Details of a £1m loan made to Salford by their local council have been revealed, together with news that naming rights to their new stadium have been sold to co-tenants Sale Sharks.
The Reds have endured a turbulent season, which ends in typically troublesome circumstances later today then they play a “home” game against Wakefield Wildcats at Leigh Sports Village, due to the unavailability of their Salford City Stadium home, much to the annoyance of the club’s fans.
Wakefield’s involvement in the play-off race saw the game moved to accommodate SKY television coverage, and with Sale due to play their first home game at the new ground this evening, Salford were forced to look elsewhere.
Sale, who came on board as second tenants earlier in the summer to halve the Reds’ rent bill from £750,000 a year, are now believed to have secured naming rights to the stadium, which means they could sell it on to a potential sponsor.
Financial worries surrounding the Reds appear to have been confirmed by news of a £1m loan from Salford Council, which the club must pay back at a rate of £50,000 every three months until March 2017.
That news is likely to explain the sale of scrum half Matty Smith to Wigan in July, just days before the first re-payment was due.
According to the Salford Star, the £1million loan is secured on property owned by Godliman Watson Homes and a personal guarantee from directors, plus six Harold Riley paintings, and the club must not enter in to any merger or reconstruction, which would make entering administration and seeing the club bought by a new company, ala Bradford Bulls, difficult.
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