Post subject: Reds borrowed £350,000 loan from Salford Council
Posted: Fri Jan 15, 2010 8:15 pm
Chico
Moderator
Joined: Feb 24 2002 Posts: 7498 Location: Salford
Salford Star wrote:Salford City Reds has received a £350,000 loan from Salford City Council, yet the Council isn't disclosing in full what the loan is for. There are rumours that the money is being used for ongoing costs at the club, which would suggest that the Red Devils have serious financial problems.
When asked to confirm whether the loan was to pay wages, Salford Council Leader, John Merry, didn't deny it. But would only say "We're committed to ensuring the club sees its way into 2012 at its new stadium, and last year we provided a loan of £350,000 to them to help do this.
Meanwhile, the Reds don't actually own their current stadium at The Willows. It was sold to Godliman Watson Homes Ltd by the Wilkinson Corporation last year. So questions must also be asked about the collateral that has guaranteed the loan.
Salford Star wrote:Salford City Reds has received a £350,000 loan from Salford City Council, yet the Council isn't disclosing in full what the loan is for. There are rumours that the money is being used for ongoing costs at the club, which would suggest that the Red Devils have serious financial problems.
When asked to confirm whether the loan was to pay wages, Salford Council Leader, John Merry, didn't deny it. But would only say "We're committed to ensuring the club sees its way into 2012 at its new stadium, and last year we provided a loan of £350,000 to them to help do this.
Meanwhile, the Reds don't actually own their current stadium at The Willows. It was sold to Godliman Watson Homes Ltd by the Wilkinson Corporation last year. So questions must also be asked about the collateral that has guaranteed the loan.
Post subject: Re: Reds borrowed £350,000 loan from Salford Council
Posted: Fri Jan 15, 2010 9:05 pm
neil72
Player Coach
Joined: May 24 2007 Posts: 661
It would not suprise me if true as you look over the last 2 years we have made little in signings no progress on the stadium would give this articale some truth behind it. I would be intrested though to see how the club react to this or will they do what they always do and tell us supporters nothing. We have lost alot of good players last year and only made 2 signings i can see things getting worse. the hole picture before this article looked bleak in my eyes. I have been a supporter for years but lost intrest due to stadium not being done and the club just dont come out and tell us the truth. I would not be supriesed if we dont get more stories about before long. it upsets me deep down and why i am only going to a choice of games and wont waste money on a season ticket as i cant see us finnishing other than last. this stadium keeps getting promised but why do they shurk the fans questions and dates keep getting put back each year.
Post subject: Re: Reds borrowed £350,000 loan from Salford Council
Posted: Fri Jan 15, 2010 9:53 pm
billybradshawsmum
Player Coach
Joined: Dec 07 2005 Posts: 2163
Think Salford Star have a gripe with Salford City Reds, but, as any news material it posts what it see's fit to print. The article states that there is no collateral for the asaid loan as the Willow's was sold to Goldiman & Watson. Who is a Director at Salford City Reds? I would think that was collateral enough.
The Council obviously see Salford City Reds as a good investment for the future with the "new stadium" on the brink of happening, & will see a return from it.
Post subject: Re: Reds borrowed £350,000 loan from Salford Council
Posted: Fri Jan 15, 2010 9:58 pm
The Original Red Devils
Player Coach
Joined: May 23 2008 Posts: 844 Location: City Of Salford
Were in the poop lets face it. Really can’t see us getting the stadium and surviving in the top flight any longer i don’t like to be negative but what else is there to be positive on. I really worry for the future of our club.
billybradshawsmum wrote:Think Salford Star have a gripe with Salford City Reds, but, as any news material it posts what it see's fit to print.
To be fair to Salford Star they are receptive and complimentary to the club in other areas — its community work, for example. I wrote a couple of pieces for the website earlier last season with my name attached. And I’m sure they’d be open for others to do similar.
Yet, it’s clear they have a beef with the Reds’ and John Wilkinson’s financial dealings. As an outsider looking in and, in Salford Star’s case, a new kid on the block, it is not hard to take a dim view. The sale of The Willows was done on the quiet, an allegedly huge pile of taxpayers money is going into a club that doesn’t feature on the radar of most Salfordians (many of whom probably consider themselves as Mancs) and the announcement of Red City Developments entering into administration was released days after the RFL granted us a Super League licence. And now this.
There’s a couple of ways at looking at the loan: One, the club is really struggling to get by — less than adequate crowds last season can’t have helped — and so are the directors’ businesses, we are in a recession after-all. Salford wouldn’t be alone here. Hull KR recently showed debts of £3 million with a £450,000 loss in 2008. Rumours abound that Wakefield are in similar schtum. Two, the money is essential for the new stadium project’s running costs. Consultancy, redesigns, legal fees — they all have to paid for. As the Council will be a key player in the stadium’s management, this reasoning wouldn’t be a surprise. That said, I’m guessing like just everyone else.
As a Salford City Reds fan, I’m glad the Council are backing us. They wouldn’t have done at certain times in the past. However, the way these stories have found their way into the public domain, there has to be a concern that outwardly the club will earn opposition from other Salfordians and furrow the brows of RFL administrators.
I think for all concerned, the sooner this stadium is built and up and running the better.
Early Bath wrote:Mischievous article and worded as such. Chico Do you know who wrote the piece?
billybradshawsmum wrote:Think Salford Star have a gripe with Salford City Reds, but, as any news material it posts what it see's fit to print.
To be fair to Salford Star they are receptive and complimentary to the club in other areas — its community work, for example. I wrote a couple of pieces for the website earlier last season with my name attached. And I’m sure they’d be open for others to do similar.
Yet, it’s clear they have a beef with the Reds’ and John Wilkinson’s financial dealings. As an outsider looking in and, in Salford Star’s case, a new kid on the block, it is not hard to take a dim view. The sale of The Willows was done on the quiet, an allegedly huge pile of taxpayers money is going into a club that doesn’t feature on the radar of most Salfordians (many of whom probably consider themselves as Mancs) and the announcement of Red City Developments entering into administration was released days after the RFL granted us a Super League licence. And now this.
There’s a couple of ways at looking at the loan: One, the club is really struggling to get by — less than adequate crowds last season can’t have helped — and so are the directors’ businesses, we are in a recession after-all. Salford wouldn’t be alone here. Hull KR recently showed debts of £3 million with a £450,000 loss in 2008. Rumours abound that Wakefield are in similar schtum. Two, the money is essential for the new stadium project’s running costs. Consultancy, redesigns, legal fees — they all have to paid for. As the Council will be a key player in the stadium’s management, this reasoning wouldn’t be a surprise. That said, I’m guessing like just everyone else.
As a Salford City Reds fan, I’m glad the Council are backing us. They wouldn’t have done at certain times in the past. However, the way these stories have found their way into the public domain, there has to be a concern that outwardly the club will earn opposition from other Salfordians and furrow the brows of RFL administrators.
I think for all concerned, the sooner this stadium is built and up and running the better.
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot post attachments in this forum
