sportskeeda
SALFORD has been urged to cease any fire sale by swiftly showcasing the financial prospects promised by the groundbreaking new stadium agreement.
The Red Devils received confirmation on Friday that the city council’s £7.7 million acquisition of its partner Peel has been finalized after 10 months of delays.
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Nonetheless, even this progress may not prevent player exits as Rugby Football League financial analysts examine the club’s financial standing.
Commercial agreements are now primed to be activated after previous delays cost the club three significant opportunities, and an advertising screen facing the nearby M60 motorway can now be installed.
Conversely, sources suggest that a crucial solution to the ongoing issues is the entry of a new investor, as three parties are currently undergoing the due diligence process.
Despite the deal with the council indicating potential new revenue streams, these will only materialize once a significant cash flow is established.
The authority’s decision to retract a subsidy control grant in early November, despite prior assurances, appears to have exacerbated financial pressures, leading Salford to request an advance from its central distribution funds.
This shift in prioritization has triggered additional special measures, prompting RFL’s finance director Rob Graham and two independent analysts, including former Wakefield CEO Michael Carter, to evaluate the club’s finances.
Presently, they have suggested that the club cut its budget by as much as 40 percent, and according to SunSport, the prospect of extra funds from the stadium acquisition holds no weight without actual deposits in Salford’s accounts.
The most immediate solution to these challenges involves securing a new investor or completing a takeover, with close sources expressing optimism for a resolution before the season starts in February.
SunSport has verified that neither players nor Rowley approached club management regarding their concerns before finalizing the stadium deal, which encompasses the surrounding land.
Salford’s City Mayor, Paul Dennett, elaborated on the newly acquired asset—primarily expected to be occupied by Sale Sharks RU—and how it can generate revenue, with land deals potentially alleviating a substantial portion of the £37 million debt held by the parent company.
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He emphasized: “Our objective was to fully acquire it to effectively leverage that asset and create a genuine community stadium for the city.
“Investing in the stadium is similar to funding a theatre or an art gallery, just like our support for the Halle Orchestra when the BBC relocated here.
“Salford deserves access to cultural, leisure, and sporting facilities; it’s crucial that we pursue this goal.
“I firmly believe the stadium can yield significantly improved results. Have I experienced frustration? Absolutely.”
