Jersey's government has ruled out giving Jersey Reds anymore money after revealing the club has had £370,000 in the past three months to keep it afloat.
The Championship club has ceased trading after talks with investors fell through.
It had received £370,000 in two bailouts from the government in July and August, to tide it over to find other forms of income.
Those attempts have been unsuccessful, and the Reds announced on Thursday it was closing, leaving 70 players and staff without jobs.
“Government could not commit further money at a time when there so many other demands on the public purse – including responding to the cost-of-living crisis – and in fairness to other sports and businesses in the Island." - Sports Minister, Deputy Lucy Stephenson.
Like many I’m saddened by the announcement from @JerseyRedsRugby today, and my thoughts are with the players, coaches and other staff and their families who may be affected, as well as with their fans 1/2— Lucy Stephenson (@LucyStevoJSY) September 28, 2023
Following the closures, senior sports officials have warned about the wider economic impacts for the island of losing its professional title-winning rugby team, which has been credited with putting Jersey on the map.
Sports Minister Deputy Lucy Stephenson says that is not a concern:
"Yes it is not nice to lose something like Jersey Reds that can encourage local people as well as visitors to be active and have a nice time supporting a team, but from the evidence I have seen - while it is a loss, and we recognise that - I don't think we should be too concerned."
In 2022, bosses at the Reds decided to separate the professional and amateur parts of the company to help safeguard the grassroots side and allow more investors to fund the professional sport.
Deputy Stephenson says that the news has shown that the choice was the right one.
"We have a really strong amateur side in Jersey and we have hundreds of minis and juniors playing rugby every single week. There is a women's team, a men's team who are progressing really, really well.
There is a real strength there in the community. Rugby does have a strong future in Jersey. I think we can be very hopeful of that."
Without a last-minute rescue deal, the club has admitted liquidation is 'inevitable'.