Salford council is owed nearly £2m after dishing out financial support to the city’s rugby clubs, a freedom of information (FOI) request has revealed.
Loan and grant payments have been made to Salford Red Devils and Swinton Lions to support the clubs in recent years, with a total of £1.8m still due to be repaid.
Swinton Lions received £100,000 loans in March and August this year, both of which have not yet been returned to the council. Salford Reds meanwhile have received three different payments in the past two years – a loan worth £40,440 in December 2022, a £175,000 loan in February 2023, and a £315,000 grant in March 2024.
The rugby league club also has a historical debt of £1.5m which was transferred in 2013 from Salford Football Club (1914) Ltd.
Salford Reds are currently going through a major restructuring, with head coach Paul Rowley set to become the new director of rugby from November 2025, and current managing director Paul King becoming the new chief executive officer with immediate effect.
Salford council recently finalised a deal to buy Salford Community Stadium from Peel, in a purchase said by Mayor Paul Dennett to cost around £2m.
The stadium is home to Salford Reds as well as Sale Sharks rugby clubs, and is expected to see major regeneration now that it is under council control, with work around the ground set to create new jobs and deliver huge social value for the city.
Buying the stadium is also expected to provide a boost to Salford Reds, as the club looks for an improved tenancy at the stadium and to keep more of the revenue from match days.
But the Labour controlled town hall has faced criticism from the Conservative opposition who say the purchase will cost the city “millions of pounds” in future losses.
‘Taxpayers need to know how much this is costing us’
Coun Robin Garrido, leader of Salford Conservatives, claimed these losses have not been made public and are kept in a confidential report on the stadium purchase.
The Local Democracy Reporting Service (LDRS) asked Salford council to confirm if any losses would be made after the stadium deal.
Mr Garrido said: “The thing that really annoys me is that there are so many other things that should be a priority in the city.
“We had one this week and that’s Salford Lads club. They need £250,000 or they will close, that is more important for me, it’s in one of the difficult areas of Salford they need the support, that’s where we should be spending the money, not on the rugby stadium.
“It will cost this city millions of pounds in the next few years, the figures are substantial.”
Mr Garrido warned that after the council provided funds to Salford Reds and Swinton Lions, other sports clubs could also come to the council asking for money.
“I think the issue is, it has set a precedent. It would not surprise me if other clubs come,” he said.
“How do we say to any club ‘no sorry we can’t?’ The whole thing does not make sense. We’ve put ourselves in an extremely difficult position.
“I really think the city mayor should have thought this out a bit more. Council taxpayers need to know each year how much this is costing us.”
Protecting Salford’s rugby heritage
Salford Mayor Paul Dennett defended decisions to support the clubs and purchase the rugby stadium.
He pointed to his re-election at this year’s local elections, which included a manifesto pledge to create a rugby strategy for Salford, anchored by a wholly publicly owned community stadium.
Mr Dennett told the LDRS that buying the community stadium has “rugby and sports at its heart,” and allows the council to further support clubs, from Salford Red Devils and Swinton Lions, down to grassroots clubs which will have access to community facilities at the stadium.
He added: “Taking ownership also means local, democratic control over the development of the surrounding land, ensuring the regeneration of a strategic site of our city maximises social value, and good jobs and opportunities that ultimately benefit the local community.
“Swinton Lions and Salford Red Devils are both sporting institutions, with 150 year histories in Salford. By providing temporary financial support to them, Salford Labour are securing the future of rugby league in our city, whilst ensuring the sporting, economic, social and health benefits of our democratically supported rugby strategy are fully realised in future years and decades.
“It is disappointing and rather hypocritical that the Conservatives are using the Reds and the Lions as a political football, in contrast to their acquiescence with previous decisions to provide significant financial support for other cultural institutions in Salford, such as the £18m given to the Lowry since 2022, the £19m invested into RHS Bridgwater and the £20m sponsorship deal with the BBC Philharmonic Orchestra.
“Despite 14 years of funding cuts from Councillor Garrido’s party, Salford Labour have consistently supported our cultural and leisure sectors, for the benefit of all our residents and communities.”
Steve Wild, CEO at Swinton Lions, said: “Swinton Lions Rugby League Club would like to express our sincere appreciation to Salford City Council for their continued support.
“Their partnership plays a crucial role in the club’s long-term sustainability and success.
“Together, we are committed to furthering the development of rugby league within the city, driving greater participation across our community, and providing educational, social, health and wellbeing opportunities through our Lions Foundation.
“Salford City Council is a valued partner, and their significant contribution ensures that we can continue to grow, both on and off the field, as we work towards creating lasting positive impacts throughout the region.”
A Salford Red Devils spokesperson said: “Over the last five years, the club have received financial support from Salford City Council in separate instances and continues to pay back all loans within the agreed time period.
“Amounts received by a previous regime are a council matter, the detail of which we are not privy to.
“Following yesterday’s positive announcements regarding our new leadership team, we now have the right team in place who are committed to driving the club forward on and off the pitch.”