Salford City Council is poised to approve a £630,000 loan to the home stadium of its main rugby league and union clubs.
The loan to the City of Salford Community Stadium (COSCOS), where Salford Red Devils and Sale Sharks Play, will be matched by Peel Holdings, which built the venue under a joint venture partnership arrangement with the council.
A report to a council meeting today said ongoing financial support was ‘necessary to enable the stadium company to fully discharge its liabilities during the current financial year’.
The report read: ‘Without this additional support from both shareholders the stadium company would default on the existing council loan with serious implications for the city council’s investment and accounts.
‘It is also currently anticipated that over at least the next three years further loan finance will be required from the two COSCOS shareholders to support the company.’
The council believes the existence of a community stadium ‘provides a wide range of benefits for many residents, businesses and visitors’.
COSCOS is also used as an event and conference space, with around 35,000 delegates attending in the last year.
Its ability to repay loans in the long-term is conditional upon land sales, which are estimated to raise up to £16.7m.
