The Rugby Football League reimposed the Salford Red Devils' pay cap limit, summoning new owners to Wednesday's meeting, explaining why February's wages have yet to be paid amid the new crisis surrounding Super League clubs.
Salford faced serious financial difficulties over the winter, and the club secured a £500,000 advance with the core funds to survive the offseason. That light-form seemed to be alleviated when the club was taken over by a group led by Swiss investment banker Dario Berta.
At that stage, Salford was said to have only been able to acquire talent worth around £1.2 million until the action that occurred two weeks before the RFL ratified the acquisition and satisfied the funds needed to stabilize the club was lifted.
However, Salford players and staff are due to be paid last Friday, and those salaries have not been received. Their playgroup effectively halted training in the preliminary stages of the match against Castleford this weekend. The issue has not been resolved by Tuesday.
Salford argues that the delay in funding is due to a seven-figure total from overseas. However, the RFL decided to take action immediately, redesigning the club's cap limit for a trip to Castleford. That means their head coach, Paul Lowry, can choose only a handful of talent, and Salford once again will be £1.2 million for a £2 million team.
Additionally, new Salford administrators were ordered to attend a crisis meeting Wednesday morning, explaining plans to resolve the issue. Due to fixtures this weekend, there are unlikely restrictions. Salford won't win from the opening of the three league games.
The agency said: “The RFL Task Force Committee has decided early today to immediately reequip the £1.2 million sustainability cap levied on the club in February, which was lifted before the Betfred Super League Round 2 fixture.
“In addition, the Salford Red Devils have been asked to update and explain the RFL task force committee and representatives of the rugby league commercial at their meeting on Wednesday morning, and a wider update on the current position on staff non-payment and how this will be revised, as well as the club's financial sustainability.”
After the newsletter promotion
In a statement posted to X, Salford Red Devils said: To our fans, we sincerely apologise, we know this is not an easy time to become a Salford Reds fan. We apologise to you on behalf of the new ownership that ensured the club that the consortium is working to correct the financial situation and there is no further problem. ”
