Reds Collapse: States Reject Extra Public Funding

Politicians have rejected giving the financially stricken Jersey Reds more public money to save it from 'inevitable liquidation'.

Former Economic Development Minister, Deputy Lyndon Farnham brought the proposition for Treasury Minister Deputy Ian Gorst to take the 'necessary steps' to give the club funding to see it through the 2023/24 season.

His proposal -  which was amended by Deputies Lyndsay Feltham and Moz Scott to include additional safeguards for the public purse  - was rejected 30 votes in favour to 13 against.

The Chief Minister, Deputy Kristina Moore abstained, having declared an interest because she has a tenant who will be affected by the decision.

Before the debate began, the current ED Minister Deputy Kirsten Morel had made a statement saying the club had got itself in a financial 'black hole' and providing more taxpayers money would be writing an 'empty cheque'.

"Jersey clearly overstretched itself. As a business model, professional rugby in England is broken with income too low and salaries too high."

"We have no idea what debts and commitments the organisation has or doesn't have."

"I do not support this Assembly writing what will effectively be a blank cheque to what is, if we are being really honest, a failing and very badly run business."

"In 2013 there were more schools engaged in rugby than there are today, there were more clubs in the island than there are today. There can be an argument that professional rugby has harmed rugby in Jersey in terms of numbers taking part."

The government says it doesn't have the confidence in the Reds' board of directors to turn the club's finances around.

Many States Members voiced their opposition to the idea of more taxpayers' money being used to rescue the rugby club. However, there were some who felt it was the right thing to do.  

"When I look out my window, it brings me great joy seeing those orange planes landing in the island, because the fact is we now have those cheap flights to and from Jersey which for years people complained they didn't have. 

I suspect that quite a lot of those seats are booked by people coming to watch the Jersey Reds home games." - Constable Simon Crowcroft.

"We are all invested, we either throw that away or we tell the board at the Reds that they either sort this out now or you're gone forever."

"There are many benefits to this island, some of which are quantifiable in terms of the economic activity in the club itself and on the periphery too.

But also the unquantifiable impact it has on people's social lives, the people they meet and the friendships they strike up, or their health and fitness because of the inspiration they take from the team." -  Deputy Sam Mezec

The Jersey Reds have accused the government of making the decision to not bail them out for a third time eight days before it was communicated to the boards of directors.

Ministers have refuted that, saying they had requested meetings a number of times but bosses at the club in the days before it ceased trading.

Sports Minister Deputy Lucy Stephenson says bosses knew that long-term funding would not be happening since last November

"When I sat in a meeting with two of the directors of the club I made my positions clear. It was no surprise that the Council of Ministers would not be supporting their repeated requests for public funding."

But the Reds have again hit back in an online statement.

"We understand Lucy Stephenson stated yesterday that we have been rejecting offers to meet with her, this is untrue. The last meeting we had with her was in November 2022.

We have received no requests to meet with her since then. And in the two recent meetings with Ministers, she did not even bother to turn up even though others joined remotely.

It seems strange that a Sports Minister would show so little interest in interacting with what is the Island’s pre-eminent sports club, particularly where there so much government financial involvement."

In the hours before the debate, Jersey Reds players, staff and supporters gathered in the Royal Square.

A fantastic turnout for @JerseyRedsRugby this lunch time. Harvey Biljon and @lyndonfarnham talking to the fans. A lot of emotion to say the least, but also plenty of good points on why we need to support them - a big community wanting a lot of answers and support 🇯🇪 pic.twitter.com/u0egoh9IBR

— Daniel Andrade (@d_andradesport) October 3, 2023

Avid fan Dom Boletta, who organised the gathering at outside the States Chamber and one at the Stade Santander on Friday (29 Sept), has also made a petition for the government to 'save Jersey Reds'.

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