FORUMS > The Virtual Terrace > Salford about to Enter Administration if NO buyer is Found |
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| Quote: SIMMSFAXTEDDY "All is well in SL, and this franchising system has saved our game!
Now onto Blackpool.'"
Yeah i have to agree
Wood we have you still believe our game is thriving.
I remember during the world cup and i sent a few emails to the RFL saying what i cr@p job they were doing leading up to the event. I got an email saying before the event even started they were guaranteed so many millions profit because of how well they had organised it...........we all know how that ended!
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| Quote: mikej "In isolation they mean nothing as stats and headline figures can be interpreted in a number of ways. What I would say, if your figures have been correctly extracted (and again this is the danger of reading things in isolation) is that if Salford have a "negative" net worth, then surely they are insolvent.'"
Having a negative net worth doesnt make a company insolvent.They become insolvent if they are unable to pay their debts as and when due.
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| Goes back to what I was saying about living within our means, but some people are happy to continue sticking their fingers in their ears and shouting "sugar daddy sugar daddy" over any such discussion.
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| Someone has copied the OP's post onto Salford's Facebook page and they've replied with the following. Apparently the OP is claiming to have family on the board.
Quote: Salford City Reds Rugby League Club "We don't comment on rumour and speculation. There is no 'family on the board' connection to that though, that is for certain - anyone truly 'in the know' would not be writing such wild, inaccurate and damaging nonsense.
As for Chris Bird, he's a lovely chap - and very good at what he does. Personally I would love him to be involved with us, sadly what he does has nothing to do with Salford and had nothing to do with the Leeds Rhinos promotion - that was run by the club and the RFL. Matched funding. They've done it once per club this year - was actually at a meeting about it this morning in St Helens... His PR agency is employed by the stadium. But hey, don't let the truth (or anything like it) get in the way of a good internet rant!
As for the Junior Devils, it is coming - we apologise for the delay, but the club has gone/is undergoing a period of intense internal reflection and change, and the operational figurehead of 30 years is no more. Marketing have been working on a new over-arching five year plan, and this is in the discussion and amendment stage before it is ratified by the board and enacted by the staff (who apparently are in the great position of being paid by a club with no money for doing nothing while someone else does their job for free? And you can't see the non-sense in that???)
Junior Devils is very much a part of it though, as are other exciting junior based initiatives.
No idea who is spreading this stuff around, but there is one thing that is patently obvious - they are not a Salford fan and they do not want the best for the club... Sad really - especially when they do it hiding behind anonymity... Onward. /Steve'"
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| Quote: CavendishStreet ".."Wild, innacurate and damaging nonsense".'"
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| Quote: CavendishStreet "
Net Worth
As has already been pointed out, these figures mean nothing without deeper analysis. If the current liabilities are mainly additional funds injected by the directors/shareholders then they could be seen as quasi equity which would improve the negative net worth. Also, in such a case the directors/shareholders would want to do everything possible to keep the company afloat to give thm the best chance of getting their money back.
On the other hand, if the liabilities are just a mix of bank debt, trade creditors & HMRC then the clouds on the dark side of the hill will be looking very black indeed!
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| Quote: Mr Carl "Are there even enough Salford fans to justify the effort involved in trying to save the club? I'm not being inflammatory, I'm just asking if enough people care about Salford RLFC to continue generating revenue if and when this current crisis is averted.'"
They need to rebrand as a Manchester team , i.e Manchester Reds and try and appeal to a wider audience.
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| Lowry Lynx
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| Quote: No1 Saint "They need to rebrand as a Manchester team , i.e Manchester Reds and try and appeal to a wider audience.'"
They could re locate to old trafford as a name change is certain to pull in Mancunians in their droves
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| Quote: No1 Saint "They need to rebrand as a Manchester team , i.e Manchester Reds and try and appeal to a wider audience.'"
Just imagine how much exposure St Helens RFC would get if they would rebrand themselves to Liverpool Saints, eh?
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| Quote: east stander "City Reds
Changing name ensures more crowds, just look at the successes in London'"
funny...I don't remember hacking your account and posting that.
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| Quote: Saddened! "Hopefully this period will whittle out some of the weaker clubs and those that remain can realise what is happening and reduce the cap.
We're already dwarfed by Union and will soon be by the NRL. So why not just reduce the cap? Sure we'll lose players to those rival competitions but does it matter in the long run?'"
Economic nonsense. If a club can afford to keep players in OUR sport then we should be encouraging them to do so. Dragging everybody down to the level of the clubs that can't get themselves any fans just rewards failure and leads to ever further decline. We can't get sponsors as it stands, how is losing the best players going to help? Far from the cap being too high, its the cap being too low ( for clubs with money ) that's caused the problem. Its blocked money out of the game.
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| Quote: TURFEDOUT "Having a negative net worth doesnt make a company insolvent.They become insolvent if they are unable to pay their debts as and when due.'" Indeed - given nine of the 13 British SL clubs have negative net worths that would indeed be a problem; the average net worth is minus £94k. Exclude Warrington and Leeds and it is minus £2.4m. 12 of the 13 have net current liabilities, an average of £1.4m.
Every club other than Leeds is reliant on their owner for support; but this is a fact of life in almost every sport, certainly in the UK, and does not reflect positively or negatively on Rugby League in any particular way. In fact it is quite remarkable that such a small sport has so many very rich people willing to put so much money in - the most extreme examples being Ken Davy, the guys at St Helens and David Hughes. Quite how much John Wilkinson can be compared to those backers of rival clubs I'm not sure - and, like at Bradford, that might be Salford's big problem.
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| And yet Cas, Who own their own ground, And can maintain a suitable standard SL team, Losing less than most, Are been forced into busting a gut to get a new stadium, When the one they have is suitable for their needs. (Same goes for Wakefield)
The RFL are killing the game.
Salford aren't the only ones, Hull KR aren't far behind them, And the bottomless pit in London can't last forever.
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| Quote: MjM "Indeed - given nine of the 13 British SL clubs have negative net worths that would indeed be a problem; the average net worth is minus £94k. Exclude Warrington and Leeds and it is minus £2.4m. 12 of the 13 have net current liabilities, an average of £1.4m.
Every club other than Leeds is reliant on their owner for support; but this is a fact of life in almost every sport, certainly in the UK, and does not reflect positively or negatively on Rugby League in any particular way. In fact it is quite remarkable that such a small sport has so many very rich people willing to put so much money in - the most extreme examples being Ken Davy, the guys at St Helens and David Hughes. Quite how much John Wilkinson can be compared to those backers of rival clubs I'm not sure - and, like at Bradford, that might be Salford's big problem.'"
Correct. I don't know if these fans of even lower salary caps genuinely don't mind league becoming a very very minor sport indeed or if they live in a fantasy world where we, uniquely, can be a top 4 or 5 sport in the UK without wealthy benefactors in the game. It ain't going to happen. If someone has the money to spend on things to boost the game...let them. And frankly, although people tend to always see high player expenses as a bad thing, you can make a strong case that buying say, Dan Carter, (heck, even Gavin Henson!) would generate more column inches, and therefore more sponsor interest, etc. for it to be a perfectly sound piece of business for the game as a whole. Our game has decided its too small fry for that to *ever* be something we'd do, and it pees me off that we're doomed to media mediocrity. At our media 'peak', Hanley, Offiah, etc. we were just starting to get somewhere against the bias, but now we're back (in fact behind) square one.
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