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The Government has categorically denied reneging on a promise of help for the Jersey Reds at the last minute, prompting the shock collapse of the club.
It had also been alleged that the decision on whether to provide additional funding was taken at a Council of Ministers meeting last Tuesday, but only conveyed to the club on Wednesday – the day before staff salaries were due to be paid.
However, Assistant Economic Development Minister Lucy Stephenson, who holds political responsibility for sport, strongly denied that additional cash had been offered and said a £370,000 injection paid in July and August was merely emergency funding to protect the livelihoods of players and staff.
A source close to the club claimed the club believed there would be more funding from Government to help the Jersey Reds through the season – bringing the total to around £800,000 – before an anticipated restructure from the RFU, which was hoped would provide more funding for second-tier sides. The club also felt that it would not be able to secure further private funding from investors without continued Government support, the source claimed.
The club was reportedly aware that any additional funding would need to be signed off by the Council of Ministers, but the source claimed they had been given no reason to believe that this would not be forthcoming. They also did not receive any indication from Chief Minister Kristina Moore when she attended the match with Exeter Chiefs on Saturday, it was alleged.
Deputy Stephenson, however, said she had been clear with the club's board that she didn't believe ongoing funding from Government to be "appropriate".
Pictured: A final funding decision was made by Ministers last week.
Jersey Reds, along with other Championship clubs, have regularly faced battles with the organisation over funding for the second tier.
Initial discussions for the restructuring of English rugby hinged on plans for two leagues of 10 professional teams each with promotion and relegation between the two, with Premiership 2 sides being given £1 million per year in central funding from the start of next season.
However, Jersey Reds Chair Mark Morgan alleged that clubs had later been "left in the dark", leading to a "growing fatigue among those who may have invested, but could not be given any concrete assurance about when the new structure would come in, or how it would be funded" as it was announced on Thursday that the island team had ceased trading.
The RFU later hit back, describing it as "extremely disappointing that investors would take decisions at this early point in the season to place the club in such a position".
Jersey Reds had been due to face Cornish Pirates in the Premiership Cup tonight, but, instead of meeting at the Airport on Thursday morning, players and staff were called to an emergency meeting to be told that Jersey Reds has ceased trading and was on the brink of liquidation.
Several Reds stars have since said they were told that this was due to an "investor" pulling out from the club – sources said the "investor" referred to was the Government of Jersey.
When asked whether a further funding offer had been made and subsequently withdrawn at short notice, Deputy Stephenson said: "Absolutely not. As far as I am concerned I made my position on funding Jersey Reds very clear on numerous occasions over the past year to Jersey Reds and to the directors: that I didn't believe it was appropriate for Government to invest those significant amounts of money on an ongoing basis.
"This is not a story of Government not supporting Jersey Reds so they go under."
She added that "any suggestions that the Government was an investor that pulled out at the last minute is inappropriate and wrong", and that there was "never an offer on the table from Government".
Chair of the Jersey Reds, Mark Morgan, told the June edition of Connect Magazine that research had suggested the"direct benefit" to the island to be around £5m per year.
Documents since seen by Express and the JEP valued the economic benefit of the club as being between £5 and £6 million per season. An independent report carried out several years ago – and referenced in the 2020-2023 Government Plan – placed the figure at "up to £2.1 million a year".
While some on social media have said they understood the Government's difficult position and supported their ultimate decision, others have criticised Ministers for not doing more for what they see as a valued part of the economy and island life.
#jerseyreds pic.twitter.com/CkRjbca8CG
— Lennon (@averagefrancais) September 29, 2023
Pictured: A meme circulating on social media criticising the Government's decision not to provide more funding to the Jersey Reds.
Deputy Stephenson said that numerous reports gave different figures as to the benefit to Jersey of the club and said the Council of Ministers had come together to decide not to invest more money into the club.
"The very clear message around the table was the Government does not feel it appropriate at this time," she said.
"The job of Ministers is to assess a request or a business case on evidence or data and weigh up not just value on social and economic factors but also about the public interest of spending taxpayers money."
She said that she did not know how or when that decision was conveyed to the club.
A relief fund has been set up to support the players and workers affected by the club's demise.
The fund will utilise an independent account, overseen by co-signatories Harvey Biljon (Director of Rugby) and Nicola Dando (Welfare Manager).
The initial aim is to cover the September salaries, with any funds in excess of this being split equally between those affected.
The Rugby Players Association (RPA), which represents hundreds of players nationally, has also leant its support to the team.
"Following the incredibly sad news regarding Jersey Reds yesterday members of RPA staff and the RFU legal team met with senior representatives of the playing squad," Christian Day, RPA General Secretary explained.
Follow Express for updates...
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