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Inaccurate information about Coventry Rugby in a report shared by a former Minister as part of a bid to rescue the Jersey Reds – including salary figures 200% higher than the reality – has done "considerable" damage to its brand, according to the club...
Last week, Deputy Lyndon Farnham called on the Government to provide more funding to the Jersey Reds, after it emerged that the local rugby club had ceased trading and were on the brink of liquidation, having failed to pay September salaries.
To support his proposition for funding, Deputy Farnham shared a 'Business Model Review' of the club, penned in July 2023 by Santander International – the key sponsor of the Reds' St Peter home turf, the Stade Santander.
This document claimed that "the economic value of Jersey Reds to the island is estimated at between £3m and £6m per annum".
The Business Model Review also sought to illustrate the sensible spending of the Jersey Reds by comparing the club's staff costs to other Championship rugby clubs.
The document compared the Reds' £1.1m of staff costs to those of Coventry Rugby, which they said had an annual player salary spend of over £2.5m in 2022/23.
Pictured: The 'Business Model Review' of the Jersey Reds claimed that Coventry Rugby spent "£2.5m plus" on player salaries in 2022/23.
However, Coventry Rugby Ltd has now released a public statement slamming the claims about their spending as "entirely untrue", saying that the £2.5m figure overstates their actual player salary budget by more than 200%.
The rugby club also says that they requested a further statement be made to correct this, "but have received no response".
The statement reads: "We are a club that operates within its means on a prudent basis.
"We do this by building a team of predominantly young Midlands-based, English-qualified players who we develop through our outstanding rugby programme.
"The potential damage done to our brand and business by this irresponsible and untruthful statement is considerable."
Pictured: Coventry Rugby Ltd described the "potential damage" of "this irresponsible and untruthful statement" as "considerable".
It continues: "We confirm to our supporters, financial partners, staff and players that the statement is entirely without factual merit and should be treated as such.
"We reserve the right to pursue action against those responsible if this error is not speedily redressed."
Deputy Farnham responded to the statement, explaining: "It's a matter for the authors of the report but they should respond to provide clarification of their figures or rectify any mistakes."
Santander International declined to comment.
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