SEVERAL suitors are still eyeing taking on stricken Salford – but it may take them to go into administration and certain relegation to force a sale.
And failure to meet wages on time for a THIRD straight month on Thursday may see players resign.
PASalford stars could resign if owners again fail to make payments on time[/caption]
SunSport understands owners Sire Kailahi and Curtiz (CORR) Brown are scrambling once again to make payroll on the scheduled date, after being late in February and March.
Failing may be the final straw for several of Paul Rowley’s players, who are ready to submit letters to the Rugby Football League.
And the club is said to be on the brink, with entering administration possibly forcing many monitoring the situation to move, including at least one NRL club.
That, however, will mean they cannot be in Super League next year as under IMG’s grading, a ‘financial event’ drops them to Grade C, making them ineligible.
It is believed interest from the sport Down Under has been registered before but clearing much of the debt, currently standing at about £2.5million, will make them more attractive.
A proposed buy-in to the sport here may also make the Red Devils, who are in the mire, more alluring.
Kailahi and Brown, who own Salford, have secured investment from other parties, including Swiss-based Dario Berta and American Marlon Muller, who is acting on behalf of his clients.
That reputed £100m pot, though, is dependent on a stadium and land deal with the city’s council and time may run out on them, even though a Heads of Terms agreement may be sorted this week.
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The group has also placed the ‘Salford project’ low down on its priority list.
Kailahi is also involved in a court case in America relating to activities linked to Salford but which pre-date this buyout.
According to court papers from the San Francisco Division of the United States District Court’s Northern District of California, ticket firm Eventbrite is claiming £500,000 from Kailahi’s Stadium Salford company after entering a sales contract.
Their complaint, seen by SunSport, states: “Eventbrite further agreed to provide an advance payment of GBP 500,000.00 to Stadium Salford.
“On October 27, 2023, Eventbrite disbursed the advance of GBP 500,000.00, which Stadium Salford acknowledged.
“Despite Eventbrite’s performance of its obligations under the contract and the benefits conferred by the GBP 500,000.00 advance, Stadium Salford failed to commence ticket sales on the Eventbrite System.
“Eventbrite was thus deprived of the essential and substantial benefits under the contract, unable to recoup the advance or realise the service and royalty fees for every ticket sold. This resulted in substantial losses for Eventbrite.”
And in the latest document relating to the case, which has a hearing scheduled for May 20, Salford Group and Kailahi – described as defendants – do not come out smelling of roses.
The April 8 order states: “Defendants do not dispute that they were validly served with the complaint but waited for nearly six months, until a motion for entry of default judgment was already fully briefed, to take any action in the case.
“This delay appears to have been tactical, as defendants provided no reason for the delay in their briefing or at the hearing on their motion to set aside entry of default.
“Defendants provided no reason for their failure to respond to Eventbrite’s complaint for nearly six months.
“Furthermore, the 11th-hour filing of their motion, after ignoring numerous prior opportunities to oppose default, suggests that defendants were attempting to manipulate the legal process.
“Refusal to comply with court orders is further evidence that defendants are not simply careless, they are engaging in gamesmanship to the detriment of Eventbrite and the legal process.”
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