Cash-strapped Jersey Reds will get no more public money.

Wednesday 04 October 2023

Jersey Reds will receive no more funding from taxpayers after States Members voted against a proposal that public money be used to allow the cash-strapped rugby team to complete the current season.

Following six hours of debate in the Jersey Assembly, Members voted by 29 to 13 against Deputy Lyndon Farnham’s proposition.

The vote came a week after the Government told Reds' board members that no further funding would be added on top of £370,000 of funding provided in two parts in June and August of this year, leading to a decision for the club to cease trading at 17:30 last Wednesday.

Jersey Reds were due to host Ealiing Trailfinders in Round 5 of the Premiership Rugby Cup on Friday night, that game has now been officially cancelled, while their Championship campaign was due to begin on 21 October.

Introducing his proposition to the States of Jersey Assembly on Tuesday, Deputy Farnham estimated that each pound spent by the Government to support the Reds brought around £25 in economic benefit to the island.

But Ministers lined up on Wednesday to say that they felt unable to support further funding – including Treasury Minister Ian Gorst, who said: “It does not give anyone any pleasure, but I don’t think there are any other options than, with a heavy heart and being grateful to the Reds for what they have done, than to say we can’t accept this proposal.”

As debate continued this morning, Jersey Reds issued a statement hitting back at claims made by Ministers in reports and a statement issued beforehand.

They denied that they had rejected offers to meet Deputy Lucy Stephenson, who holds political responsibility for sport.

They also said that representatives from Jersey Reds chased for an update on a Government decision for additional funding in the eight-day gap between the Council of Ministers deciding not to provide money – a decision taken on 19 September – and the club being informed.

The Reds statement continued: "We understand [Deputy] Lucy Stephenson stated yesterday that we have been rejecting offers to meet with her, this is untrue. The last meeting we had with her was in November 2022. We have received no requests to meet with her since then. And in the two recent meetings with ministers, she did not even bother to turn up even though others joined remotely. It seems strange that a Sports Minister would show so little interest in interacting with what is the island's pre-eminent sports club, particularly where there so much government financial involvement.

"[Deputy] Kirsten Morel refused to provide an update of the decision of 19 September Council of Ministers [meeting], despite two email requests, until eight days after the decision was taken. Even then, he provided it to an incorrect party who was not an officer of the Jersey Rugby Club (Trading) Ltd which was the vehicle to which the government was providing funding. This failure to provide any update immediately, effectively condemned the Reds to cease trading as there was no time to find an alternative solution with just hours left until funds were required to pay wages. An update on day one would have at least given the Reds a chance to try to bridge the gap."

They also highlighted that "outstanding items around deferred taxes and [a] covid loan" – information made public by Ministers in advance of the funding debate opening yesterday – had been "through due process with and agreed by Government and are like the support offered by Government to many businesses in Jersey".

Jersey Reds had cumulative losses of £2.6m since 2017 and an outstanding tax bill of more than £450,000, according to the statement by  Ministers.

A relief fund was set up at the end of last week to allow islanders to help the team.

This will be closed on Friday. 

“We would like to express our gratitude to everyone who has generously contributed to this fund. Your donations have been sincerely appreciated,” Jersey Reds said.

Hawk Group were also praised on Monday for stepping in to support the Reds with September salaries.

Long-time Reds supporter Dominic Boletta – who organised a rally at their home turf on Friday, and one outside the States Assembly yesterday – has also launched a petition in support of the club.

Entitled 'Save Jersey Reds Rugby', the petition reads: "The collapse of Jersey Reds Rugby cannot be allowed to happen – the Government must step in and help fund the only professional sports team in the Channel Islands.

"The island, more than ever, needs this revenue, and the sports tourism the club brings leads on to general tourism."