Jersey Reds buy back home turf

Wednesday 14 February 2018

Jersey Reds have agreed a new loan so they can buy back their clubhouse, pavilion, stands, car park and both rugby pitches, which they were forced to sell in November 2016.

Due to ‘further than anticipated’ financial difficulties the rugby club sold the assets for £1.5 million to ‘third party owners.'

The news was broken to members in an emergency meeting on 8 November 2016, which showed the club’s significant losses for the three years to June 2016 and outlined the need for a full "strategic review" of the club. The deal secured Jersey’s position in the 2016/2017 season and also enabled the club the option to buy back the assets within three to five years, but meant they had to rent them in the meantime.

Now a new 10-year loan of £1.5 million by a small group of benefactors has paid this previous loan off, putting the club back in control of the properties and giving them ‘extra time’ to sort out their money woes.  

Club Chairman, Mark Morgan said: "This is fantastic news for Jersey Reds, our members, players, sponsors and supporters, and for the Island.

"Being forced to sell our assets was a painful but necessary process, but that chapter is now behind us and we can look to the future as we continue recent work to make the club's finances sustainable.”

He added: "During the project to review our finances, cut expenditure and maximise income, we have been approached by a group of sympathetic individuals willing to provide this long-term loan at very favourable terms.”

The Reds are delighted to confirm that we once against own our ground + assets after securing a new loan - this news was shared with members at last night's meeting. Details: https://t.co/U6SZULevSo pic.twitter.com/wlg9uuOXT0

— Jersey Reds (@jerseyrfc) February 14, 2018

Although Jersey Red’s financial position is still very much in the red; they have a game plan with the sale of other land that the club still owns in St. Peter including Field 760.  

"The club remains in debt, and our work to stabilise our finances and raise funds to clear what we owe will continue, but we now have a longer period in which to do this and - most importantly - ownership of our assets. We are no longer tenants, which means we no longer have to pay rent” said Mr Morgan.