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SALFORD CITY REDS BAILED BY COUNCIL
 

Star date: 15th January 2010

A Salford Star Exclusive

SALFORD REDS GET £350,000 FROM COUNCIL!

Salford City Reds rugby club has been handed a loan of £350,000 by Salford City Council. This on top of the £20million loan that Salford Council is understood to be taking out to build the Reds new stadium in Barton.

But what is the £350,000 to be used for?

Full story here…


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."

Yet, as has been previously revealed, Salford City Council is already setting up a Joint Venture Company with Peel Holdings and has agreed to take out a possible £20million loan for the new stadium's construction. At this present time the Reds don't actually have a stadium to move into, and the carefully worded statement from John Merry …`helping them see their way into 2012' doesn't really mean anything.

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.

Long suffering Salford City Reds fans, who have witnessed numerous disappointments in connection with the new stadium, will be asking what security the club has going into the future, and about the current financial situation of the club, as a new season begins.

John Merry added "Salford City Reds is a premier league club and its presence plays an important part in the city's economy and its future.

"The club puts a lot back into our communities and works tirelessly with young people and schools and we will support it like any other organisation that benefits the city in such a way."


 

julian caine wrote
at 7:31:48 AM on Tuesday, January 26, 2010
i notice now the salford advertiser is censoring comments on its website perhaps they was getting near to the truth/cover up over the reds finances
 
Mike Skeff wrote
at 1:37:31 PM on Tuesday, January 19, 2010
Yet again this is no surprise to me. Merry and Wilkinson seem to think they have a free hand with Salford taxpayer's money. Salford City Reds is indeed in a very unfortunate situation both on and off the field, but it is up to Wilkinson and his business contacts to get their financial house in order. The club's playing staff do a lot of good work in the community, as do other clubs in theirs, but to say it's good for the local economy is quite untrue. Attendance figures at the Willows have been poor for a long time and travelling fans go to the game and leave, spending very little at local outlets. John Merry is a fan of using snippets of well known rhetoric; seems to make him think people believe what he says. On a personal note for Salford council, (we know you read this) give funds to things that do benfit the community, such as this magazine.
 
julian caine wrote
at 11:54:20 AM on Sunday, January 17, 2010
if the council are giving loans out i'll have one and build a 50 foot high wall around hazel blear's house so we dont have to look at that smile and with whats left give it to swinton rlfc who need it just as much and whom have council tax payers too there is no assets left to pay the loans back either so what happens if salford rlfc go out of business is mr merry and his cronies going to pay it back???
 
COMMUNITY ACTIVIST wrote
at 4:26:11 PM on Saturday, January 16, 2010
I am a little confused with this. The land at the willows was sold some time back,so where has that money gone. Who gave the go ahead for this loan in the first place and how many more loans like this are the council handing out.We have major projects within each community in Salford that could do with £350.000 but keep getting knocked back,because we are told there is not enough funding. If watson/ Wilkinson haven't got the funds for their club, how the hell are they going to fund the hotel in Buile Hill Park. I know, GET A LOAN FROM THE COUNCIL.
 
Barton Upon Hope? wrote
at 1:31:01 AM on Saturday, January 16, 2010
The club really needs to start becoming transpaprent with the plans and agendas regarding the whole Barton fiasco and the financial situation. I also feel its time new blood was in the backroom with people liek David Tarry given his cards. The club has gone nowhere under his CEO authority.
 
Brian F Kirkham wrote
at 4:14:31 PM on Friday, January 15, 2010
Excuse me, Salford Council already fund the rugby team as a shirt sponsor - where's this money going? I understand whats going to happen to the willows when the reds leave for Barton, GW Homes will turn it into some sort of development - thats understood..but is the money gained from there going directly into funding Barton? Its Normal business practice to state your intentions for the incoming investment in a club - and in this case it hasn't happened. £350,000 of Council Tax Payers cash going into Mr Wilkinsons Club ? - Didn't he recently drop an application to turn Buile Hill Hall into a Hotel complex in the midst of a public park..? Im sure if he can raise the capital for that project, he can raise money for his own rugby club!
 
john wrote
at 4:13:59 PM on Friday, January 15, 2010
the salford star works tirelessly for the community and works with young people but i dont see any support going there way i wonder why not perhaps mr merry would like to comment
 
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