Salford Red Devils player sales to begin as HUGE salary cap reduction order revealed

Salford Red Devils have broken their silence on the financial situation engulfing the club: and have admitted player sales will now begin ‘without delay’ after being instructed to reduce their salary cap spend to £1.2million.

The Red Devils remain locked in talks with an Australian consortium in regards to investment that would lead to a takeover of the club. However, with the new Super League season now less than a month away, they have been instructed that player sales will begin – with the proverbial vultures circling to swoop for their best players.

Salford, who say they have deliberately remained silent in recent weeks due to Non-Disclosure Agreements with interested parties, but they have conceded that the Rugby Football League have issued them with a sustainability cap of £1.2million and until they reach that, they cannot register players for the 2025 season.

They insist investor negotiations remain ongoing and they are continuing to progress. But the RFL’s instructions mean that Salford have to cut an astonishing £800,000 from their salary cap, sources have indicated to Love Rugby League.

The club, in a statement titled ‘the truth behind the rumours’ and issued to Love Rugby League, wrote: “As the position stands, contrary to what has been reported, investor negotiations continued over the weekend as part of the lengthy, rigorous process to secure a takeover for the club.

“This is still live and we are working to expediate, details of which we can’t disclose given the Non-Disclosure Agreement in place. However, the club has been directed to sell players without delay; the position is the RFL have issued a sustainability cap of £1.2 million and until we reach that, we are now prohibited from registering players for the upcoming season.”

“Our focus remains in working to explore all avenues possible for the long-term stability and success of Salford Red Devils. Immediate next steps are to continue the potential takeover process to secure investment as soon as possible, whilst now simultaneously selling players to meet RL Commercial regulations.”

Salford have also explained the situation regarding their central distribution advancement of around £500,000, and why they have waited until today to begin to action player sales.

They said: “The terms of receiving the advancement were that the club be placed under ‘special measures’ requiring a reduction in overheads of £800,000.

“We were not given a clear timeline for compliance on required expenditure reductions, therefore the Club took the decision to hold our position for the short-term while investor negotiations are ongoing. During this time the club has received offers for a number of players, none of whom have been available for sale until today.”

Salford have also explained how a promised subsidy from Salford City Council which was initially suggested last March ultimately never materialised due to local funding shortfalls.

By the time the club were told in November the subsidy was no longer available, they had already committed funds to recruitment and the controversial pre-season training camp in Portugal: which Salford’s players, who are now up for sale, are still on.

They said: “In March 24 it was suggested by Salford City Council the club could receive a subsidy control grant to support rugby league and the rugby development pathway in the City of Salford and Greater Manchester. This is akin to other Salford community entities who have received similar funding i.e. The Lowry and RHS Bridgewater.

“The club were notified in July 24 of a delay and again in September 24 with a further delay until November 24, again
impacting financial forecasting.

“In November 24, Salford City Council advised that the subsidy control grant was not available due to funding shortfalls elsewhere, the impact of which was that the club had already committed funds to player and staff recruitment and paid for pre-season preparations including a warm weather camp in Portugal.

“Effectively, these projected funds had already been allocated.”

Salford also say that they will arrange a meeting with the local Council when they return from their festive break to discuss how to maximise revenue opportunities off the back of the new stadium deal, creating another urgently-needed cashflow avenue.

But for now, Salford’s squad is up for sale.

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