Jersey Reds: Championship club to enter liquidation after funding rejection

Jersey Reds' final game was on 23 September, when they hosted a Premiership side in a competitive game for the first time - as they lost to Exeter in the Premiership Rugby Cup

Jersey Reds are set to enter liquidation after the island's politicians voted against financially supporting the Championship club for the rest of the season.

The Championship title-holders announced last week that they were to cease trading after being unable to fulfil September's payroll.

They are the fourth professional club in England to collapse in a year.

Premiership sides Worcester, Wasps and London Irish have all folded.

"We are bitterly disappointed at the decision in the States Assembly regarding government funding, but hardly surprised," a Jersey Reds statement read.

"We are proud of what the Reds achieved over the years in consistently difficult circumstances.

"The opportunity to support a valuable asset has been let slip and the Island will be the lesser for it.

"Given the decision and in the absence of a 'white knight' we now have no option no but to move our trading vehicle into liquidation. Details of the liquidator will be gazetted in the near future."

It means any hope of the club being able to start the season are gone, after there had been hopes that they could feature in the Championship if they were to get fresh funding before matches started later this month.

A fund has been set up to support players on then island who need financial help, while the Rugby Football Union says it will also support players and staff who have been affected.

Government funding key to future of club

Director of rugby Harvey Biljon (in grey top) and Jersey Reds supporters gathered outside Jersey's States Assembly on Tuesday as the debate over the club's future began

In a statement on Wednesday Jersey Reds said the decision of Jersey's politicians not to put more funds into the club forced other investors to pull out.

The club said they had pledges of more than £500,000 for this coming season, but were 'contingent on GOJ (Government of Jersey) support'.

"When GOJ declined the final £350k support on 27 September this funding fell away and the directors of Jersey Rugby Club (Trading) Ltd resolved to cease trading on to protect the interests of all creditors."

But Jersey's government felt they could not justify putting more money into what was essentially a private business, when they had other funding pressures to consider.

"In colloquial terms, I would liken the Reds finances to a financial 'black hole'," Deputy Kirsten Morel, Jersey's minister for economic development, tourism, sport and culture told the States Assembly.

"Despite knowing about their financial problems, the Reds had consistently overspent and drawn down investors' money at a much faster rate than expected."

End of an era

Jersey won the Championship title last season for the first time in their history

The Reds' demise brings to an end a 15-year rise that had seen the islanders go from the amateur ranks of London South West Division Three all the way up to the top of the second tier.

They signed two professional players in 2006 and gradually grew their side to became the first-ever professional sports team in the Channel Islands, and regularly pulled in crowds of more than 2,000.

Under director of rugby Harvey Biljon - who had been celebrating a decade in the role - they avoided relegation in 2013 and gradually improved as they scored memorable victories over the likes of Worcester and London Irish.

Last season they reached their pinnacle, beating Ealing to the Championship title before losing to the London side in the Championship Cup final in May.

This season had started superbly on the field, with a big win over London Scottish in the Premiership Rugby Cup before beating top-flight side Bath at The Rec.

Their final game was a 43-22 loss to cup holders and former European champions Exeter at St Peter.

But off the field they had increasing funding problems.

Jersey's government gave the club £370,000 of emergency funding over the summer to ensure they could start the season, but when extra funding was not forthcoming investors pulled out and the club went bust.

Between 2019 and 2022 the club received £575,000 from island taxpayers to help fund the side.

It was the second time the islanders had encountered financial issues - in November 2016 the club had to sell and lease back their ground to cover a £1.5m debt.

They bought the ground back in February 2018 and appeared to be on a sounder financial footing, but the pandemic saw a cut to funding for second-tier clubs from the Rugby Football Union from more than £500,000 in 2020 to just over £150,000.

Last year the Reds split from Jersey RFC to become a separate entity, meaning the amateur side which runs community and women's teams in the island is still trading.

But Reds' demise means they will have to cover costs previously covered by the professional side.

Analysis - 'A much-loved side that put island on sporting map'

Brent Pilnick, BBC Sport

This is a heart-breaking moment for Jersey Reds and the island's sports scene in general.

I first covered the club more than 20 years ago as they played in the amateur leagues and watched on as they motored through the divisions up to the second tier.

But as with all sports teams, making money out of the venture was incredibly difficult - even in a place such as Jersey, which is seen as a tax haven and has a number of wealthy residents.

Reds met with more than 30 high net worth individuals to try to secure new funding this year, but to no avail.

It raises more questions over the financial health of club rugby union in England, while for Jersey it sees the demise of a much-loved side that helped put the island on the sporting map.