What's happened (or rather, I suspect, what do you think has happened) to the RFL's financial situation?!

Excuse me!!!!! I'm assuming that the RFL is not capable of helping to bail out 2 clubs in every 12 month period, do you?

Not sure they have actually lost any money on Bradford and, yes, they have the reserves to help Salford. Belts are being tightened due to the reduction in Sport England funding which the RFL may or may not attempt to mitigate from their other revenue streams. But when clubs need help, the RFL has generally been there with funding and other assistance.

Well Hallelujah!!!! No matter if clubs just run themselves into the floor then, we have a benevolant RFL that will be like a big friendly, wealthy uncle. Why should clubs bother to make an effort? The cap is not helping to ensure clubs are run within their means, just forceing the game into a spiral of decline, where all our best players will leave to chase the money, and who could blame them... i would do exactly the same, and so would you.

What might concentrate peoples minds to how dire the Salford situation is was the news that came in the M.E.N today.
Mobile phone contracts for certain staff members where terminated in the last 24 hours,due to non payment of bills.

Welcome to the 21st Century. Even the mighty Wendyball Prissy League would collapse if TV money were taken away from them. They have much higher income from sponsorship and so on, but not enough to cover their costs. We're in the same situation, just dealing in smaller sums.

Thanks for the welcome...

Wendyball has relegation, we do not. So our clubs have a safe environment in which to operate. All that the clubs in SL have to do is balance the books, and they can't do that!!

......and when you get relegated from the Prissy League, they hand you 'parachute' payments worth millions to allow you to keep spending daft money on your player contracts. No TV = no parachute payments, so the equation is the same, relegation or not.

A simple solution to clubs overspending, force clubs to only budget to spend 90% of their previous years income, if they want to spend more, they must increase income " Simples " as the little furry animal says

or bring in a rule that says any losses must be covered that year via share ownership and not loans.

But that doesnt cure the problem, it just treats the symptoms

potentially, the RFL could ask for teams business plans to be filed prior to the season start, to show how the books are supposed to be balanced over the year.
If the RFL arent happy, then the books get returned and Club has to submit a remedial plan (eg reduce wages) before being allowed to compete
The previous years trading accounts can be used as a baseline to ensure that the figures match-up.
At the end of the season, the books could be submitted again for review by the RFL auditors, and any fundamental discrepancies could lead to a lower cap for the following season.

Once again, it doesnt cure the problem

How many wendyball Premiership clubs make a profit???? err none I presume all are in debt to the banks to a large deficit its only the money from SKY ,ESPN ,and other media stations that keep them afloat and the Banks know that the guaranteed payments from the media companies keep them afloat.

It cures the problem, the problem isn't needing external funds its not covering expenditure. You dont improve the sport by reducing costs, even though no P&R allows this and probably explains the deteriorating product.

I am not suggesting reducing costs, I am suggesting increasing income, not donations

Spend 90 % of previous years income, any extra is spent on marketing to increase following years income, to increase spending clubs have to invest in marketing

Most income is donations, fans donate when they buy a ticket - unless I have missed some sort of sale or return offer. Business's donate via sponsorship etc - unless I have missed a guaranteed return on investment clause somewhere. Directors donate as they should never expect to see that money again etc etc

With uncanny timing, a Prem football team close (or not so close take your pick) to our hearts has this morning announced a profit of £4.3 million.

[urlhttp://www.guardian.co.uk/football/2012/dec/31/wigan-athletic-report-annual-net-profit[/url
One swallow does not a spring as the previous years losses prove they only made a profit trimming the wages and selling players.

There have been very interesting developments in the ongoing talks to try and come up with new investment for the Salford Reds.
When talks between the proposed new investor Mr Marman Koukash,Peel Holdings,Salford City Council and RFL CO Mr Nigel Wood began, Mr Koukash was being advised by a Mr Andrew Chalmers who has previously served the New Zealand International board. The talks between these parties has been going on for a week,it has been announced in this evenings Manchester Evening News that Mr Koukash has enlisted the advice and help of another two high profile figures from within the NRL who have flown in to take part in the talks.
They are Mr Ed Farish the former NRL finance officer (he is now involved with the Gold Coast Titans) and the former Wigan and New Zealand coach Grahem Lowe who is an associate of Mr Chalmers.
What I find strange is that it is said that the Salford club have not been involved in these talks,but are being kept informed by Nigel Wood.
It is also said that Mr Koukash is not only interested in investing in the Club but he is talking to Peel and the Council with a view to buying the land and the Stadium.
Seems that they are playing for high stakes here.

The club has no assets and is mired in debt so the current directors have nothing really to add to any discussion regarding the takeover (except a few issues over liability for existing debt).

The club is in debt to the council (who also own the ground with Peel Holdings as part of a joint venture) so all the talks are centred on these parties. The RFL have seemingly facilitated the deal with Koukash so they are presumably hoping to smooth any issues over.

It appears Koukash is looking to get a better deal for Salford in relation to the ludicrous terms under which we have to play at Barton and to get more access to greater revenue streams from the ground. This can only be a good thing and hopefully Peel and the council realise sharpish that he holds all the cards and sign up or otherwise the club is going under.

If that is the case good luck to him. I was very surprised when I found out they by moving to a new ground Salford were on for less revenue than from the old place. Modernising is supposed to be a good thing!

I suppose it doesn't matter if you have a favorable lease as Wigan do and have a big supporter base also as Wigan do but it just seemed nuts Salford needed to get 8000+ every game or otherwise the new ground was a millstone.

A popular misconception, own/run your stadium even if it is a dump still provides income, shiny new rented stadium works if you can get the numbers, kills you if you dont

Still far from convinced we have great terms on the lease.

The sums for moving to the new ground were done on the back of an envelope with no real thought if it was realistic. When the prospect of us owning the ground went, we had no choice to move as The Willows had already been sold and Salford just carried on as if the figures still all added up.

If reports are to be believed Koukash has attempted to buy the ground from Peel/Salford council but my guess is Peel will put a block on this as they can afford to play the long game. Salford council would probably be willing to cash in given the chance.