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:
 
 
 
Salford Star Hoodies
Salford Star contact
Deli Lama
advertisement
 
Contact us
phone: 07957 982960
Facebook       Twitter
 
 
Recent comments
article: £7MILLION CYCLE AND WALKING ROUTES FOR SALFORD ANNOUNCED
It is good to know we have a bolshevik commisar for cycling. What good advice does he have for people riding near tram tracks?.Per... [more]
article: HARROP FOLD HEAD SLAMS ‘PERSONAL VENDETTA’ OF SALFORD CITY COUNCIL
@Bob - he resigned not made redundant so the council would have paid him a total of £0. For some reason he seems to think he'd b... [more]
article: CLADDING AND WINDOW SAFETY SCARES AT SALFORD BLOCKS
You would think by now, the residents would have had the good sense to work out that however much they complain, there is nothing ... [more]
article: CLADDING AND WINDOW SAFETY SCARES AT SALFORD BLOCKS
As ive said before. If the landlords in Salford are SO BAD. MOVE....... make your life netter. its called personal responsibility.... [more]
article: £7MILLION CYCLE AND WALKING ROUTES FOR SALFORD ANNOUNCED
I thought that's what pavements are for! The designated cycle lanes around higher Broughton and kersal are clearly only there to a... [more]
 
 
 
 
 
Days
Hours
Minutes
Seconds
 
 
 

Donate

Help the Salford Star...

all donations welcome

 
 

More articles...

£7MILLION CYCLE AND WALKING ROUTES FOR SALFORD ANNOUNCED

Star date: 20th September 2018

MONTON, SWINTON AND TRINITY WAY TO GET NEW CYCLE PATHS

Transport for Greater Manchester has announced a plan for £7.1million worth of cycle paths and walkways in Monton, Swinton and Trinity Way, with Salford City Council contributing £1.2million towards the total cost.

"The people of Greater Manchester will soon have a genuine choice in how they travel, ensuring that they and their children have a viable and attractive alternative to the car" says Chris Boardman, Greater Manchester Cycling and Walking Commissioner.

Full details here...

HARROP FOLD HEAD SLAMS ‘PERSONAL VENDETTA’ OF SALFORD CITY COUNCIL

Star date: 19th September 2018

DREW POVEY ACCUSES SALFORD COUNCIL OF 'HEAVY HANDED' 'VENDETTA'

"I'm speaking up for myself but also all the leaders who have been in touch to say the same happened to them #TakeAStand..." Drew Povey

Drew Povey, the Executive Head of Harrop Fold in Little Hulton, has resigned from his post, slamming Salford Council's "heavy handed approach" while investigating 'administrative errors' at the school and accusing it of a "personal vendetta".

In an open letter to the school's governors, Drew Povey writes that he refuses to walk away from the school with a settlement and accept a gagging clause.  So he's gone public...to #TakeAStand.

Full details here...

SALFORD BIG HEALTH DAY FOR ADULTS WITH LEARNING DISABILITIES

Star date: 18th September 2018

BIG HEALTH DAY AT SALFORD CITY FC

Big Health Day
Thursday 20th September 10am-2:45pm free
Salford City FC Moor Lane

This Thursday there's the 9th Annual Big Health Day for adults with learning disabilities, their carers and support staff at Salford City's ground on Moor Lane, with  workshops, activities, information stalls and mystery prizes.  

Full details here...

CLADDING AND WINDOW SAFETY SCARES AT SALFORD BLOCKS

Star date: 18th September 2018

WHY ARE PENDLETON RESIDENTS NOT BEING LISTENED TO?

"The housing provider has lost the good will of residents through their many failings and deafness when it comes to the residents' concerns..."

Windows about to fall out...dodgy cladding...secret safety reports and loads more going on at the Pendleton Together blocks near Salford Precinct.

Here, in the first of a two part feature, Graeme Langton, the suspended but elected chair of Malus Tenants and Residents' Association, writes about multiple problems residents are facing and suggests some solutions for Salford City Council to ponder.

Full details here...

PUBLIC SECTOR WORKERS IN SALFORD WOULD HAVE TO SAVE FOR 17 YEARS FOR A DEPOSIT ON A HOUSE STATES UNISON REPORT

Star date: 17th September 2018

HOME OWNERSHIP JUST A PIPE DREAM FOR NURSES, TEACHING ASSISTANTS AND OTHER PUBLIC SECTOR WORKERS

A new report from public sector trade union, UNISON, concludes that low paid public sector workers like nurses, teaching assistants, PCSOs, cleaners and librarians will almost never be able to afford to own a home.

The shocking report produces figures for Salford that show these workers having to save for 17 years just to get a deposit together for a first time house.

Full details here...

 



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