Council takes over rugby stadium in buyout deal

The deal will see Salford Council buy out the Peel Group 50 per cent stake in the ground.

A council has sealed a deal to take over a rugby stadium in what a city mayor has called a "landmark decision".

Salford City Council's cabinet will take full ownership of Salford Community Stadium and buy out The Peel Group's 50% stake.

The ground is home to rugby league side Salford Red Devils and the rugby union club Sale Sharks.

Salford City Mayor Paul Dennett said although the acquisition had "rugby at its heart", there would be "many more benefits".

'Hugely important'

The buyout, understood to cost more than £2m, includes training pitches and the surrounding land, which is expected to be sold for regeneration projects to finance the deal.

It comes after a 12-month extension to the stadium lease was granted to Salford Red Devils, which had raised concerns it would struggle to survive without a long-term home.

Mr Dennett said the move would secure the club's future, "but also the future of rugby across the city" by helping "hugely important" grassroots club that use the community pitches.

Sole ownership allows the council to open up the surrounding land for redevelopment, creating new jobs and "attracting significant private sector investment", he said.

Mayor of Greater Manchester Andy Burnham said Salford Council had taken an "important step to protect our city-region’s great sporting heritage".

The move has also been welcomed by Nic Beech, vice-chancellor at Salford University who said it was a "significant step forward" in the regeneration of the city.