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SALFORD COUNCIL’S AJ BELL STADIUM RECORDS £5.2MILLION LOSSES
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Star date: 19th January 2015 SALFORD COUNCIL LOOKS SET TO HAND STADIUM ANOTHER £1MILLION "The directors have...received comfort from the directors of Salford City Council that the necessary level of support will be provided to the company" Stadium accounts 2013-14 Salford City Council's AJ Bell Stadium, a joint venture with Peel Holdings, has recorded a loss of £5.2million according to its latest set of accounts released last week. The Stadium also has current net liabilities of £2.257million, which means that unless something spectacular happens Peel Holdings and cash-strapped Salford Council will have to put another £1.1million each into the company before December 2015. Full details here...
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Salford Council's AJ Bell Stadium, a joint venture with Peel Holdings, has continued to make huge losses according to the company's latest set of accounts for 2013-14, released late last week. The City of Salford Community Stadium Ltd (sic) recorded a `loss for the financial year' of £5,236,745. The Stadium itself, the `operational asset', is now valued at only £3,904,001, down from £7,649,000 the previous year, and ridiculously down from its value of almost £19million in 2011. Apparently the low value of the Stadium is worked out on the low level of income it is generating. The Stadium was built with a £22million loan from Salford Council. The accounts state that a £20,803,940 `development loan' is still owed, on top of £1,084,000 in other loans the Council has provided (see previous Salford Star article – click here). Against these losses and loans, sits the land around the Stadium. This has been re-valued by Peel's in-house surveyors and has, remarkably, gone up in value by £2,679,423 making it now worth £17,734,173, up from £15,054,750 last year. Last June, Deputy Mayor David Lancaster told a Salford Council meeting that the Council had interest for 1.3acres of the land around the Stadium, which was believed to be from Greene King for a pub/restaurant... "If the sale comes off we won't be needing any more loans" he said. Seven months later, and no announcement has been forthcoming from the Council about any sales of land.* Indeed, the accounts record `current net liabilities' of £2,257,809, which apparently means that, unless some of the land is sold, cash-strapped Salford Council (and Peel Holdings) will have to loan the company over £1million during the 21 month period from April 2014 until December 2015, a year after the accounts were signed. The accounts state that "The directors have...received comfort from the directors of Salford City Council that the necessary level of support will be provided to the company". Altogether, with the re-evaluations, de-evaluations, trading losses and loan repayments, the Stadium company has a `closing shareholders deficit' of £4,353,284 – up from a `deficit' of £1,795,962 the previous year. What is not mentioned in the accounts is the costs related to Salford City Council's involvement with the Stadium which are not being re-charged to the company, like the secret subsidising of match day costs up to £164,000 which led to a huge scandal last year (see here) and the Salford Council staff member who, the Salford Star understands, is permanently based at the Stadium. Such costs are not reported in the `related party transactions' section of the accounts. If they were, the losses would be even greater...
• Update: 20th January... Greene King has now been in contact and a spokesperson said: “Pending approval, we hope to build a brand new Farmhouse Inn in Barton with a view to opening later this year. Our Farmhouse Inns have a great reputation for serving tasty carveries, delicious homemade cakes and cask ales. As well as creating approximately 65 full and part time jobs in the community, this new restaurant would give the people of Barton fantastic food and service, more choice and a very warm welcome.” While this is welcome news for Salford, and based on this being a 1.3acre site out of 17acres which have a total value of £17,734,173, it would still leave the Stadium with a large deficit to be made up this year.
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Garrick Out wrote
at 19:54:50 on 25 January 2015 |
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| The Broughton Talent show that was also covered by Salford Online?
http://www.salfordonline.com/localnews_page/52918-alan_henning_fundraiser_in_broughton.html
And you call the council for lies! |
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Salford Star wrote
at 14:11:11 on 25 January 2015 |
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| See Garrick Out comment below... We'll treat that with a mirrored contempt. Absolutely nothing to do with a free ticket, just no information. We also covered an Alan Henning tribute/fundraising night that no other publication in the city covered because it wasn't as `glamorous'. So let's not go down that route eh? |
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Garrick Out wrote
at 14:07:08 on 25 January 2015 |
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| So you wouldn't attend or publicise a charity event for someone who many regard as a local hero because you weren't offered a free ticket?
Says it all about this publication really. |
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White wrote
at 14:04:59 on 22 January 2015 |
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| The average attendance to watch Salford is under 5000, to watch Sale in the same stadium is just over 6000.
So it appears. Andrew Reid, that the people of Salford do not want to get off “their lazy behinds” [your words not mine] and support the club.
So are we, the people of Salford, paying to subsidise the pleasure of a few thousand people?
In a socialist country we expect to pay to support the essential needs of others, but not their optional pleasures when the country and the city is having economic problems. |
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Andrew Reid wrote
at 05:38:33 on 22 January 2015 |
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| PS....to sort this whole nonsense, why doesn't the council simply sell the stadium to Marwan Koukash for eff's sake?? |
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Andrew Reid wrote
at 05:38:30 on 22 January 2015 |
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| Hey Bernard Brough, if the people of Salford got off their lazy behinds are started SUPPORTING the "crappy sports clubs" instead of waffling on with identities from across the River Irwell/Ship Canal then maybe these "crappy sports clubs" would be having capacity crowds at games eh?
Ever thought of that??
Didn't think so..... |
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Bernard Brough wrote
at 13:01:41 on 21 January 2015 |
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| "Mr End" first name "Bell" probably. Sorry couldn't resist. Maybe if the Council did something positive, good or righteous for the people of this city the Salford Star would report it. Unfortunately the council cut services for the weak and vulnerable while giving money to crappy sports clubs and blowing cash on fountains and pea farms. |
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The End wrote
at 07:42:52 on 21 January 2015 |
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| Garrido out, don't go upsetting the star, you should have realised by now they don't report on anything positive. They are as bad as the council at running Salford down, and as for their reply, the last line is laughable |
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mary robson wrote
at 15:23:57 on 20 January 2015 |
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| Transport for vulnerable people has been stopped, even though the annual cost is just over £650,000 a year, yet Salford City Council just keep throwing tax payers money away. Many other services are being cut, even children's services. Shame on the people responsible. I know that cuts are inevitable, but why are only the needy being affected? I couldn't care less about fountains, bridges, rugby clubs etc. I care about people, especially those in need. Surely that's how every caring, normal human being feels? |
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noreen bailey wrote
at 06:42:55 on 20 January 2015 |
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| mr stewart can you not see what you are doing to our beautiful city, you are ripping the heart out of it. We have never asked for much but have got much less. When you get up in the mornings you are able to get ready and have your breakfast without a thought, you are able to drink a cup of tea or whatever is your preference ,you are able to read what your agenda for the day is and to get into your car without a thought or care in the world ,you arrive at work and don't have to think will I be able to park, you have no problems climbing the stairs in your work place ,do you ever stop and think just how lucky you are, yet you have the bare face cheek to take all our services that allow us the chance to have the freedom that you have, and you also take the independence that those services give our elderly, our special needs sons and daughters our homeless and those too tired to fight. Many of our most vulnerable don't have a voice mr stewart I can not bring myself to put capitals to your name but please let me state that SALFORD PEOPLE will stand up and fight for their rights and give them back all the opportunities that you have the privilege to have.
from one very irate mum |
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Salford Star wrote
at 06:41:46 on 20 January 2015 |
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| See Garrido Out's comment below - firstly Mr Out, was Salford Star scaremongering when the Council secretly handed out £164,000 to Salford Reds which should have been going to the Stadium last year? Secondly, these figures are all taken directly from the Stadium's accounts - how can they be `lies'? And thirdly, did the Salford Star receive a press release or press invite to the Alan Henning match? No. We don't go where we are not invited. |
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Garrido Out wrote
at 06:32:07 on 20 January 2015 |
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| More lies and scaremongering about what the council may or may not have to do in the future, whilst the Alan Henning memorial game yesterday goes unreported.
How depressing. |
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Anthony Dowd wrote
at 06:31:12 on 20 January 2015 |
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| As usual with Ian sewer Rat and his cronies at Salford Council - MORE LOSSES AND LIES.
Will we EVER learn the truth from these people.
MORE cuts to VITAL services and they GUARANTEE MORE payments to a stadium that is going down the pan.
You played a blinder there you fat Scottish numpty. |
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Michael Felse wrote
at 06:30:43 on 20 January 2015 |
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| I suggest Salford Councillors "sell" the Council's remaining Development Loan value onto Edge Funders in the form of asset-guaranteed future debenture shares. Pitching sale at 60p in the £, this loan outstanding value of £20million would create a nice £12million injection into Salford Council; enough to safeguard vulnerable people services and makes a surplus cash possible to reinvigorate Sports in Salford by a Fit, Healthy and Well-being Professional Sports Training Academy that secures a Flagship Future for Salford. |
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David cameron wrote
at 06:30:22 on 20 January 2015 |
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What's the betting when the stadiums valuation drops to about £1million ether kukash or peel will buy the stadium from the council resulting with the council tax payer losing £ 22million, and then some wanker like Lancaster or merry coming out spinning that they have done us a favour, buying it off or hands. Time to pull this heap of shit down and build houses on it, this stadium is just going to suck more and more of our valuable money down the black hole and in to someone back pocket. Time to spend money on valuable services instead of this white elephant. |
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