Rugby league club Salford Red Devils is facing formal legal action from HM Revenue and Customs (HMRC) over unpaid debts.
According to the High Court claim system, seen by City A.M., HMRC filed a winding-up petition on Wednesday against Salford City Reds (2013) Limited, the operating company behind the Salford Red Devils. A winding-up petition is a serious legal manoeuvre by a creditor signalling intent to force a company into compulsory liquidation due to outstanding debts.
The action comes amidst ongoing financial struggles for the club. The Sun reported earlier this week that Salford owes approximately £500,000 to HMRC. This follows a series of financial setbacks. In March, the club admitted to failing to pay players and staff on time for the second occasion this season, stating publicly, “It remains difficult for everyone at Salford Red Devils.”
In February, the club announced a takeover by a new consortium led by Dario Berta, the chief executive of Matanel, an investment firm specialising in property. Despite the change in ownership, financial strain appears to persist. According to The Guardian, the Rugby Football League (RFL) has imposed strict financial limits on the club, capping spending on players to £1.2 million for the season in an attempt to ensure financial sustainability.
Salford Red Devils finished seventh in the 2023 Super League season. This is not the first time the club has been served with a petition of this kind. Since 2016, there have been 12 such petitions against the team, most instigated by HMRC.
Salford is not alone in its troubles. Several other rugby league sides, including Halifax Panthers, have faced similar legal action over tax debts, with HMRC issuing a winding-up petition against Halifax in October last year.
A spokesperson for Salford Red Devils said the club is aware of recent reports and is currently reviewing the matter.
