Salford Red Devils say they are ‘deeply disappointed’ with the council’s decision to end talks with a firm linked to a takeover of the club and purchase of Salford Community Stadium.
The council and Jacobson Management had been in negotiations regarding the future of the stadium, which the council bought outright last year for £7.7m and is home to Salford Red Devils and Sale Sharks.
But today Salford city mayor Paul Dennett and deputy mayor Jack Youd released a statement announcing that talks had formally ended.
They said: “It has not been possible for the council to progress negotiations and carry out a detailed due diligence exercise as required in a timely manner.
“We understand how difficult and uncertain this situation has been for supporters, staff, players and everyone connected to Salford Red Devils.
“We share your frustration and concern. Like you, we care deeply about the future of the club and the role rugby league plays in Salford’s sporting identity and community life.”
But the rugby league club said the council’s decision will “impact negatively” on the team, stadium, local community, and fans.
They said in a statement: “To the Salford Red Devils family, we are deeply disappointed by Salford City Council’s decision to end negotiations regarding our purchase of the Salford Community Stadium.
“This unilateral decision will only impact negatively on the team, the stadium, the local community, and our fans, who are the lifeblood of this great club.
“In light of today’s decision, we will be reviewing all available options and sharing more information in due course.
“We want to reassure you all, after discussions with the RFL and leading members of the Super League who have given sound advice, our goal is and always will be, to stabilise the club for the Salford Community.”
Salford council’s decision to buy the community stadium was aimed at securing the future of Salford Red Devils, after the club found itself in a period of financial turmoil.
The stadium was part-owned by Peel but Salford council completed a buyout deal in December.
However, the move was heavily criticised by the council’s Conservative opposition, who said it could end up costing taxpayers millions of pounds.
Plans were made to sell off land around the ground for development as a way of financing the purchase and boosting the local economy.
This is already moving forward, with a recent application on a site to the south of the ground, spanning 5.4 acres, for new ‘high end industrial units’ that will help transform the area into a new business hub.
After the council completed the stadium purchase in December, Mr Dennett said it would “help protect the Super League status of Salford Red Devils RLFC and ensure both the Red Devils and Sale Sharks will retain their position playing in Salford.”
He added: “Work will now kick off with exciting plans to engage fans, community groups and grass-roots rugby clubs, schools, education providers and residents with the city’s Community Stadium and the sport of rugby.
“The stadium will be at the heart of the city’s Rugby Strategy, with huge potential to increase participation rates in sport and contribute to improving the health and wellbeing of local people of all ages through all forms of the game and the wider activities.”
