Salford Council have denied categorically a claim made this morning by Salford Red Devils owner Marwan Koukash that the authority owes the club £800,000.
Both sides say they have now instructed lawyers to look at the claim.
On stage in front of fans and the press this morning at the AJ Bell Stadium, Koukash blasted City Mayor Ian Stewart over an alleged promises of financial backing that never materialised.
He said: “I entered into an agreement with the City Mayor [Ian Stewart] and the Deputy Mayor [Cllr David Lancaster] that would have delivered financial support to the club.
“[Ian Stewart] looked me in the eye and said, ‘I’ll deliver’.
“Yesterday I gave the council a 5pm deadline to come to me with a solution. They failed.
“I can tell you the amount owed to the club is over £800,000.”
A council spokesman said the council was disappointed by Dr Koukash’s comments, and wished to put on record that the club “only survived because of the intervention of Salford City Council and the Rugby Football League”.
“It is wholly untrue to say Salford City Council owes the club money and that is in the hands of our legal people,” they said.
“We are grateful to Dr Koukash for taking over the club but need to stress that he willingly signed a legal agreement to take on the debts of the former club.
“It is not unreasonable, therefore, to expect him to honour that agreement and continue repaying that loan.
Dr Koukash said he has never missed a payment on the £1.5 million loan made to previous directors of the club, including former owner John Wilkinson, and that the council have personal assurance from the directors that this money will be paid.
“The council have chosen the easy route and come to my club to collect this money. Go after them. Stop taking money out of our club.
“We pay £300–£400k a year to service the CVA…that could easily pay for a marquee player.
“I’m very grateful to the support that Peel have given the club. They have been fantastic. The council have not.”
The Salford council spokesperson added: “It is also wholly untrue to say Salford City Council has not supported the club.
“Salford City Council has offered extensive support to keep Super League rugby in the city. This is to support fans, maintain jobs and to protect our investment in the stadium which is a catalyst for regeneration.”
“We are very disappointed by his comments today but remain committed to working with Dr Koukash and the club in the interests of the people of Salford.”
The strained relationship continues between Salford City Council and Salford Red Devils.
More detail of the claim is expected to come out of an ongoing press conference this afternoon.
