Star date: 8th September 2015

MARWAN KOUKASH GETS 17 MONTH PAYMENT HOLIDAY ON COUNCIL LOAN

Salford Red Devils owner, Marwan Koukash, will not have to pay Salford Council anything for 17 months, under the new terms of a creditors' agreement relating to the old Salford Reds £1.5million loan, the Salford Star understands.

Meanwhile, last night, listeners of The Sounds of Salford Radio station heard further allegations of players and staff not being paid properly by the Salford Red Devils.

Full details here...

In August, the Salford Star reported a new £857,000 loan from Salford Council to its joint venture Stadium company, and a `variation' in the terms of repayments of the £1.5million debt from the old Salford Reds company that new owner Marwan Koukash took on (for full background see previous Salford Star article – click here).

When Koukash took over the club, he stated that he would pay back the £1.5million to the Council, plus over £1million to other creditors, including the Council's joint venture stadium company (£82,424) and Peel Holdings (£372,000).

Terms were drawn up in a CVA, or Company Voluntary Arrangement, under which Salford Council would receive 4/25ths of what it was owed - a total of £253,291 - by 2018, with the rest of the debt - £1.33million – spread until 2038, interest free.

In early summer, Koukash held a press conference alleging he was owed money by Salford Council (£750,000) and stating "Our club pays in the region of £300,000 to £400,000 a year to the old debt...That includes the Council's debt. That's not going to bloody continue. `Mr Mayor and Mr Deputy Mayor you have personal guarantees against the people you've loaned the money to – go after them. Stop taking money out of our club'".

Nothing further has been heard of the £750,000 that Koukash said the Council owed him, but a meeting of creditors held, according to the Council, on 7th August "reschedules payments from the Club to the Council". The Salford Star now understands that the `reschedule' was for a complete payment holiday of 17 months for all payments to creditors, including Salford Council, by Koukash.

The Salford Star asked Salford City Council to confirm or deny the 17 month payment holiday but no response was forthcoming.

Meanwhile, last night, on The Sounds of Salford Radio, further allegations were made about Salford Red Devils players and staff not being paid properly. A player on loan from Featherstone still waiting for half his wages; another player having to threaten the club to get his money... "There is supposed to be a welfare officer there...what is he doing? And what is Marwan Koukash doing not paying the players?" asked presenter Simon Williams "Those players are training their hearts out week in week out...and without doubt the Salford fans are the best in the world, bar none...

"Mr Koukash" he added "...you cannot run my club, and the fans' club, like this...you are bringing my club and the fans' club into disrepute and you're making us the laughing stock of rugby league..."

To listen to The Sounds of Salford broadcast – click here (17 minutes in is the Salford Reds chat)