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NEW SALFORD COUNCIL STADIUM LOAN WILL TAKE TOTAL TO ALMOST £25MILLION
 

Star date: 14th August 2017

SALFORD COUNCIL TO HAND ANOTHER £632,000 LOAN TO AJ BELL STADIUM

This week, cash-strapped Salford City Council is set to agree another loan of 'up to' £632,500 for its City of Salford Community Stadium, branded the AJ Bell Stadium.

This will take the current total amount of Council loans for the Stadium - which made another huge loss last year and has net liabilities of over £7million - to almost £25million.

Full details here...


Salford City Council is set to agree a further loan to its City of Salford Community Stadium (COSCOS) for 'up to' £632,500 this week.

COSCOS - branded the AJ Bell Stadium and home to Salford Red Devils and Sale Sharks - is a joint venture company with Peel Holdings, which will also forward a matching loan for the ailing project.

Latest Salford Council accounts show that, at the end of March this year, there was an outstanding loan of £16.678million for the actual building of the stadium, plus £7.442million outstanding loans for 'operational funding'. This latest loan of £632,500 for 'operational funding' will take the total to £24.752million.

The Stadium company made a £1.459million loss last year Ė down from a £671,000 profit the year before Ė and has net liabilities of £7.068million, up from liabilities of £5.610million last year.

Strangely, in the report going to councillors this week recommending the new loan, officers state that there's been "an improvement in performance" of the Stadium, before explaining that "Ongoing financial support is necessary to enable the Stadium Company to fully discharge its liabilities during the current financial year.

"Without this additional support from both shareholders, the Stadium Company would default on the existing council loan with serious implications for the City Council's investment and accounts" it adds.

The new loan is required, bizarrely, so that the Stadium can re-pay previous loans from the Council... or, as the report states, "to pay its existing loan principal and interest obligations to the City Council".

Even more weird is that the Council will find the money for the loan from interest payments made by the Stadium company on previous loans. In other words, money is circulating from the Council to the Stadium and back, while the liabilities and loans are increasing. Interest repayment on this latest loan, the report states "will be a number of years hence".

The report states quite clearly that more loans will be required in the future... "It is also currently anticipated, that over at least the next three years further loan finance will be required from the two COSCOS shareholders to support the company..."

The Council is hedging its bets that 17 hectares of land around the Stadium will be sold to pay off the debt, while events will feed into income. So far, however, only one plot of land has been sold, to Greene King restaurant and pub chain, two years ago.

"Further sales of development land are in the pipeline and will possibly include small
supermarkets, fast food outlets, car dealerships, a hotel and petrol filling stations" states the report "Potential tenants are also interested in leasing space within the stadium enabling the stadium to maximise commercial space both inside and outside."

The Council is hoping that the opening of the new road, or Western Gateway Infrastructure Scheme (WGIS), plus the development of Port Salford, will help to improve finances as it "ideally positions the Stadium in the centre of this major regeneration area in the city."

This new £632,500 loan for the Stadium is ten times more than was handed to Swinton Lions last week to ensure that ailing club's survival...


See also related Salford Star articles...

Swinton Lions Secret £60,000 Loan from Salford Council Ė click here

Salford Stadium Makes Huge Loss Ė click here

Photo by Gareth Lyons

Salford lad wrote
at 07:59:28 on 18 August 2017
Mr Platt you are living in la la land! This scandal continues. The reality is that it is the tip of the iceberg of how the council prostitutes itself to Peel and the defunct SalfordcRed. The massive cover up by Salford Labour Councillors when their was exposed by Salford Star continues to pervade the air. So the highly paid 200 k City Director "slimy" Jim Taylor is seemingly still failing in his public duty to hold the council to account!

Retired Socalist wrote
at 16:32:09 on 15 August 2017
Mr Platt you forgot to end your post, and we all lived happily ever after

Steve Platt wrote
at 13:40:05 on 15 August 2017
It seems the significant delay in completing the new road has impacted on maximising the value of the retail land on the site. I'm sure once the road is finished the 17 hectares of land will be sold for development at a premium, and the loan should be repaid with considerable interest.

Mary ferrer wrote
at 18:46:50 on 14 August 2017
First these loans have nothing what so ever to do with Salford Red Devils. The stadium has been running at a loss since day one.we were sold a community stadium. We lost the community bit first then we lost the Salford.this project was a white elephant from the start.How can the council justify loan after loan to themselves.Yet they can cut our major services across the city.young and old. The disabled and most needy.Heard all this crap about when we sell this and that.Don't forget the council got in bed with Peel to build the stadium. These are the people WE are giving 9MILLION for the lease on the grand project in Worsley. The Garden project.But don't need toworry about the 19MILLION in total WE will have to spend,because,guess what we minions will get loads and loads of jobs.Now let me think where have I heard that one before.I know the BBC when media city came to Salford. HOW many did the tax paying members of our great city get,was it 25/26.But never mind you keep voting them in again and again.Our Labour councillors know they can get away with what ever they want,because the sheep,otherwise known as the voters of this once great City will keep voting them in

Joe Oneill wrote
at 15:28:01 on 14 August 2017
This Council under salford Labour have dug a hole so deep they can't escape, the place is a money pit Loans to the stadium and the club are escalating so much it must eventually effect other Areas of the city. If the place is sinking that fast then lets pull the plug and see what's left we must be a major creditor, the last Labour Leader took us in I suggest he gets the task of getting us out, Salford white elephants should be the new name of the club.

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