Salford City Reds’ future is in doubt after Salford City Council rejected a rescue plan for the troubled club. The council had been asked to loan the club £750,000 until November, with Peel Holdings, who own their Salford City Stadium home, also loaning £750,000. But the local authority rejected the plan after expressing concern over its financial viability and the level of risk involved with making the loan.

State of mind are thinking about all the players, their families, staff and fans of this great club at this really difficult time.

Salford are already the subject of a winding-up petition. It was thought the Super League side, who have already received £1.5m of investment from the council, were close to administration in October after club sponsors Steuer Gregsson sought an overdue payment and issued a winding-up petition.

A settlement was agreed, but another hearing has been scheduled for 7 January after two former players and HM Revenue & Customs joined the petition.

Luke Patten and Vinnie Anderson, who both left the Reds at the end of last season, each claimed they were owed around £40,000 after entering into a “salary sacrifice” arrangement – giving up the right to receive part of their wage, usually in return for some form of non-cash benefit – during their time with the club. Meanwhile, Revenue & Customs said they were entitled to around £50,000 of unpaid tax.

Salford stressed at the time that they expected the matter to be resolved before January but now there is fresh doubt over their future. Salford City Reds hoped to attract attendances of around 8,000 to home fixtures in 2012 – the final average figure was just under 5,500

Salford City mayor Ian Stewart said: “Times are tough and, in many ways, the Reds are yet another victim of the recession. “We would have loved to try and help them out, but given the spending cuts the city council is already facing, that proved impossible.”

Reds chairman John Wilkinson had appealed on several occasions for new sponsors and investment and had often been forced to deny reports of the club being on the verge of administration. He has also admitted that their relocation to their new £26m ground at the start of 2012 had denied them of a number of revenue streams.

State of Mind wish everyone at the club all the very best in trying to sort out the financial situation