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Salford ordered to sell stars as cash crisis means £800k drop in budget

Nene Macdonald has revealed how a change of mindset towards living in England is resulting in his brilliant Salford form
SWPIX.COM

SALFORD are set to lose several stars after being ordered to conduct what is effectively a fire sale.

A cash crisis means the Red Devils must slash £800,000 from their overheads before they can even think about signing anyone.

Salford face an effective fire sale after being ordered to slash costs
SWPIX.COM

Salford received an advance of their central distribution from RL Commercial to cover a black hole caused by the city’s council pulling a subsidy control grant, meaning ‘enhanced special measures.’

As a result, it looks like a number of Paul Rowley’s stars may be heading out, with Marc Sneyd, Kallum Watkins, Jack Ormondroyd, Nene Macdonald and Deon Cross being at the top of other clubs’ shopping lists.

Leigh lead the chase for the half back star, while the captain could return to Leeds. Castleford want the prop, Hull KR the centre and Hull FC the winger.

There is also talk of the Leopards looking at Joe Shorrocks, although a decision to refuse salary cap and quota dispensations by other Super League clubs for Salford players narrows the chances of a bidding war, meaning more players may head out to balance the books.

Salford said in a statement: “The club has been directed to sell players without delay.

“The position is the RFL has issued a sustainability cap of £1.2 million and until we reach that, we are now prohibited from registering players for the upcoming season.

“The terms of receiving the advancement were that the club be placed under ‘special measures’ requiring a reduction in overheads of £800,000.

“We were not given a clear timeline for compliance on required expenditure reductions, therefore the club took the decision to hold our position for the short-term while investor negotiations are ongoing.

“During this time, the club has received offers for a number of players, none of whom have been available for sale until today.”

Salford remain in talks with an Australian consortium looking to take them over, with the hope a deal can be done by the start of the Super League season next month.

But this is the culmination of years of keeping the wolf from the door, mainly because of a previous stadium agreement that denied them many revenue streams, even money from food and beverages sales at matches.

Delays in getting the city council’s stadium deal done have contributed to this situation

Salford City Council’s deal to buyout partners Peel will open them up but the 10-months between its announcement and completion cost the Red Devils one investor and three shirt sponsorship deals.

And with Christmas coming so soon after contracts were signed, the club has been unable to get the ball rolling immediately – including getting a giant advertising screen which would face the neighbouring M60 motorway, with all money going to them, installed.

Salford added: “Investor negotiations continued over the weekend as part of the lengthy, rigorous process to secure a takeover for the club.

“This is still live and we are working to expediate, details of which we can’t disclose given the non-disclosure agreement in place.

“One investor negotiation collapsed due to the investment risk of not having any confirmed position from the council on when the stadium acquisition would be finalised – an example of the delicate negotiating position we find ourselves in.

“In March, it was suggested by Salford City Council the club could receive a subsidy control grant to support rugby league and the rugby development pathway in the city of Salford and Greater Manchester.

Marc Sneyd tops the list of players being lined up for moves to Salford’s rivals
SWPIX.COM

“In November, Salford City Council advised that the subsidy control grant was not available due to funding shortfalls elsewhere, the impact of which was that the club had already committed funds to player and staff recruitment and paid for pre-season preparations including a warm weather camp in Portugal.

“Effectively, these projected funds had already been allocated.

“We believe we have acted in the best interests of the club, players, staff and our fans, given the complex situation we find ourselves in with multiple dynamics in play.

“We empathise and understand the frustration of our fans and are deeply sorry to reach this position.

“Our focus remains in working to explore all avenues possible for the long-term stability and success of Salford Red Devils.

“Immediate next steps are to continue the potential takeover process to secure investment as soon as possible, whilst now simultaneously selling players to meet RL Commercial regulations.”

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