Championship holders Jersey Reds become latest English club to collapse

The champion Jersey Reds have declared that they have “ceased trading” as a result of financial difficulties.

The team, who have won the title the previous season and competed in the second division of English club rugby for the past 11 years, formally ceased operations at 5.30 p.m. on Wednesday after admitting they would not be able to pay the salaries that are due this week to its staff and players for September.

“Liquidation appears inevitable unless a solution can be found in the very short term,” the Reds acknowledged in a statement.

The club was hoping to survive until they found a new investor, therefore Jersey’s government gave £370,000 in short-term payments. However, COVID-19 costs and decreased funding have now made them the most recent English rugby team to fail.

Chairman Mark Morgan issued a statement saying, “We regret that our conversations with potential new investors as well as existing ones have been unsuccessful. We had been able to start the season and maintain sufficient funds to cover the summer.”

At one point towards the end of the previous season, it looked like there would be a viable path for the second tier once the new Professional Game Agreement was put into place starting in the summer of 2024. However, Championship clubs have been kept in the dark ever since, and this has caused a growing sense of fatigue among those who may have invested, as they were unable to receive any firm guarantees regarding the introduction of the new structure or its funding.

“We regret the significant impact this will have on all of the players, coaches, and other staff members who have made significant contributions to the club in recent seasons—it’s a very sad day.”

“It is extremely disappointing that investors would take decisions at this early point in the season to place the club in such a position,” the Rugby Football Union (RFU) said in a statement in response to the news.

“We have been working with the Championship and Premiership Rugby on the new Professional Game Partnership and shape of Premiership 2, with funding levels to be confirmed at the end of this calendar year. Championship clubs received clear confirmation from the RFU regarding funding for the 2023–24 season.”

Since February, the Championship has actively participated in these talks, which are intended to stabilize and improve the professional game.

Harvey Biljon, the director of rugby for the Jersey Reds, said to BBC Channel Islands: “I’m really surprised right now. Without exception, we have stayed within our allocated budget, avoided overspending, and stayed in our lane.

“We don’t pay outrageous wages; our playing squad’s average [yearly] salary is £25,000, so I’m just astonished that we’re the Championship champions and we’re in this situation,” the player said.

The game that Jersey was supposed to play this Friday against the Cornish Pirates has been postponed. As a result, the club’s impressive start to the Premiership Rugby Cup—which included victories over Bath and London Scottish—is probably over.

The Reds, who came through the trapdoor after Worcester Warriors, Wasps, and London Irish, are the fourth English rugby team to fail in the last 12 months.