Salford Red Devils winding-up petition latest as salary update provided
The Salford Community Stadium, the home of Salford Red Devils
A winding-up petition filed by HMRC against Salford Red Devils has been successfully adjourned by the club’s representatives.
The Red Devils’ immediate financial future appeared under threat following a petition to settle unpaid debts to HMRC in the region of £600,000. Had that gone through, it remained eminently possible the club would cease trading.
But Salford are on the verge of securing a crucial multi-million pound bridging loan which could transform their short and medium-term fortunes. It has been described as being ‘days away’ to Love Rugby League.
And in the immediate term, that proof of funding has satisfied HMRC and the courts that the debt will be settled, leading to the petition being adjourned until September.
It will also ensure Salford’s staff and players are paid for June – and Love Rugby League it has been communicated to all parties already that payroll will be delivered when the bridging loan lands in the coming days.
However, the club’s ownership group are desperate to unlock significant funding that is likely to safeguard the club for a prolonged period. It is currently locked and will only be released when Salford have cleared debts to the likes of HMRC and the Rugby Football League.
Should they be paid and the debts settled, there has been long-held optimism that millions of pounds will be released to allow Salford to stabilise. But there is perhaps understandable scepticism over that prospect given the lack of tangible progress made by the club’s new owners since the takeover.
But in the short-term at least, Salford have appeared to stave off financial disaster again.
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