The future of Salford Red Devils has been up in the air especially with regards to their stadium.
The club saw their tenancy agreement with the stadium expire over the winter which left them in violation of the IMG minimum standards introduced by their re-imagining of rugby league.
Salford would later agree an extension of the agreement but their long term future remains unclear. This led to Mayor Paul Bennett pushing for the council to buy the complete stadium in an open letter.
Now Councillor Robin Garrido, Leader of the Official Opposition and the Conservative Councillors Group Salford City Council, has responded.
Salford Red Devils future addressed in open letter
Salford Red Devils v Catalans Dragons Picture by Allan McKenzie/SWpix.com – 22/09/2023 – Rugby League – Betfred Super League Round 27 – Salford Red Devils v Catalans Dragons – AJ Bell Stadium, Salford, England – A general view GV of Salford playing Catalans. Salford AJ Bell Stadium
The letter responds to that of Bennett and explains why it is not so simple for the Council to buy the stadium.
Garrido explained: “Firstly, as I pointed out in my covering email to you, I am most disappointed that you have chosen to play politics on this important issue which in our opinion will have far reaching effects on our finances. You have used nearly two pages of your letter devoted to attacking the national Government and its economic policies rather than concentrating on whether we as a Council can afford to buy the Stadium. At this point can I be clear that all the comments I will be making refer to the ownership of the stadium and surrounding land and not to the Club (The Red Devils) but I necessarily have to refer to them during this letter because they are part of the financial considerations and the reason why you want to buy the stadium. We do not believe the only options for the club are for the Council to buy the Stadium.
“The other point I must make clear at this stage is that as you are aware the information Councillor Turner and myself have been supplied with to date including the various options being considered and the information discussed at the Growth and Prosperity Meeting and a subsequent briefing with officers in the past week have been on a strictly private and confidential basis which means that I have not been able to discuss the detail with the majority of my Conservative Group who of course make up the official opposition, nor can I impart any of this information in this open letter. Those reading this letter apart from yourself can draw their own conclusions as to whether this is fair or makes for good democratic decisions. Commercial reasons for gagging do not always outweigh democratic decision making.”
“Now let me start with a recap of the history concerning this stadium. In 2008 the first request to rescue the club, then at The Willows, was made for a loan from the Council to enable wages to be paid. In 2011 further loans were made totalling £1.5m to meet the clubs financial obligations. I understand that this loan still remains outstanding 12 years later (this was public knowledge having been the subject of a local newspaper report). Further loans were given as you know last year totalling £215,000 of which at least £175,000 is outstanding. Further sums of money have also been paid. Unfortunately it is in the public domain that the club have struggled and are still struggling to pay their way including full rent on the stadium.
“This unfortunately brings us to the situation which council taxpayers are now being asked to fund. Now as I have already said I cannot discuss any of the details surrounding the options the Council is considering but what I can say is that there are loans outstanding of £38m of which the Council is responsible for £30m and as far as I can see there is no realistic prospect of achieving sufficient income to pay off these loans together with any money required to purchase half the stadium from Peel (for the benefit of others reading this letter the stadium is currently owned by a company of which the Council and Peel are equal shareholders). You will of course say that the deal to purchase may also include the surrounding development land of which the Council will receive half of the sales proceeds as and when the land is sold but I doubt whether this income will be any where sufficient to pay of the debts the Council will be acquiring.”
Apologies to readers for the long quote but it is the best way to understand what is being stated by Garrido with the situation a complex one surrounding the stadium.
Garrido also stated: “I and my Group are fully supportive of the need and indeed your aspirations to improve sport and community activities throughout Salford unfortunately our relationship with the stadium over the last 13 years has not really helped in this regard even though we were promised back when the stadium was built that this would be a great community asset and would help to expand sport throughout Salford.”
There is clear support for the future of the Salford Red Devils but important considerations are being taken before an decisions are made.
