Salford Red Devils financial update - player sales and Super League concerns explained

Salford Red Devils asked clubs to approve an advancement of central funding to the tune of £500,000 yesterday. The financially challenged Super League club are trying to navigate through fresh cash flow problems which, if they aren't addressed, could see them fall over before the end of the year.

Club CEO Paul King discussed the matter with his Super League counterparts on Thursday, outlining the club's position and why they have found themselves in need of help. Essentially, King explained that their latest issue stems from the fact that revenue streams they had hoped would be activated from Salford City Council's takeover of the stadium have not materialised, leaving them in their current position.

However, it's understood there were concerns about the detail provided, which didn't give assurances regarding the long-term financial viability of the club. In the end, it was decided that they would reconvene on Monday to allow King time to provide further details that could provide reassurances over their future.

READ MORE: Leigh Leopards forward confirms immediate retirement as explanation given

READ MORE: Warrington Wolves duo head to Australia with new club confirmed

One of the biggest concerns within the room was the size of the figure Salford had requested. King explained that £500,000 was needed to cover wages and revenue, with almost half of that figure understood to be on the latter. Clubs receive around £110,000 per month in central funding, meaning Salford are asking for almost 38% of their distribution ahead of schedule.

In the last 18 months, Salford has received three six-figure transfer fees from the sales of Tyler Dupree, Brodie Croft and Andy Ackers, as well as a cash injection of £364,270 from a Community Share Scheme, largely generated by supporters.

Furthermore, a freedom of information request showed the club had received three different payments in the last two years from Salford City Council—a loan worth £40,440 in December 2022, a £175,000 loan in February 2023, and a £315,000 grant in March 2024.

King stated in the meeting that loans had been taken out to help fund the club but despite all of that, it still needs more. That is fundamentally the biggest concern as it has left many questioning the club's viability, even if the revenue streams the club is anticipating from the stadium deal come to fruition given the current state of the club's finances.

This is where Super League has asked King to provide further financial detail as what was declared on Thursday wasn't deemed sufficient enough to alleviate concerns. One source said giving Salford the money would be like "trying to stop the Titanic sinking with a plaster."

Another frustration is the fact that Salford have recruited extensively for the 2025 season despite their ongoing issues, with the likes of Esan Marsters and Chris Hill among their new signings. King explained that deals were done in view of the stadium deal being completed but others have pointed out that Joe Bullock and Justin Sangare were only signed last month. Those who have spoken to Rugby League Live do not believe that Salford could not have been aware of their potential financial issues at the point of signing them.

The notion of selling players to other clubs was addressed but King stated that it was counterproductive, citing that the sales of Croft and Ackers last year had a derogatory impact on season card sales so was a route the club did not want to pursue. However, counterparts in the room made it clear that was not an acceptable stance and was something they would need to consider.

An outcome is expected on Monday. Salford issued a statement saying an adjournment had been agreed "to allow more time to consider the documentation provided", though people in the meeting have claimed this isn't accurate, and it was instead done so the club could provide more detail.

Click here - Get the latest news on our Rugby League Live WhatsApp channel