The Rugby Football League has reimposed salary cap restrictions on Salford Red Devils and summoned their new owners to a meeting on Wednesday to explain why players and staff still have not been paid February wages.
Salford faced significant financial difficulty over the winter that led to the club securing a £500,000 advance on their central funding to survive the off-season. That plight had looked as though it would be alleviated when the club was taken over by a group led by the Swiss investment banker Dario Berta.
At that stage Salford had been told they could field only about £1.2m worth of talent until measures were lifted, which occurred a fortnight ago when the RFL ratified the takeover and was seemingly satisfied the required funding to stabilise the club was forthcoming.
However, Salford’s players and staff were due to be paid last Friday and those salaries have not been received. Their playing group has now effectively stopped training in the run-up to the game against Castleford on Friday.
Salford insist the delay in funding is due to a seven-figure sum coming from overseas. But the RFL has decided to take immediate action, reimposing the cap restrictions on the club. It means their head coach, Paul Rowley, will be limited once again to players worth a total of £1.2m of their £2m squad.
Salford’s new administrators have been ordered to attend a meeting on Wednesday morning to explain how they plan to resolve the matter. It appears unlikely restrictions will be removed in time for the game on Friday and Salford are winless from their opening three league games.
The governing body said: “The RFL special measures committee have determined at their meeting earlier today that the sustainability cap of £1.2m that was imposed on the club in February, and lifted ahead of their Betfred Super League round two fixture, will be reimposed immediately.
“In addition, Salford Red Devils have been asked to update and explain to the RFL’s special measures committee and representatives from Rugby League Commercial at a meeting on Wednesday morning the current position regarding non-payment of staff, and how this will be rectified as well as a wider update on the club’s financial sustainability.”
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On social media, Salford Red Devils said: “CEO Chris Irwin and the new ownership will meet with the special measures committee and RL Commercial tomorrow morning. To our fans, we sincerely apologise, we know this is not an easy time to be a Salford Reds fan. We apologise to you on behalf of our new ownership who have assured the club that the consortium is working to rectify the financial situation and there will be no further issues.”
