "The stark reality now is that without their action in the coming days and weeks - the future of the club is at risk."
Mr Dennett said "the destiny of the Reds is not simply in Salford City Council's gift" and they "cannot make decisions" without Peel.
Salford mayor Paul Dennett said they "cannot make decisions" without Peel
Mr Dennett said he had asked council officers to liaise with the Red Devils "to find a way forward that is satisfactory to all parties".
He added Sale Sharks had been "exemplary tenants providing much needed income".
The Red Devils previously said an "unfavourable lease agreement has hampered our ability to become self-sustainable and grow".
"Following assured income failing to materialise, the club took a loan of £175,000 from the council and are now subsequently making repayments with interest on a loan that - had the expected progress been made - would never have been needed.
"Had this been in place when expected - prior to February 2023 - access to the proceeding income streams would have made unforeseen reductions to central distributions less significant a blow and our position now be much stronger."
They said they had to sell prominent players due to the uncertainty.
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