Salford turn to fan-ownership model to raise funds to avoid ‘running out of road’

Salford are looking to implement a new fan-ownership model to save the club’s future and with it become the first elite rugby league community owned club.

The community share offer launch, called Reds Rise Together, will enable fans to buy one share in the club’s holding company, which will entitle them to one vote at the Annual General Meeting and in elections for the board.

Since the departure of Marwan Koukash as owner, while Salford have battled with issues off the field, on it they have enjoyed a Super League Grand Final and Challenge Cup final, as well as a memorable run to the play-offs last year.

They are making this move to try and prevent the club having to sell its best players, and to ensure that they can continue to compete at the highest level. Uniting the local community and satisfying the new IMG criteria are also listed under reasons why the club is doing this.

Red Devils director, Paul King, wrote in The Tribune: “For those of us who have been lifelong supporters of the team, watching it getting trashed was heart-breaking—an experience shared by so many sports fans in recent decades. Since Koukash’s departure, the club has begun a journey towards a community-ownership model, establishing ourselves as a truly fan-owned club for the first time in our history—and the only fan-owned club operating at the top level of Rugby League.

“We’ve cleared almost all the debts left to us by Koukash with both suppliers and HMRC—and achieved success after success on the pitch despite having the lowest salary spend in the league.

“But despite all of these successes, the club has no money. In recent years, we have lurched from cash-flow crisis to cash-flow crisis, planning from one pay day to the next, even (at times) unsure of our continued tenure at our present home, the AJ Bell Stadium.

“My own house is sunk as security on a loan which is presently keeping the club afloat. The truth is, behind the scenes, a team of fans and staff alike have been holding the club together, keeping things above water at inordinate personal cost—and the truth is we’ve nearly run out of road.”

Salford fan ownership a forward-thinking approach for the community

Salford made a signal of intent in the off-season by signing star half-back Brodie Croft to a seven-year deal, to ward off suitors in both Super League and the NRL.

In previous years, they have had to wave goodbye to the likes of Jackson Hastings, as the club ran itself prudently as it dealt with the historical issues left by the previous ownership.

There has been some doubt too over their future at the AJ Bell Stadium, which now appears to be secured, with some discussions previously taking place about a possible ground swap with Salford City football club.

Although attendances remain towards the bottom end of Super League, there has been a clear uplift in 2023 which shows that there are signs of hope for Salford, especially if they can build upon a community model.

Under the new model, the club will be run day to day by its appointed directors and employees, with the directors set to resign by the end of June 2024 to enable a new board to be democratically elected.

They are offering four different packages to buy a share, ranging from the £100 owner package to a £10,000+ President’s Club option, all of which carry the same one vote.

The only other fan-owned club in professional rugby league is Hunslet, with a more relevant ownership model locally perhaps being that of FC United, who play in the seventh tier of the English football pyramid.

The Red Devils’ Managing Director added: “This year we’re celebrating 150 years of a club at the heart of its community. Now we’re growing that community, as well as placing it at the heart of the club.

“The game has changed. IMG are in the business and with that comes a forward-thinking approach to how we move forward.

“For years, whenever we’ve been close to something, we have had to sell our best players. This year we opted to change that. Now by doing this, it allows to maintain a competitive playing squad and gives us a real chance to win the biggest prizes in the game.

“We have a fundamental belief that sport belongs to the people – not a sole person; and by doing this we’re creating the opportunity for such likeminded individuals to join us and do something really special.”

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