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Rugby league fans are reeling with the sense of déja vu after the news that Salford is the latest club suffering from severe financial difficulties.
The Reds’ transition to a new stadium in Barton proved to be more difficult than was first imagined meaning the club, with a winding-up petition looming, could soon cease to exist.
READ MORE ON THIS STORY....
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Rugby league fans are reeling with the sense of déja vu after the news that Salford is the latest club suffering from severe financial difficulties.
The Reds’ transition to a new stadium in Barton proved to be more difficult than was first imagined meaning the club, with a winding-up petition looming, could soon cease to exist.
READ MORE ON THIS STORY....
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| Lets see if the rfl are as generous as they were with Bradford.
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| instead of following this link
go to several threads on the Salford site
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| IS this not very old news its been on these boards for ages
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| Quote ="JB Down Under"Lets see if the rfl are as generous as they were with Bradford.'"
the RFL can't afford to bail out salford...
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| The latest 'news' from the ever dependable Manchester Evening Speculator is that Salford will be announcing new owners on Monday night.
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| Quote ="Red John"The latest 'news' from the ever dependable Manchester Evening Speculator is that Salford will be announcing new owners on Monday night.'"
Let's hope your right, "The Greatest Game" certainly isn't in great shape at the moment
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| Once again the MEN are further from the truth then they could possibly be.
Due to.work commitments I couldn't go, but I believe the club need £600,000 before the start of the season or they go under.
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| The rugby league family and the RFL cannot keep being asked to bail out professional sporting clubs for the incompetence of their directors.
Salford have admitted to spending £450k more on player wages in 2011 than they did in 2010. Where did they think the money was going to come from to cover this increased wage bill?
If it takes one club going under to ensure that the rest learn to live within their means, then so be it.
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| Quote ="Andy Gilder":28su6r6tThe rugby league family
Depends if you're a golden boy like Bradford or a black sheep like Salford now or Wakefield before - bit of a double standard don't you think.
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| The rfl should help Salford (or any club that finds themselves in trouble) to the same level they helped with Bradford eg if it helps giving them sky money early. You cannot have a governing body favouring one team over another.
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| Quote ="MOT"The rfl should help Salford (or any club that finds themselves in trouble) to the same level they helped with Bradford eg if it helps giving them sky money early. You cannot have a governing body favouring one team over another.'"
You are right that they should help all clubs equally. However, this is not how our sport is run
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| Quote ="wrencat1873"You are right that they should help all clubs equally. However, this is not how our sport is run
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I agree it isn't the right way to do it but they have set a precedent now rightly or wrongly so have to deal with it
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| Quote ="MOT"I agree it isn't the right way to do it but they have set a precedent now rightly or wrongly so have to deal with it'"
dont hold your breath
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| Quote ="MOT"I agree it isn't the right way to do it but they have set a precedent now rightly or wrongly so have to deal with it'"
The only precedent the RFL have set out is, certain clubs will be given assistance, and others will be left to wither on the vine.
Bradford had a tangible asset with their lease on Odsal in order to receive financial assistance, as soon as it was obvious they couldn’t make any repayments the RFL gave them some more cash, in exchange for the said lease.
Salford, on the other hand, have no such asset, therefore the RFL would have no collateral against any monies borrowed, now the buffoons at Red Hall have made some blunders over the years, but to throw money at a company that could be heading towards administration, would reach a new pinnacle.
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| Whilst it'll be a sad day to see a nice modern stadium lost to the sport of Rugby League, we can take comfort in the fact that we'll still have the pleasure of standing on the terraces of the 'iconic' Odsal that the RFL so kindly saved on behalf of us all. Dog track and all.
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| Quote ="The Devil's Advocate"The only precedent the RFL have set out is, certain clubs will be given assistance, and others will be left to wither on the vine.'"
The only other variable is where you are in the season.
All other concerns aside, it could be argued that Bradford were assisted to ensure that
1) players were paid to the end of the season
2) the integrity of the competition wasn't distorted
But...there was an asset (called flogging the last bit of family silver)
The other precedents were Crusaders & Wakefield who got beggar-all help from the RFL. Although Crusaders players got quota exemptions - so that fits with the looking after the players POV.
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| It could provide the perfect opportunity for that fantastic RL stadium in Leigh to get to see SL every other week - every cloud eh.....
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| There are some differences between Salford and Bradford.
Bradford were given advances to get them to the end of the season. Imagine what it would have looked like had the team gone bust mid-season; secondly, imagine what that would have done to the league.
In terms of Salford, they're difficulties are in the off-season. An advance of payment in terms of Sky money might have an adverse effect - although I am not stating this with any certainty - down the line. They also have until January to find some investment (which I believe is when they're winding up petition is heard).
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| Quote ="Andy Gilder"If it takes one club going under to ensure that the rest learn to live within their means, then so be it.'"
Thanks. When we go t*ts up I'll just think about how it's good for rugby league and all will be well again.
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| I don't claim to know what the right balance is, but one thing I do know is the attitude of " it would be OK if clubs spent less " is a naive one. Just like the current 'austerity' debate, there's an argument to be had about the best way to reduce the 'deficit' whether that be at a specifc club or the sport as a whole. You can spend less or earn more, both solve the problem. Clubs often gamble on wages hoping (often wrongly) that it'll put bums on seats and earn more money. In other words, they hope its an investment, not a cost. Likewise, star players attract TV viewers to the game as a whole.
If you think the only way forward is 'spend less' you need also to seriously ask where the growth is ever going to come from. Or maybe you don't care and prefer a managed transition to an amateur or semi-pro game. If so, you're entitled to that view, but please don't think that the magic solution to create a growing professional sport is just cost-cutting.
I've seen calls to lower the cap for instance, but IMO we then just lose more talent ( and don't forget its not all about superstars going to the NRL or Union, but the hidden loss of those younger players who are never tempted by the sport in the first place), and with that we lose more profile ( if that is even possible!) and lose more sponsor interest, meaning a smaller pot of money to work with....so what then....yep, lower the cap again....death spiral.
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| It really is wonderful to see that scrapping automatic promotion and relegation helped clubs secure their financial stability as the RFL said it would.
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| P&R, salary cap, both good lessons in the law of unintended consequences and food for thought for those who think central control of clubs' behaviour is the way forward. As with all dictatorships (self-imposed ones included)...you'd better make sure the one in charge knows what they're doing...
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| Quote ="LeighGionaire"It really is wonderful to see that scrapping automatic promotion and relegation helped clubs secure their financial stability as the RFL said it would.
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Is it possible that Salford, in gambling on a better SL position and in expecting more bums on seats, have broken the cap ??
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| Quote ="LeighGionaire"It really is wonderful to see that scrapping automatic promotion and relegation helped clubs secure their financial stability as the RFL said it would.
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Yeah Salford, Bradford and Wakefield's finances were fantastic up to 2009. The RFL create the conditions where a club can be run without certain financial pressures like avoiding relegation or high player wages. If a club still can't pull it's finger and run itself professionally then maybe taking a look at the clubs' management rather than the RFL might be the way to go.
Wakefield being a great example in highlighting the difference between being run pretty well and pretty badly under 2 different managements.
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