HOME   ARCHIVE   GALLERY   SHOP   ABOUT US      
 

 
SALFORD RED DEVILS GET ANOTHER THREE YEAR HOLIDAY TO PAY SALFORD COUNCIL DEBT
 

Star date: 9th November 2017

SALFORD CITY COUNCIL WAIVES LOAN DEBT FOR A FURTHER THREE YEARS

Salford City Mayor, Paul Dennett, has agreed to suspend loan debt payments by Salford Red Devils for a further three years. In December last year, the Council agreed a twelve month payment 'holiday' on the Reds' loan, which was due to end at Christmas but that 'holiday' has now been extended until 2020.

This latest decision, taken by the Mayor alone with 'special urgency', means that Salford Council will have received nothing from the rugby club for over five years. The total debt now stands at over 1million.

Full details here...


Back in the days when John Wilkinson owned Salford Reds, Salford Council contrived around 1.5million of loans to his company Salford Football Club Company (1914) Limited.

When Marwan Koukash took over the club in 2013 he agreed to take on that debt, and over 1million debts to other creditors, via a Company Voluntary Arrangement (CVA) with his company Salford City Reds (2013) Limited.

The terms for the CVA, the Salford Star has understood, were that Salford Council would receive 4/25ths of what it was owed - a total of 253,291 - by 2018, with the rest of the debt - 1.33million spread until 2038, interest free.

The CVA payments to the Council were to be paid directly to the Council from RFL (Rugby Football League) amounts due to the club from tv rights and stuff. However, in summer 2015, the then City Mayor, Ian Stewart, agreed a payment holiday on the CVA for 17 months, meaning that the club didn't have to pay the Council and other creditors for that period.

The 'holiday' was extended by current City Mayor, Paul Dennett, for a further twelve months last Christmas. And now the Mayor has extended the 'holiday' for a further 36 months, in a decision taken under 'special urgency',with no input from any other councillors.

"The beneficial owner of Salford (2013) is transferring the ownership of the club, the
aim is to be self-sufficient with no further funding from the benefactor" states the official Council 'holiday' decision notice "Salford (2013) requires a period to consolidate its finances. The supervisor will then determine the level of payments that Salford (2013) would be able to make based on the previous year's income and expenditure and the projections for the year ahead."

From this statement, it looks like Koukash has washed his hands of the club, and handed a financial basket case over to a new Trust (of which no public details are forthcoming as yet) that will now be responsible for historic debts. Yet no Salford councillor or Mayor has yet taken responsibility for the historic financial cock-up that gave rise to loans and grants to Wilkinson's Reds in the first place.

According to the latest Salford City Council accounts for 2016/17, the long term Salford Reds debt is 1.061million, up from 1.038million the year before.

As part of the payment holiday agreement, the Council has insisted that "SFC 2013 settles its debt immediately with the council of 17,000 for ICT services previously delivered"; that "SFC 2013 makes a payment of 30,000 each year into the CVA to distribute to creditors"; that "SFC 2013 commits to honouring its Commercial Agreement and playing all of its home games at the City of Salford Community
Stadium"
; and that it "retains the club name"...


* Salford Council is also currently helping out Salford Red Devils with an advertising campaign to push tickets for the new season, using an image by Salford Star photographer, Gareth Lyons.

Steve wrote
at 17:19:52 on 11 November 2017
Not sure the Mayor had a choice, call in the loan, in which case the club will certainly have gone under, or give it more breathing space in the very unlikely event it can prove itself to be a going concern. With very low crowds , one crowd was 1400 last season, it is going to require more than a miracle to achieve sustainability. With the RFL opening its net to bring in teams from Europe and North America, the club will struggle to stay in the top tier anyway.

Bob wrote
at 12:27:09 on 10 November 2017
When Dr k took on that debt, no one else was interested in taking over the club. The club would have gone the same way as Bradford. It was skint. I do not know the details, but the deal was probably along the lines of that the money would be repaid when the club was generating enough revenue etc. Dr K is not stupid when dealing with money,especially when dealing with fools. If it had gone into liquidation, Salford Council would have got sweet FA. On top of that , with no rugby club,they would probably have had to flog the stadium as well, what would that be worth? a fraction of what they paid out for it. At least there is a chance they will get their money back, however slim that may be. Also, we still have our rugby club.This is the one thing left that is proud to use the Salford name.Just think about it,when you say the word WIGAN. What is the first thing that comes to your mind.Its not the place is it? Anyway, whilst we are on about the odd one point odd million or so, what about the one point odd million the clowns gave to Salix to house homeless people.How many homeless, and I mean homeless,people have Salix housed with this money?The Star should get to grips with this one. This money they have been given is from a government fund to help the homeless. It is given to councils to dish out for this purpose. The Star should put it to Salix to say how many people has been housed. I am not going to shut up till I get the answer.

kenneth mozley wrote
at 19:14:17 on 09 November 2017
absolutely disgraceful decision by mayor who would not be doing it if it was is own personnel money. with all the cut backs he as agreed in Salford he still props up a club that will eventually go to the wall through lack of public support that should tell him something DISGUSTING DECISION

Please enter your comment below:
 
 
 
Giraffe
Salford Star contact
Deli Lama
advertisement
 
Contact us
phone: 07957 982960
Facebook       Twitter
 
 
Recent comments
article: 5MILLION RESTORATION PROJECT LAUNCHED FOR SALFORD CHURCH OF ASCENSION
Fantastic news. A beautiful building being brought back from the ashes. A building of great historical interest. Hope the same ca... [more]
article: 5MILLION RESTORATION PROJECT LAUNCHED FOR SALFORD CHURCH OF ASCENSION
About time they coughed up the cash considering the church company doesn't pay tax...assuming it is the church paying. Hope it is.... [more]
article: BUILE HILL PARK HOUSING IS ONLY WAY TO SAVE SALFORD MANSION STATES DEVELOPER
I never suggested the costings had been workd out on the back of a beer mat if they had ,they would be a lot less than 4million. ... [more]
article: BUILE HILL PARK HOUSING IS ONLY WAY TO SAVE SALFORD MANSION STATES DEVELOPER
Ray I have not missed any point. if you look at my suggestions for use of the depot land, you will find I liked the idea by Mr Bre... [more]
article: BUILE HILL PARK HOUSING IS ONLY WAY TO SAVE SALFORD MANSION STATES DEVELOPER
Cody is right when he points out the 400 million cost of the Shard. It is 100 times the floor area of the mansion, so the actual ... [more]
 
 
 
 
 
Days
Hours
Minutes
Seconds
 
 
 

Donate

Help the Salford Star...

all donations welcome

 
 

More articles...

COMMUNITY CAROLS AT SALFORD SHOPPING CENTRE

Star date: 15th December 2018

CHARITY CAROLS FROM THREE CHOIRS

Carols at Salford Shopping Centre
Tuesday 18th- Thursday 20th December

Three choirs will be performing Christmas carols at Salford Shopping Centre this week, as Saint Phillips Chapel Street, Larkhill Community Primary School and Pendleton Community Choir rock the Precinct with yuletide wonder.

Full details here...

SALFORD RESIDENTS LAUNCH NEW SANTA PROTEST IN RESPONSE TO BELLWAY HOMES LEGAL THREATS TO STOP PROTESTS

Star date: 14th December 2018

AS BELLWAY THREATENS INJUNCTIONS AND FINES, SWINTON RESIDENTS RESPOND WITH SANTA PROTEST

"Saturday is the day for reminding Bellway that we have every right to peaceful assembly on a public footpath..."

Two weeks ago, Bellway Homes' solicitors wrote to the Saving Our Neighbourhood campaign - which is objecting to the company's mad construction of 241 houses off Campbell Road in Swinton - threatening injunctions and fines unless it wrote an 'undertaking' not to "interfere and/or attempt to interfere with Bellway's legitimate commercial interests".

In response, tomorrow at noon, residents will hold a special Santa protest at the site entrance..."It's vital that our community makes it clear that a threat from a multi-billion pound developer...will not scare us into signing away our democratic legal rights" states the group.

Full details here...

5MILLION RESTORATION PROJECT LAUNCHED FOR SALFORD CHURCH OF ASCENSION

Star date: 13th December 2018

GRADE 2 LISTED LOWER BROUGHTON CHURCH SEES TWO YEAR RESTORATION

A 5million two year restoration project was launched today for the Grade 2 listed Church of the Ascension which was badly damaged in a huge blaze back in February last year.

"It's the only old building left in Lower Broughton, so we think it's very important that we don't take people's memories away" Canon David Wyatt told the Salford Star a month after the fire. Now the church is set to rise from ashes.

Full details here...

THE MOODS PLAY MUSIC FROM THE NORTH AT BAND ON THE WALL

Star date: 12th December 2018

DON'T MISS THE MOODS AND CO THIS SATURDAY!

Music from the North
The Moods, Pleasures, Glove, Falling Ghosts and DJ Stephen Doyle
Saturday 15th December from 7pm
Band On The Wall 10

This Saturday, there's another brilliant Music from the North gig at Band On The Wall hosted by A1M Records, with Salford Star Best Band Award winners, The Moods and a full line-up of upcoming talent. Ian Leslie catches up with Paul Travis of A1M Records to get the gen.

Full details here...

SALFORD PANTO ON THE PARK IN LOWER BROUGHTON

Star date: 11th December 2018

SALFORD CINDERELLA PLUS DANCE TROUPES AND STALLS

Panto On The Park
Sunday 16th December 12noon-3pm
Green Grosvenor Park, Lower Broughton (suggested donation 1-2)

This Sunday, 16th December, Up Ere Theatre Group will be performing their own version of Salford's Cinderella in a heated marquee at Green Grosvenor Park in Lower Broughton. There'll also be performances from dance troupes Salford Aces, Urban Angels and JD Dance, plus lots of stalls, face painting and more.

Full details here...

 



written and produced by Salfordians for Salfordians
with attitude and love xxx