Cash boost for Salford

Neal Keeling

January 16, 2010

SALFORD City Reds has been given a £350,000 loan from their local council.

The club has until 2012 to pay back the money. It is understood part of the cash was used for day-to-day running of the club.

Last month, the MEN revealed the council is planning to borrow £20m to build a community sports stadium at Barton - which the Reds would use.

The council has refused to say specifically what the loan is for.

Salford council leader John Merry said: "We're committed to ensuring the club sees its way into 2012 at is new stadium, and last year we provided a loan of £350,00 to them to help them do this.

"Salford City Reds is a Premiership club and its presence plays an important part in the city's economy and its future. The club puts back a lot into our communities and works tirelessly with young people and schools and we will support it, like any other organisation that benefits the city in such a way."

The loan is secured by directors' guarantees and a charge on the the existing Willows ground, plus some paintings held by the club.

Super League franchise

The council's decision to build a new stadium will help the club to retain their Super League franchise. The Reds' current Willows ground does not meet league standards. But the club will not be the only tenants if the 15,000-seat stadium is to be viable.

The council hopes the stadium will raise the profile of the city, generate employment, act as a focus for sports-based and other community activities and promote healthy living through links to community activities.

The move follows the demise of Red City Developments last year. It had been formed to deliver the stadium but went into administration.

Planning permission for a £35m, 22,000-seat stadium was given in in 2006.

Property giant Peel Holdings, owns 30 acres of the proposed site at Barton and Salford council 40 acres. A joint venture company is being set up between the council and Peel to deliver the stadium.

Liberal Democrat councillor Mary Ferrer said: "I find it appalling that we can be lending money this way. It is a worrying situation if a loan of this size is required by the club and they are still planning to go to Barton."

The Reds no longer own The Willows. It was sold last year to Godliman Watson Homes Ltd.

The council plan to borrow cash to build the stadium has been approved by its ruling cabinet but will be subject to further scrutiny once a business plan has been drawn up.

A council report says: "It is of primary importance to Salford council that the stadium is used outside of match days by organisations other than the rugby club. Not doing so, fails to provide an adequate return on the potential investment."

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alan marshall (16/01/2010 at 22:28)

This is an absoulte disgracefrom a disgraceful council.
These same clown stood to one side when Swinton Rlfc had money troubles back in the eighties and have offered little or no help in Swinton's efforts to relocate back in the town at at greatly reduced cost than £20 million.
If Salford have money trobles where are the directors and where is the money they received from the recent sale os Myler to warrington,more laughably they should sell the paintings which they have put up against the loan.
Play fair and equal Mr Merry and the other individuals involved.

julian caine (17/01/2010 at 13:33)

as a swinton fan why are we as tax payers being asked to fund a new stadium, players wages, general running costs of salford reds rlfc if the council in there MERRY way are helping them why not help swinton lions rlfc ? we pay council tax too MR MERRY and WE VOTE, i wonder if mr merry and co supported swinton would it be swinton rlfc whom would be getting a new ground??? its a disgrace that taxpayers money is being loaned to a team/club that is running at a loss no ground of its own or meaningfull assets and no guarentee's that the tax payer will get their money back

Jim Shelton (17/01/2010 at 14:40)

It is important that the Reds continue in the SL. For the club ,certainly, but for the community as a whole. It is a matter of prestige for salford and for the M/C area at large. Once it is built, there will no shortage of possible co-tenants. The payback will come in the long-run for both the city and the club.Torred

Officer Dibble, On the lash with Choo-Choo and Benny. (17/01/2010 at 19:53)

So, again I ask....is it going to be a 22,000 or 15,000 capacity stadium..??

Why not have the 'community stadium' used by both Salford and Swinton..?? And why not open discussions with United to play their midweek reserve games there..?? Better than traveling to Northwich/Altrincham/Hyde surely..??

Just a thought.

Knowall, stretford end (17/01/2010 at 21:04)

typical Swinton fans thinking small time again, when Swinton went to the wall it was because your owner decided to sell the ground to make money and didn't really care. With Salford John Wilkinson has put a few million in of his own, plus the "owner" of the Willows is actually on the Board at Salford so technically we still have our own ground. The council recognise that a professional sports team is important for a City and swinton are not very professional so the choice was Salford. The council gave £20m to the BBC as well and lots to the Lowry but that wouldn't be news.

FrostySnowman (17/01/2010 at 23:10)

This raises some very serious questions, both of the council and the club. The club will not go under if it does not remain in the SL, it seemed to cope quite well when it wasn't not too long ago. It is poorly supported in terms of home fans, its only when a big team visit the Willows tha the gates increase, with more opposition fans present. It is too big for Manchester United reserves, who are certainly not going to pay any sort of inflated rent to play there.

Kevin Ashcroft (18/01/2010 at 11:13)

All hush hush at the Reds eh? We wonder what the books looked like after the sale of Myler. Hmmmm

community activist, salford manchester (18/01/2010 at 11:50)

I understand the ground was sold in the last 12/18 months, what happened to the money from the sale. If the club needed this money and they were not a bad risk,why did they not go to the banks, that is what we would do should our business need money to keep afloat.So are they a bad risk. And how and when will the money be paid back.
Just think what the city could do with £350.000.
If Wilkinson hadn't given Hazel £10.000 that could have helped, there again it could have helped get the £350.000.

Lancashire 4ever, Pendlebury, Manchester, Lancashire (18/01/2010 at 17:06)

A community stadium share with the "Pinks"? Not on your Nellie! Let's come home to M27 as per plan.

Mike Crawley (19/01/2010 at 17:30)

What about a potential share with Sale Sharks ?
Dedicated rugby stadium which would be in use all year round.
Seems to work at Leeds

Dean, Swinton (21/01/2010 at 16:42)

Merry abusing his power as usual,

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