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The Government has given Jersey Reds two emergency funding injections totalling £370,000 in the past three months to help keep the struggling rugby club afloat – but could not commit to more due to other pressures on the public purse, it has emerged.
The club announced today that it had ceased trading and that liquidation “appears inevitable” after talks with current and future investors fell apart.
Chair Mark Morgan said the funding situation had left them unable to pay September salaries.
The situation led many islanders to question whether the Government would be willing to step in – but a "saddened" Assistant Minister with responsibility for Sport, Lucy Stephenson, appears to call time on the idea this afternoon.
She said the club had already received extensive support from the previous Government, including during covid, adding: "With the welfare of players, coaches and their families in mind, in the last three months this Government has twice given Jersey Reds short-term grants totalling £370,000 to provide them with the opportunity to try to find alternative funding sources. Sadly, their efforts have not been successful."
Pictured: Deputy Stephenson said the club had already received £370,000 in the past three months.
She continued: "Government could not commit further money at a time when there so many other demands on the public purse – including responding to the cost-of-living crisis – and in fairness to other sports and businesses in the island.
"The Reds' announcement shows how prudent it was for them to separate the professional and amateur arms of rugby. Participation in amateur rugby remains strong, and the minis, juniors, and parts of JRFC will continue to thrive. Government will work to ensure that any impact on the amateur game is minimised."
Jersey Reds has been in financial difficulty for some time, with Mark Morgan pointing the finger at the RFU for funding cuts and a lack of support.
"At one stage at the end of last season it appeared there was a viable way forward for the second tier once the new Professional Game Agreement was implemented from summer 2024, but Championship clubs have been left in the dark since that point and this led to a growing fatigue among those who may have invested, but could not be given any concrete assurance about when the new structure would come in, or how it would be funded,” he said today.
The RFU has hit back, describing it as "extremely disappointing that investors would take decisions at this early point in the season to place the club in such a position".
The governing body said it is "deeply concerned" by the news and added that the Reds "had clear confirmation" on how much funding they would receive before the start of the season.
The statement continued: "This news will clearly impact the season for the Championship league and Premiership Rugby Cup competition, which was introduced this season as a way to offer a new format to supporters, bringing with it the experience of playing Premiership sides and the opportunity to welcome new fans into Championship clubs and assist them to grow new audiences.
"Further information on the impact of this to the Premiership Rugby Cup and Championship League season will follow."
Reds' key sponsor Santander – after which the club's official Stadium, the Stade Santander International, is named – said it was "deeply saddened" by the news, but declined to comment further on the status of its sponsorship agreement.
Pictured: In August 2017, the Jersey Reds' St Peter facility was renamed the ‘Stade Santander International’.
As a result of today's news, Jersey Reds will not be travelling to south-west England tomorrow to fulfil the scheduled Friday night cup fixture against Cornish Pirates.
TIMELINE: How a beloved Jersey rugby team got into the 'Red'...and struggled to get out
Jersey Reds stops trading after investor talks fall apart
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