Salford mayor Paul Dennett has defended a council loan of nearly half a million pounds for the city’s rugby stadium. An ‘urgent’ decision notice was signed by the Labour mayor on March 4 to pump £450,000 of public funds into the stadium company, which the council owns.
Salford council bought the stadium company in late 2024 in a £7.7m deal with former co-owners Peel, giving it full control of the ground and surrounding land.
The borough’s phoenix rugby league club plays at the ground as well as rugby union side Sale Sharks. Mr Dennett said the loan is a sign of ‘responsible stewardship’ to protect the future of the building.
An urgent decision notice published on Salford council’s website explained the payment was needed to ‘maintain core operations, meet existing financial commitments, and safeguard service levels.’
The loan was exempt from ‘call in’, meaning councillors were not able to force it back to face scrutiny.
Opposition councillors in the city have attacked Labour over the move.
Councillor Bob Clarke, leader of the Conservative opposition group at Salford council, said: “We are disappointed that the stadium has once again had to borrow money from Salford City Council.
“This reinforces our recent submission to the full council meeting that there should be a cut-off date for the stadium to become financially self-sufficient.
“This date should be around 2028. If by that time the stadium remains a loss-making enterprise it should be sold. There is still a possibility that the situation could be improved through any future land sales.”
Salford Tories said in February that ownership of the stadium is costing Salford taxpayers £1.6m a year.
Paul Dennett defended the council’s loan to the stadium company.
He said: “The decision to provide a £450,000 loan to the community stadium is a responsible intervention that protects one of Salford’s major civic assets.
“Since the council took full control of the stadium and surrounding land in late 2024, we have focused on stabilising operations, addressing inherited challenges, and laying the foundations for long term regeneration.
“This loan supports that essential work, and although most of the council’s building’s/physical assets are supported through the council’s revenue and capital budgets, because this is a company limited by guarantee, operating at arms-length, it requires cash-flow matters to be dealt with in this way (as loans).
“It is important to be clear about what we inherited: a cost base hit by a 42 per cent rise in national utilities, significant deferred maintenance, and legacy contracts that did not deliver value for money.
“Over the past year, we have delivered major safety improvements, upgraded IT systems, repaired building fabric, strengthened governance, and ensured the stadium could successfully host major events, including Women’s Rugby World Cup fixtures. This is the necessary work of responsible stewardship.
“The stadium is far more than a building. It is home to two historic rugby clubs, delivers community sport, creates local jobs, welcomes thousands of visitors, and underpins the city’s wider rugby and social value strategy.
“A short-term loan protects that foundation while we complete the evidence-based options appraisal needed to shape long term decisions about the stadium and 17-hectare site.”
