The Mayor of Salford said that the decision not to help the city`s Super League club get its finances in order had left him with a heavy heart.
Salford City Reds are due to face a winding-up petition on January 7, an action started by sponsor Steur Gregsson but continued after its settlement by HM Revenue and Customs and two former players, Vinnie Anderson and Luke Patten.
It is thought the club had asked Salford council to loan them #750,000, with a similar amount coming from Peel Holdings, the owners of their City of Salford Stadium.
But speaking to today, mayor Ian Stewart conceded that the current economic climate meant it was unfeasible for the council to lend a hand.
"Times are tough and, in many ways, the Reds are yet another victim of the recession," Stewart said.
"We would have loved to try and help them out, but given the spending cuts the city council is already facing, that proved impossible."