Salford council is set to approve a loan worth up to £120,000 to the company behind the AJ Bell stadium - bringing the total amount of cash the town hall has injected into the development to more than £25m.
The council already agreed a loan of £670,000 in September, but it’s now looking to top up that figure.
A town hall report said there is ‘pressure on the cashflow of the stadium,' which it puts down mainly to costs associated with a compulsory purchase order affecting the stadium's land.
It added: “This matter is now settled however non-recurring costs were incurred which form the basis for the additional request for a working capital loan.”
Councillors in a briefing next week are being recommended to agree the loan to CosCos - which is jointly owned by the council and Peel Holdings and is responsible for the management of the stadium and the land around it.
If approved, Peel will match the loan.
Council papers argue that interest payments receivable from CosCos in 2018/19 exceed the loan.
The stadium, they said, is ‘broadly’ at a break even position.
But until the land around the venue is sold, further working capital funding will be required, they add.
The stadium is home to Salford Red Devils and Sale Sharks, and has also been used as a concert venue.
The first plot of land outside the stadium was sold to pub chain Greene King and two further plots are ‘nearing sale', council documents said.
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Further sales of development land are ‘in the pipeline,’ including retail and leisure options, they add.
Discount chain Aldi announced last year that it is planning to build a new store next to the stadium.
At the end of March 2018, there was an outstanding loan of £16m for the actual building of the stadium. Operational funding loans went up to £8m.
The £120,000 - if approved next Monday - would be on top of that.
Salford council has been approached for comment.
