Troubled Super League club Salford Red Devils have received another setback after local authorities ended talks with some of their owners over selling them their home stadium.
The club play at the council-owned Salford Community Stadium, which they have shared with Premiership Rugby club Sale Sharks for more than a decade.
But Salford City Mayor Paul Dennett announced today that he “has formally ended all negotiations” with part of the consortium that recently purchased the Red Devils.
Jacobsen Management Group’s Curtis Brown joined Dario Berta, Kurt Graver and Saia Kailahi as part of the group that took over the rugby league club in February.
The council has now severed its relationship with Jacobsen Management Group because “it has not been possible for the council to progress negotiations and carry out a detailed due diligence exercise as required in a timely manner”.
It comes after City AM revealed that Salford Red Devils’ operating company was hit with a winding-up petition by tax authorities this week. The club said they were aware of the reports.
Will Sale Sharks buy Salford Community Stadium?
A statement on behalf of Mayor Dennett continued: “Jacobsen Management were introduced to the stadium by representatives of Salford Red Devils RLFC – not by the council.
“We understand how difficult and uncertain this situation has been for supporters, staff, players and everyone connected to Salford Red Devils.
“We share your frustration and concern. Like you, we care deeply about the future of the club and the role rugby league plays in Salford’s sporting identity and community life.”
They added that the council stepped in “to acquire full ownership of the stadium” that Salford Red Devils share with Sale Sharks “to help secure [the] future”.
“We remain committed to working with all our stadium tenants and partners to ensure the stadium delivers for the whole of our city – and to ensuring Salford Red Devils have a stable and sustainable home.”
Co-tenants Sale Sharks, who are owned by billionaire businessman Simon Orange, have previously shown interest in buying the Salford Community Stadium, but City AM understands that they have no plans to revive a deal at present.
