Jersey Reds to be taken into liquidation

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.

They are are 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."

End of an era

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 being 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.

More to follow.