Salford Red Devils hit with winding-up by tax authorities
Rugby league team Salford Red Devils was hit with formal legal action by HMRC over unpaid bills.
According to the High Court claim system, as seen by CityAM, the tax authorities filed a winding-up petition order against Salford City Reds on Wednesday.
The petition was filed against Salford City Reds (2013) Limited, which is the operating company for the Salford Red Devils club.
A winding-up petition is a profound statement of intent by a creditor to shut down a company due to unpaid debts through compulsory liquidation.
Earlier this week, The Sun reported that the club owed HMRC £500,000.
The Salford team has been plagued with financial issues. In March, the club issued a statement after the team failed to pay players and staff on time for the second time this season. The club noted, “It remains difficult for everyone at Salford Red Devils.”
In February, the club announced a new ownership consortium led by Dario Berta, CEO of Matanel, an investment bank specialising in real estate.
While The Guardian reported that the Rugby Football League has kept the club to a sustainability cap, which limits them to using players who would only cost £1.2m for the season.
Salford finished the 2023 Super League season in 7th place.
This is not the first winding-up petition the club has received. Since 2016, the High Court system has shown 12 petitions against the club, with the majority created by the HMRC.
The Red Devils joined a range of other rugby league clubs, including Halifax Panthers, that were targeted by HMRC for unpaid tax bills last October.
When approached for comment, a spokesperson for Salford Red Devils said the club is aware of reports and are currently reviewing the matter.