Super League club Salford Red Devils have been issued with a reduced sustainability cap and ordered to sell players by the Rugby Football League.
Uncertainty about the Red Devils’ future at Salford Community Stadium has led to doubts over gathering commercial revenue and left gaps in their finances.
Salford said they have maintained a level of silence in recent months “due to the sensitive nature of ongoing discussions with potential investors”.
“Our discretion has been to maintain and ensure the integrity of those discussions, bound by non-disclosure agreements, and to protect our club, players and staff,” Salford said.
“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 expedite – 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 £1.2m, and until we reach that, we are now prohibited from registering players for the upcoming season.”
The regular sustainability cap for Super League clubs is £2.1m.
Salford were thrown a financial lifeline in November when fellow Super League clubs agreed to give them an advance payment of their 2025 distribution money.
“The terms of receiving the advancement were that the club be placed under ‘special measures’ requiring a reduction in overheads of £800,000,” Salford added.
“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.
“It is important to add that the advancement monies were held by RL Commercial and payments administered directly from them – the club have never been given the funds to manage directly.”
Salford City Council approved a deal to purchase the stadium the Red Devils share with rugby union club Sale Sharks in September.
The Red Devils said they were unable to contact the council during the “festive period” to secure a meeting and “ascertain next steps in order to maximise club revenue opportunities”.
“Prior to acquisition, one investor negotiation collapsed due to the investment risk of not having any confirmed position from the Council on when the stadium acquisition would be finalised; an example of the delicate negotiating position we find ourselves in,” Salford said.
The Super League club, who reached the Grand Final in 2019, also said Salford City Council failed to deliver on a subsidy control grant which had initially been suggested in March 2024.
“The club were notified in July 2024 of a delay and again in September 2024 with a further delay until November 2024, again impacting financial forecasting,” Salford said.
“In November 2024, 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.”
The Red Devils are due to begin their 2025 Super League campaign at St Helens on 15 February.