Premiership rugby team chair Sale Sharks has made a joint offer to buy their current home, the AJ Bell Stadium, with Salford City FC.
Sid Sutton said the move would strengthen their fan base and also put the club in a better financial position.
Mr Sutton added that an official offer would not be made until the future of Super League team Salford Red Devils, which currently shares with Sale, is clarified.
READ MORE: Premiership Rugby Club Sale Sharks are sliding into the red after the pandemic hits finances
The move comes after Sale Shark’s plans to build a new stadium failed last year.
The CEO added that Salford Red Devils “frankly said they couldn’t afford to buy the AJ Bell stadium or rent it, so we were actively looking for a second party to buy the stadium with us “.
He described Salford City FC as “a willing party with great ambitions and a need for a new home” and that they also have the financial means to be part owners of AJ Bell.
Salford City FC currently plays in the second division and is owned by former Manchester United stars Gary and Phil Neville, David Beckham, Ryan Giggs, Nicky Butt and Paul Scholes, and Singapore businessman Peter Lim.
Mr Sutton said: “As all of our fans know, this club has long had an ambition to own our stadium and have a place that can be called home.
(Image: Getty Images)
“We want a home with a brilliant atmosphere that the fans love to come to and we want a stadium that we are in control of.
“One of the options we considered was building a new stadium on the Crossford Bridge Playing Fields in Sale, but as well documented last year, the Trafford Council withdrew its support for this plan in September.
“That was really disappointing for everyone at the club, partly because of the amount of time, money and effort that went into the process, but mostly because we felt that returning the club to its roots in Sale would be the best way to go is to promote growth and secure our future.
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“Since then, our determination to find a home of our own has remained as strong as ever and we have spent a lot of time exploring possible options.
“The option to purchase the AJ-Bell was in the background for a while, but it became quite pressing when our existing lease was due to be extended in July of this year.
“We could have switched to a different long-term lease, but instead opted to accelerate the purchase option. It was very evident that both the existing AJ Bell owners, the community and Peel Holdings, were interested in selling for purely commercial reasons. “
“We firmly believe that if we are to continue expanding the club on and off the pitch, we must invest in a home for Sale Sharks.”
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The chairman also said the “financial structure of the existing lease is not good for the club” and that owning a stadium is “critical” to their future.
Mr Sutton added, “We want to be in control of what we can do in the stadium and right now we are very limited in what we can do, like having a band outside, running fan parks, doing the catering and all that.
“If we improve the fan experience, we believe we will grow the fan base and get more fans for the AJ Bell, and that will also help us grow the club commercially.
Sale Sharks in action at AJ Bell Stadium in Salford
(Image: Richard Sellers / PA Wire.)
“The other point is that the rental costs don’t make sense financially. We want a stadium in which we can generate income other than the match day.
“The financial structure of the existing lease is not good for the club. This is about the long-term profitability of Sale Sharks. Owning our stadium is critical to the future of the club.”
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Commenting on the importance of the offer to the Salford Red Devils, who share the AJ Bell Stadium with Sale Sharks, Mr. Sutton said, “Having your own stadium is so, so important, but we said we will not be making an official offer until Salford Red Devils are looked after or until they have been consulted and found a point of contact.
“That question has been a big factor in the negotiations for me so far. We are a community club and we have a good relationship with the Salford Red Devils. We want to play an active role in securing their future and we are doing everything.” We can do that.
“During the due diligence process, it emerged that staying financially at AJ Bell Stadium was not an option for the Salford Red Devils.
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“Also, they were openly saying that they couldn’t afford to buy the AJ Bell Stadium or stay there as a tenant, so we were actively looking for a second party to buy the stadium with us.
“Salford City FC is a willing party with great ambitions and a need for a new home, they also have the financial means to be part owners of AJ Bell.
“Both Salford City and we fully agree that the Salford Reds must be taken care of before a deal is made at the stadium. Several joint fan forums have been held to ensure that all parties are open, honest and crystal clear with their own Are a fan base. ” .
“It makes good business sense to us, but the most important thing is that the Council and the Salford Red Devils are still looking for other options and we don’t move forward until that is resolved.”