The home stadium of Salford Red Devils and Sale Sharks rugby clubs is a step closer to being under the full ownership of the local city council. This follows a Salford city council cabinet meeting today which agreed on a ‘statement of strategic intent’ for buying 100 per cent of what would become the City of Salford Community Stadium (CoSCoS).
What is currently the AJ Bell Stadium is jointly owned by the authority and Peel but the land and property giant wants to sell its share. A report from city mayor Paul Dennett to the meeting says that outstanding debt on the stadium currently stands at £37m, but the council has been paid back £11m since it was built and that money is being held back as a 'contingency' in case further work is needed.
But Conservative opposition leader Robin Garrido has objected strongly to the plan and has claimed the city council’s bid for full ownership may be ‘illegal’. He does not sit on the cabinet but attended the meeting as a member of the public. Mr Dennett told the cabinet that the stadium was ‘part of what we are delivering in that part of the city [in Eccles]’.
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“We had huge land challenges when it was being built because it was a brownfield site. Peel have been keen to pursue a sale [of their 50pc share] of the stadium for some time to remove themselves as a joint venture partner.”
But he went on: “This isn’t a decision to purchase the stadium, it’s a decision around the direction of travel in terms of where Salford city council is moving and going. This is about delivering social value in accordance with our economic strategy.
"We do believe that local authorities should be owning assets, rather than what’s been going on over the 13 years where councils up and down the country have had to sell off assets to balance their budgets. Local authorities should be asset-owning entities.”
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He said that the intention to buy the stadium was about ‘the future development and regeneration in that area of the city'. “This is about securing a home for Salford Red Devils. It's fair to acknowledge the cultural contribution they make to the city as they prepare to celebrate 150 years as a club, supporting mental health and people with disabilities [in the community].”
However, speaking after the meeting, Coun Garrido told the Local Democracy Service he had ‘no doubt’ the stadium would end up in the full ownership of the city council but added: “We’ve got to make it as uncomfortable as possible. I’ve already received dozens of emails from people who are aghast that they are going to spend millions on the stadium.
“If this was a viable situation, why do Peel want to sell their share of the stadium? Why are they desperate to get rid of it? Because it’s a white elephant hanging around their neck.
“Peel don’t get rid of anything that makes money, and I understand that.”
Salford city xouncil spokesperson said: "[Mr Dennett's report] set out the intention to protect the long term interests of the council, secure ongoing community use, deliver Salford Reds Devils and Sale Sharks social value in the community outcomes through both clubs activities and provide the opportunity to secure a long term home for Salford Red Devils.
“Much work has still to be done, but the discussions between the council, the stadium company CosCos, Sale Sharks and Salford Red Devils are currently progressing well.
“The council will keep the public updated as and when there are any significant developments.”
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