The council has been underwriting their rent since they moved in to the AJ Bell, they defaulted on a CVA and got deducted points for it from memory, looks like things haven't improved, they haven't learned from it and the council have decided enough is enough.
The community funded club thing was just a rouse to get through the season that actually fell short, hence the reason they sold on a couple of long term contracted players, how has the RFL allowed the recent transfers/player to move in to Salford with all this going on, how have they managed to get the IMG rating they have based on all this. then to add to that now they are asking for further dispensation from their council.

Its a non financed debt so definitely affect IMG scoring

That sounds logical, but will it ?

Doesn't seem that it has.

1 only if the landlord carries the debt on. If they just wipe it each year it just appears as a 0 expense.

And from IMG point of view, they are looking at last year not this year.
It'll affect them on the next audit, which is more important to them.

The debt hasn't been written off its still standing but underwritten by the council, so is owed to the council not the landlord (for the moment) the debt has accumulated since they defaulted on the CVA (which I think was back in 2017) so for the last 3 years that IMG were looking at, it has existed and increased each year
The question is, did they reveal this debt in their IMG submission or did IMG choose to ignore it?

Unless they receive financial penalties which cost them 0.25 points
or an 'insolvency event' - which would downgrade them a level. So if they are a B they become a C

I'm going from personal recollections, so I might be wrong, but this is how I see it.

They were persuaded to leave Salford to play in Eccles as a new stadium would be built and Salford Council wanted to ensure the survival of rugby league in the Salford area. As the stadium was being finished, blue seats started to appear, and it became apparent that Sale Sharks would also be playing there. In reality, therefore, Salford were not even co-tenants, but just lodgers, as someone else played there and someone else was paying the rent.

I get the increased impression that what is wanted at the stadium is a nice shiny home for the only high-level rugger club in the rugby league heartlands, and Salford RLFC is just there to add increased revenue.

I feel for them, because the fans went along with a very inconvenient move because of the promises made, and for the club because they were sold the same but it hasn't been delivered.

It is being reported nationally that councils are falling short of their budgets. I suspect the council now regard the club as a burden they wish they hadn't taken on (and to be fair, as might many local council tax payers).

They should get in touch with Gary Neville and come to a shared agreement with the Salford FC ground. Have a real Salford identity in a ground that will be filled when there is a league game on.

As for us, it shows how we are in a much better position. We own the ground. We get the finance streams. Rather in our position than theirs. We have the foundations. All they have is the roof.

From the Red Devils Forum:
"FWIW, just been sent a what's app message involving a current Councillor stating the council are absolutely 100% committed to the club and are currently buying out Peel's half of the stadium."

The use of the word "committed" is always troubling from a politician. It usually means, "we'd really like to, in an ideal world, but sorry guys"

They had to sell off The Willows to pay off debts. They were fortunate enough to have a new ground offered.

Like an ex-parrot then.

PS - Feel for the fans, who as usual are left in the lurch.

yes he really cleared the decks and left our saviour with over 5 million of debt, absolutely splendid.