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The Chair of Jersey's amateur rugby club has admitted that that collapse of the professional side could "potentially" result in the loss of equipment used by the amateur teams.
However, Danny McAlister said that the Jersey RFC is "working with the liquidators" to ensure that "everyone is happy".
Whilst all 'immovable' assets such as the land and the buildings are owned by the amateur club, 'movable' assets within that are owned by the professional side – and therefore liable to be sold off in an attempt to repay debts.
He said that this includes, for example, goal posts and line marking equipment.
Mr McAlister explained that it is "hard to be definitive" about what would happen to the equipment as it is "down to the liquidators to decide".
"The liquidators have a legal job to do," he said.
"We are working with them to ensure that the creditors are happy but also that amateur rugby isn't affected."
"If it's the case that we have to buy some of the equipment back from the liquidators then so be it," added Mr McAlister.
The Jersey RFC Chair also confirmed that a company called ‘Jersey Rugby Football Club (2023) Limited’ – was registered with the JFSC one day before the start of the liquidation process was officially announced that
The new company was formed to take over from the collapsed Jersey Rugby Football Club (2016) Trading Limited as "operating company" for the amateur team, he explained.
"It's quite boring... We need somewhere to contract services, so [the new company] has just been set up as somewhere to pay electricity and other bills from," he said.
The amateur teams falls under Jersey Reds (2022) Limited – a separate company which was set up in 2022 "to separate the professional rugby team from the amateur rugby club for the benefit and protection of both the Company [Jersey Rugby Football Club (2016) Trading Limited] and the JRFC".
However, in the Jersey Reds' statement of affairs, an affidavit signed by Brian Morris, Director of Jersey Rugby Football Club (2016) Trading Limited, explained that certain clauses within the operating agreement were not agreed.
Pictured: An extract of an affidavit signed by Brian Morris, Director of Jersey Rugby Football Club (2016) Trading Limited, explains that the companies were never fully split as planned.
This means that the two companies never fully separated as planned.
The full extent of the Jersey Reds' dire financial situation was revealed after creditors met this week – including almost £1.5m in unpaid loans, a tax bill of over £500,000, and the possibility that another £400,000 of public money will be used to pay back a bank loan.
The company's statement of affairs showed that the club's assets were estimated to be worth around £142,714, but debts totalled more than £3.1million.
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