Salford Red Devils have been deducted three wins (the equivalent of six points) following the club’s failure to meet the terms of a financial commitment agreed to in 2013.
In January 2013 the Salford Football Club (1914) Limited entered into a Company Voluntary Arrangement (CVA).
An application for RFL membership by a new company, Salford City Reds (2013) Limited, was subsequently approved by the RFL Board.
A condition of the membership was that the Club fund the CVA of the old company and that, if the CVA fails, then “the new Club would be deducted 6 points in the playing season in which the default occurs”.
The CVA has now failed, as confirmed by a ‘certificate of non-compliance’ issued by a licensed insolvency practitioner on October 22, triggering the RFL Board sanction.
It is important to note, however, that this ‘insolvency event’ does not relate to Salford City Reds (2013) Limited and does not impact any of that company’s debtor or creditor relationships.
The three-win deduction takes immediate effect. This is in line with the regulatory backdrop and competition framework applicable in 2013.
With no relegation or promotion, a points deduction would have affected only a club’s finishing position.
Salford finished in 14th (bottom) in Super League and therefore a sporting sanction at that time would not have affected the club’s final position.
In 2015, the RFL Board amended its Insolvency Policy following the reintroduction of relegation and promotion, increasing the sporting sanction from six to 12 points (with strictly limited exceptions).
The updated policy applies only to insolvency events since 2015.