Jersey Reds to enter liquidation after Championship club funding pulled by Jersey government

Championship rugby club Jersey Reds are to enter liquidation after the Channel Island's political leaders voted to pull their funding.

Jersey, who are the Championship title holders, announced last week that they were forced to cease trading after they were unable to pay their players and staff's salaries for September, despite receiving £370,000 in short-term grants from the Jersey government to help the club until a new investor could be found.

The Reds, who add also started the season in the Premiership Rugby Cup, cited the Covid-19 pandemic and reduced funding as the two main causes for what they called 'inevitable liquidation' in their statement last week, and they become the fourth professional club in England to collapse this year, following Worcester, Wasps, and London Irish.

A statement from the club said: "We are bitterly disappointed at the decision in the States Assembly regarding government funding, but hardly surprised.

"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."

A statement from the club on Wednesday revealed that the decision of the Jersey government to stop their funding had forced other investors, who the Reds had said had made pledges of £500,000 for the new 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."

Jersey's perilous position means that they will not be able to start the new Championship season, which starts on October 20, with the Reds set to face Coventry the following day.

The Reds had already completed three matches in the Premiership Rugby Cup this campaign, winning two, before their fixture to Cornish Pirates last week was called off.

They were due to face Ealing Trialfinders on Friday 6 October but that match, and all subsequent fixtures, has also been cancelled.

A fund has been created to support Jersey players affected by the club's liquidation, while the RFU has issued its support for players and staff.

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