Huge Salford Red Devils financial decision made by RFL as distribution request answered
Salford Red Devils have been granted an advance on their 2025 central distribution.
The Red Devils lodged a request last week to gain access to their distribution for 2025 earlier than expected due to an unexpected financial problem.
The 12 Super League clubs were due to meet on Monday afternoon at 3pm to make a decision on whether or not the Red Devils would be granted a six-figure advance on their distribution.
However, at around lunchtime on Monday, the clubs collectively decided they should not have the power to make the final decision – instead leaving it to the game’s governing body and RL Commercial to make what they felt was the best decision for the future of the Red Devils.
And a statement from the RFL and RL Commercial confirmed: “Further to the formal request received from Salford Red Devils for an advance against their distribution entitlement, the Rugby League Commercial Board have advised the club of their support of the request.
“This has been granted on the condition of central involvement in and scrutiny of a more sustainable long-term trading position for Salford Red Devils.
“It is the responsibility of Rugby League Commercial, and not the Super League clubs, to determine the basis of distribution entitlements.”
It means that Salford will be able to navigate through the rest of this year without any trouble – though they will now be subject to more scrutiny from the game’s administrators about their financial outlook.
Salford CEO Paul King said: “Thanks to RL Commercial for working with us on this matter. This affords time for the club to consider all investment options and to continue to collaborate with the council and our friends at Sale Sharks to support the purchase of the stadium.
“We are hopeful that is imminent, at which point we look forward to progressing the build of our Advertising Screen, to provide the club with an additional revenue source.”
The Red Devils are adamant their cashflow situation is short-term and temporary. They were due to receive income that has failed to materialise at the last minute which the club had budgeted for, which has left them short for the end of this calendar year.
They are confident their income streams will significantly increase as and when a deal to purchase the Salford Community Stadium by the local council is complete, which would enable them to make more money from hosting fixtures. They are also confident of increased sponsorship deals with more safety and security over their position at the venue.
The club are also hoping to erect a ‘jumbotron’ over the M60 which they believe will create further revenue and investment opportunities, and insist they will not need to come back to the table and ask for more advances on distribution.
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