Salford face winding-up petition by club sponsors

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The Independent Online

Salford City Reds say they are confident of avoiding entering administration after becoming the subject of a winding-up petition.

The petition has been brought by club sponsors and management consultants Steuer Gregsson Limited and will be heard in Manchester on Monday week.

Salford's long-serving chairman, John Wilkinson, said yesterday: "It is a very small amount of money involved and we've brought in experts to deal with it for us."

Ironically, Steuer Gregsson, a company based in Cheshire, was brought in by the City Reds to prepare the club for new investment. The Reds, who moved out of their ground at The Willows in 2011, were hoping the move to their £26m City of Salford Stadium in February would help to improve their finances. But crowds were disappointing in their first season in their new home and, although rental costs were eased by a ground-sharing arrangement with Sale Sharks, they have been desperately seeking new backers.

The club avoided a winding-up petition in April over late payment of a tax bill and in June made chief executive David Tarry redundant.

Castleford's Rangi Chase is in talks with his old Australian club St George Illawarra. The 2011 Man of Steel has been the subject of increasing speculation and Castleford have acted to quash rumours he had signed for the Dragons. Tigers' chief executive, Steve Ferres, said: "Rangi is in talks with the club but, to date, no transfer has been agreed."

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