Lions roar again thanks to £60,000 council loan
HELP FOR RUGBY LEAGUE CLUB IN CRISIS
A HISTORIC rugby league club which was facing extinction due to a financial crisis has been bailed out by Salford council.
The town hall has given Swinton Lions a loan of £60,000 to secure its future.
Last month, Steve Moyse, chairman of Swinton Lions Supporters’ Trust, told the M.E.N. he understood the club’s debt to be in excess of £100,000 and said an HM Revenue and Customs tax hearing was looming.
The loan was confirmed in a private meeting by Deputy Mayor, John Merry, with no other councillors present.
Coun John Merry said: “The council has stepped in to rescue the team. The money is guaranteed through a structured loan over three years.”
The club said in a statement that financial difficulties had placed it in a ‘precarious position’ and revealed the Rugby Football League was providing ‘logistical’ support.
The loan is to be guaranteed by Lions directors and is to be repaid with interest.
A council decision notice says it will ‘assist in meeting the short-term challenges – providing a stable base from which the club should become more sustainable.’ Although the deal was made behind closed doors it is not on the same scale as one the town hall did with Salford Red Devils, which triggered criticism from opposition Tory councillors and prompted an internal audit investigation. The then city mayor, Ian Stewart, deputy David Lancaster, and council monitoring officer, Martin Vickers, agreed a £164,000 support package to Salford Red Devils in July 2013. No record was kept of the decision and the then chief executive of the council, Barbara Spicer, was not told. Swinton bosses have revealed that staff and player salaries were only just met in June and said discussions with potential investors were ongoing. The fans and Supporters Trust have done impressive fund-raising to keep the club alive. A JustGiving appeal says the Lions have ‘experienced a major financial crisis which if not addressed could possibly see the end of this great club.’ An official statement issued by Swinton Lions on July 31 read: “The last few weeks have been incredibly tough and stressful for all concerned, but hopefully we are now beginning to see some light at the end of the tunnel.” Swinton Lions