Executive Chairman Paul King, along with commercial director George Harborne, has made his introductions and has thanked everyone in attendance at tonight’s Fans Forum event, regarding ownership and our future at the AJ Bell Stadium.
Interim strategic director for Salford City Council, Pete Openshaw, is present.
Paul is now providing context and background information of recent conversations regarding the AJ Bell Stadium.
Our Executive Chairman is now outlining that COSCOS, the stadium holding company, are keen to sell the stadium due to ongoing working capital investment requirements.
COSCOS has received firm interest from a party seeking to require the stadium. However, that party will not make an offer until the future of our club is secure.
Salford Red Devils have attempted to put together a bid to purchase the AJ Bell Stadium, but it is not financially viable for the club.
Paul is now talking about our revenue sources, outlining that central distributions, linked to the broadcast agreement, are reducing from the 2022 season.
He has also outlined that club commercial revenue requires considerable development and this is being addressed.
The final revenue source is player trading. However, this can’t be relied upon because the market is unpredictable and requires us to trade our best players.
Paul is now outlining that during planning the AJ Bell Stadium, the club budgeted for average attendances of 8000 to make it financially viable.
Pre-pandemic since moving to the AJ Bell Stadium, our average attendance has been 3365 and we have achieved attendances of 5000+ only 16 times out 143 games.
This gap in projected versus actual revenue, plus other factors, has meant that Salford Red Devils have never paid our contracted rent at the AJ Bell Stadium.
Any new owner of the stadium would, rightfully, want the club to honour its original contracted rent agreement.
The current rent agreement is due to expire in 2023 when it would become subject to renegotiation.
It is highly unlikely that renegotiation would result in a rent reduction based on market values.
It is highly unlikely that renegotiation would result in a rent reduction based on market values.
Paul is now moving on to outline the potential options that face the club. These are:
1.Remain at AJ Bell Stadium
2.Find a new home in Salford
3.Find a new home outside Salford
1.Remain at AJ Bell Stadium
2.Find a new home in Salford
3.Find a new home outside Salford
On staying at the AJ Bell Stadium, Paul has outlined that it is a good facility and incorporates our home ground, offices and training facilities under one roof.
However, staying at the AJ Bell is unaffordable without impacting the playing budget.
He states that any further reduction of our playing budget from its current position, would likely result in relegation from the Super League.
He states that any further reduction of our playing budget from its current position, would likely result in relegation from the Super League.
If the club was to be relegated from the Super League, it would lose its central distribution money, which in turn would mean defaulting on the rent agreement anyway and likely require us to become a part-time club.
Finally on staying at the AJ Bell, the 2023 expiration of the current lease agreement has the potential to lead to an increased rent position from 2023, which is also unviable.
On option two, finding a new home in Salford, Paul outlines that this could create a new long-term position for the club in the city and give us greater commercial freedom and ownership of revenue streams that don’t currently exist at the AJ Bell Stadium.
Any stadium in Salford would require a 5000 capacity as per RFL guidelines, and we would be required to secure new office and training facilities.
Paul states that Salford City Council are actively supporting the club in securing a new home in Salford.
Paul states that Salford City Council are actively supporting the club in securing a new home in Salford.
Paul now covers the final option of moving outside Salford. He states that moving outside the city would be to secure the club’s survival only and is a last resort. The club are engaged with Manchester City Council about potential venues, as a contingency plan.
Paul now moves on to discuss the plans and hopes for the future of the club. He starts by outlining his aspirations for what the club should be. Which is a: “Community centric, progressive and self-sustainable rugby league club competing at the highest level.”
The beginning of this journey is for the club to own its own base of operations. The aspiration is for the club to house an office space, training facilities and an academy with education facilities under one roof, to become the rugby league hub in Greater Manchester.
Paul now explains how the club and the Supporters’ Trust has had early conversations around fan ownership of the club via a community share option.
Salford are committed to fan ownership of the club in some capacity, with the mechanics of this currently being explored.
Salford are committed to fan ownership of the club in some capacity, with the mechanics of this currently being explored.
Paul explains that as a fan himself of many decades, he understands the passion of the fanbase and the need for the club to be at the heart of the Salford community, and that community ownership is a big step towards helping to achieve that goal.
Paul’s hope that the community share offering and fan ownership of the club, will result in fans having a stronger voice and understanding of the club’s operations moving forward. That concludes the presentation. Q&A to follow.
Q&A:
Why can't we attract a major investor?
George Harborne: When it comes to rugby league, we are at the pinnacle of central distributions in Super League. It doesn't get better than this, therefore it is hard to attract a major investor.
Why can't we attract a major investor?
George Harborne: When it comes to rugby league, we are at the pinnacle of central distributions in Super League. It doesn't get better than this, therefore it is hard to attract a major investor.
Q&A:
Will we be playing at the AJ Bell Stadium next year?
PK: Yes, we will be playing at the AJ Bell Stadium up until at least the end of the 2022 season.
Will we be playing at the AJ Bell Stadium next year?
PK: Yes, we will be playing at the AJ Bell Stadium up until at least the end of the 2022 season.
Q&A:
Will we be paying rent to Sale Sharks?
PK: If Sale become the new landlords of the stadium, rightfully, they would want the club to honour its original contracted rent agreement. However, they have said they won’t make an offer until we’ve got somewhere else to play at.
Will we be paying rent to Sale Sharks?
PK: If Sale become the new landlords of the stadium, rightfully, they would want the club to honour its original contracted rent agreement. However, they have said they won’t make an offer until we’ve got somewhere else to play at.
Q&A:
Are there any grounds to look at?
PK: I had a meeting with Gary Neville on Monday. Gary wants to help. Whether Moor Lane would pass RFL criteria, we don't know yet. Salford are one of the parties who are looking at buying the stadium.
Are there any grounds to look at?
PK: I had a meeting with Gary Neville on Monday. Gary wants to help. Whether Moor Lane would pass RFL criteria, we don't know yet. Salford are one of the parties who are looking at buying the stadium.
Q&A:
Why has land around the stadium not been sold to clear the debt?
PO: We hope the vast majority of the land is sold over the next three years. 16-20 million is what the land is valued at. 16 or 17 million will remain in stadium debt when that land is sold.
Why has land around the stadium not been sold to clear the debt?
PO: We hope the vast majority of the land is sold over the next three years. 16-20 million is what the land is valued at. 16 or 17 million will remain in stadium debt when that land is sold.
Q&A:
Have you thought about moving to Moor Lane?
PK: It is a possibility. Gary Neville does care about what happens to the original Red Devils. It's a better option than expecting the council to build another stadium, they've already done that for us before.
Have you thought about moving to Moor Lane?
PK: It is a possibility. Gary Neville does care about what happens to the original Red Devils. It's a better option than expecting the council to build another stadium, they've already done that for us before.
Council's response:
PO: Gary and the company he is a part of has a long lease at Moor Lane, so there would be discussions needed. That's where we can come in and help.
PO: Gary and the company he is a part of has a long lease at Moor Lane, so there would be discussions needed. That's where we can come in and help.
Q&A: What does the fan ownership scheme look like?
PK: There's dozens of options but as soon as we're good to go, we'll make announcements. We need to reach beyond just people who watch us, it needs to be better than that.
PK: There's dozens of options but as soon as we're good to go, we'll make announcements. We need to reach beyond just people who watch us, it needs to be better than that.
Q&A: If we have to leave our ground, is there an option to play at Moor Lane but train at the AJ Bell?
PK: There's an option there to train here and have our offices remain at the AJ Bell, whilst playing our home games at Moor Lane.
PK: There's an option there to train here and have our offices remain at the AJ Bell, whilst playing our home games at Moor Lane.
Have the council looked into using the stadium for other purposes to raise more funds?
PO: COSCOS own the stadium and it's Peel who run it day-to-day, they work really hard to make money. I'm not saying we couldn't do more but people do work hard to boost stadium funds.
PO: COSCOS own the stadium and it's Peel who run it day-to-day, they work really hard to make money. I'm not saying we couldn't do more but people do work hard to boost stadium funds.
George Harborne's response:
Even if the stadium does host concerts, events etc to make more money, that still would not answer the question on how we would pay the rent here when a new landlord takes over.
Even if the stadium does host concerts, events etc to make more money, that still would not answer the question on how we would pay the rent here when a new landlord takes over.
What support would the council offer to the city's only sports club that competes at an elite level?
PO: We want to do everything we can to support the club, the Mayor has said so as well.
PO: We want to do everything we can to support the club, the Mayor has said so as well.
Q&A:
If we are looking for new training facilities in Salford, how are we going to avoid turfing out any grassroots community clubs?
PK: There's discussions with the council to avoid that. We want to be a part of the community, we don't want to be tearing it apart.
If we are looking for new training facilities in Salford, how are we going to avoid turfing out any grassroots community clubs?
PK: There's discussions with the council to avoid that. We want to be a part of the community, we don't want to be tearing it apart.
The Fans Forum has now come to an end. The recording will be available on RDTV over the coming days. Paul King and Salford Red Devils would like to thank everyone who attended this evening and all of our fans for your continued support.
💪 #TogetherStronger
💪 #TogetherStronger
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