BY JOHN DAVIDSON
Salford Red Devils managing director Paul King has defended the club’s crowdfunding and community share initiatives.
In April the Super League side launched an offering allowing supporters to purchase shares in its holding company, entitling them to a vote and eligibility to stand for election to its board.
The plan has faced criticism, including one component involving a direct debit scheme set in partnership with not-for-profit Salford Credit Union.
King says the direct debit part was created in response to fans asking specifically for it, and insists no supporters are being forced to be involved in it.
“It was just a genuine response to people who want to do a direct debit,” he told rugbyleaguehub.com Long Reads.
“Again, with the credit union if the three people who’ve done it want their money back we’ll be happy to do it.
“It might have been a bit naïve on our part, but it was a genuine response to a request. You can’t do crowd funder on direct debit. I’m not blackmailing the fans, I’m just being honest.
“No one is forcing fans to do it. No one has to do it. But when we have to sell players don’t criticise us, it’s just the way it is. When you play in front of 3,500 people it’s very difficult to fund a £2 million wage bill.”
King says he has never tried to sugarcoat Salford’s difficult financial position since Marwan Koukash departed as owner in 2019, leaving the club with several unpaid debts.
“Are we financially secure? Have we made that point that we are at any point in the last four years?
“You can look at Stef Ratchford, Richie Myler, Gareth O’Brien, Rob Lui, Jackson Hastings – as a club we have sold to survive for 40 years so there is a reason… we want to try and break that.
“If we don’t increase our income whether that is more people through the turnstiles, or through commercial returns, then we’ll have to sell players.
“And if I don’t say that, I’m being deceitful. And if I do say that I’m robbing the fans. I can’t win. I’m trying to be honest.
“I’m working in a sport that doesn’t even know what the TV money’s going to look like next year. So everybody, literally 12 clubs, are signing players for 2024 and they don’t know what their budget is, which is particularly difficult when you have no benefactor.
“There is a reason we play in front of 3500 to 4500… because we keep having to sell to survive. We’re just trying to break that chain and if we can’t, we can revert back to type. It’s not intended as a threat in any way, it’s just maths.”
It is understood Salford have knocked back bids from rival Super League clubs for five of its star players in just the past six months.
So far the Red Devils have raised over £150,000 through its ‘Reds Rise Together’ campaign, with 650 pledges of support. The initial target is £250,000.
King says the whole point of the fundraising idea is to invest in the club’s commercial and marketing department.
“We need to address it because IMG is in the business now and that just won’t cut it [our current set-up],” he said.
“The idea is to invest in the marketing and commercial side, to grow the attendance from 4000 to 6000, to pitch to new commercial partners.”
In March it was reported that the club would receive a £175,000 loan from Salford Council.
Salford have the second-lowest average attendance in Super League in 2023 with 4,705, ahead of Wakefield with 4,324. The club’s crowds have increased this year compared with 2022 when they averaged 4,529 fans.
The Red Devils are holding an event on May 23 at the AJ Bell Stadium where King, the Mayor of Greater Manchester Andy Burnham, City Mayor of Salford Paul Dennett and other guests will be in attendance to discuss the community share offer.
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