Salford set for £350,000 council loan as stadium buyout nears completion

SALFORD are set to get a £350,000 council loan to make sure they stay in business.

The Red Devils – who battered Hull FC 60-14 on Saturday – are extremely cash strapped and are waiting for sign-off on a deal which would see the local authority complete the buyout of the AJ Bell Stadium.

Salford Red Devils are set to get a £350,000 loan from the city’s councilSALFORD CITY COUNCIL

That would then see them get a lease of up to five years and, crucially, open them to getting cash from food and drink sales, which they currently do not get.

But Salford mayor Paul Dennett wants to hand the club the sum, repayable at 4.66 per cent interest, with SunSport understanding personal guarantees have been made from the club.

And according to documents it is ‘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.’

As it is about to vote through buying the whole of the stadium after rejecting Sale Sharks RU’s bid, the council outlined what the club means to the city.

It said: “If Salford Reds were to go out of business, it could have a significant impact on jobs and employment in the city, as the club is an employer in the city in its own right and has contractual arrangements that support jobs more widely.

“Salford Reds is a significant part of the heritage of Salford, being in the city since 1873, and is an important contributor to the wider health and social wellbeing of the city, working with schools and community clubs across Greater Manchester to inspire young people to achieve their potential and lead healthy lifestyles.

MOST READ IN RUGBY LEAGUE

KICKED

Rugby league told to take IMG’s grading criteria as a ‘kick up the backside’

FAN FAIR

Ryan Brierley’s time spent on Salford’s terraces taught him to not panic

BELL SAID

James Bell thanks Leigh for putting him on the road to being a world champion

HALL IN

Hull KR’s Ryan Hall hopes to pull on Rob Burrow-inspired England jersey in Test

FRENCH FANCY

Ben Garcia hopes to change opinions in rugby league as clubs learn IMG demands

NICE TRY

Paige Spiranac trolls herself as stunning golf influencer tries her hand at RUGBY

“Based on the club’s support network, employees, work in the community, effect on surrounding businesses/employment and its profile and heritage, the failure of Salford Reds would leave a significant gap in the market.”

The loan will be paid in two £175,000 installments, the second only being handed over once Salford Council has received appropriate security for the loan or a guarantee having been provided.