Salford council's bid to buy Salford Reds' AJ Bell stadium may be 'illegal'

manchestereveningnews.co.uk:

Salford city council's plans to buy the AJ Bell stadium could be 'illegal', opposition councillors have alleged. Coun Robin Garrido is due to meet Salford’s chief finance officer Joanne Hardman and chief legal and monitoring officer Iolanda Puzio over the plan by city mayor Paul Dennett to take full ownership of the AJ Bell Stadium.

The Tory leader wants the two bosses to look into his claim that the city council would breach Section 5 of the Local Government and Housing Act 1989 if it was purchase Peel’s 50 per cent holding in the stadium.

He told the Local Democracy Reporting Service (LDRS): “It appears to us [the Conservatives] that the city mayor and/or the council is about to take steps or consider taking steps which would constitute maladministration.” READ MORE: Callous dad-of-six pounced as helpless woman took her shopping in from the car Under the proposal due for consideration by the authority’s cabinet the stadium would become the Salford Community Stadium (CoSCoS).

Coun Garrido went on: “The outstanding debt on CoSCoS is about £37million and operational activity has failed to generate the capacity to repay this debt. “This is evidenced by the continuous requests for funds to solve the rugby club’s cash flow crisis, the most recent loan amount being £350,000 as well as the inability to raise sufficient funds from all other activities.” He said that it should also be noted that up to £1.5m is still owed to the council from the previous stadium club/building owners. “The report [to the cabinet, seen online on the city council’s website ahead of the meeting] also states that the asset value of the land may not currently clear all the debt,” said Coun Garrido. “If the city mayor and council were to proceed