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Jersey Reds - Administration???
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billesleyexile View Drop Down
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Points: 1855 		Post Options Post Options   Thanks (0) Thanks(0)   Quote billesleyexile Quote  Post ReplyReply Direct Link To This Post Posted: 28 Sep 2023 at 12:18
Originally posted by Thunderbird Thunderbird wrote:

Is this a result in the massive cut in funding from the RFU or the uncertainty of the structure of the Championship going forward. Investors like certainty.

Probably the second - the uncertainty of the structure affecting investment. 

No club should be going under because of the RFU's cut in funding really (much as I disagree with it) - that just means writing cheques that you know you can't honour if something doesn't turn up. Clubs that get relegated from the Championship (and hence lose all the funding overnight) mostly don't implode, for example. Even the clubs that got relegated when it was £500k a year.

Gutted for Jersey and their supporters.
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Big Eddie View Drop Down
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Originally posted by Thunderbird Thunderbird wrote:

It pains me to say it BE but I fear you may be correct. I never though I would be reading this statement this morning. 
Is this a result in the massive cut in funding from the RFU or the uncertainty of the structure of the Championship going forward. Investors like certainty.

I have been an investor in businesses for the last 20 years. In order to invest among other things I need to understand:

- the macro view of the market the business is in
- the businesses position in that market and its realistic prospects
- whether the business will be or is likely to be financially self sufficient after my investment 
- the ability and experience of the management team and in particular its CEO
- the return I am likely to get on my investment and the exit strategy for me to realise my investment

I couldn't answer any of the above positively as far as rugby is concerned. As far as I am concerned Rugby is not suitable for investment 
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Big Eddie View Drop Down
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Points: 5091 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Big Eddie Quote  Post ReplyReply Direct Link To This Post Posted: 28 Sep 2023 at 12:40
Cornish Pirates appear still to have the game advertised on their website......and it is very possible that CP supporters may not know about Jersey's demise......the ripples will spread far and wide from all of this
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Greg View Drop Down
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I am so disappointed to learn of Jersey Reds plight and I feel for their players, coaches, admin staff and their supporters. There will also be a negative impact on the Island's economy which also has to be considered.
For this to happen so early in the season is particularly worrying for all of the Championship and I share the general contempt of the RFU for its utter incompetence in running the business it is there to protect and promote.
All this said, nobody has asked the question or raised the point of Jersey's own liability in putting together such a competitive squad (inc coaching staff) when the home gate is around 1000-1500 (please correct me if I am wrong on this estimate. How did they envisage that their wage bill would be covered?
This is a desperately sad day for English rugby.
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KnightsBoy View Drop Down
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Originally posted by Greg Greg wrote:

I am so disappointed to learn of Jersey Reds plight and I feel for their players, coaches, admin staff and their supporters. There will also be a negative impact on the Island's economy which also has to be considered.
For this to happen so early in the season is particularly worrying for all of the Championship and I share the general contempt of the RFU for its utter incompetence in running the business it is there to protect and promote.
All this said, nobody has asked the question or raised the point of Jersey's own liability in putting together such a competitive squad (inc coaching staff) when the home gate is around 1000-1500 (please correct me if I am wrong on this estimate. How did they envisage that their wage bill would be covered?
This is a desperately sad day for English rugby.
Good question Greg
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Geoff DC View Drop Down
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Points: 665 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Geoff DC Quote  Post ReplyReply Direct Link To This Post Posted: 28 Sep 2023 at 12:53
Originally posted by Big Eddie Big Eddie wrote:

Cornish Pirates appear still to have the game advertised on their website......and it is very possible that CP supporters may not know about Jersey's demise......the ripples will spread far and wide from all of this
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Teddy1981 View Drop Down
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Edited 

Edited by Teddy1981 - 28 Sep 2023 at 13:00
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My worry is that Jersey went into the season with a business plan that essentially says "A miracle happens here"

They needed extra investment to pay the first month's salary.
They obviously thought they had a backer willing to put in money - but unless the ink is dry and yo have seen the money - it is a gamble.

This is the second season in three that Cambridge will lose a home game due to a club collapsing in the weeks before the league season starts.

Pirates will not be able to cancel the staffing, suppers for tomorrow, so lose that and the gate money.

Hopefully, teams will be able to get their travel spend for Jersey back. If they can that might just compensate for the loss of a home game.

A lot of supporters will not.

What was the RFU doing?
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Se7en View Drop Down
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Points: 665 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Se7en Quote  Post ReplyReply Direct Link To This Post Posted: 28 Sep 2023 at 13:05
A very good point Greg. Every rugby fan at any level will feel for the players, coaches and staff at Jersey Reds, but as you say, why were they spending the funds they presumably were? Especially if, despite winning the Champ last season, they knew they would not be promoted into the Prem (where they 'may' have been able to attract and secure the necessary funding to keep going)?

Like I said, first and foremost all rugby fans will rue the loss of a team like Jersey Reds, but when the dust begins to settle, questions need to be asked, and other full time Champ clubs ought to be considering their own financial positions moving forward.
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Big Eddie View Drop Down
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Originally posted by Geoff DC Geoff DC wrote:

Originally posted by Big Eddie Big Eddie wrote:

Cornish Pirates appear still to have the game advertised on their website......and it is very possible that CP supporters may not know about Jersey's demise......the ripples will spread far and wide from all of this


Was still showing when I looked 30 minutes ago but glad that it has been clarified
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Brizzer View Drop Down
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Big Eddies point is the main one. Investors need certainty and as much security as they can get. Every business will have a 5 year plan…. Except the RFU. They can’t even manage 5 months.
I should imagine that when the Reds investors asked if the RFU deal had been agreed and the answer was ‘we will know more at the end of the year’ they had neither certainty or security and withdrew.
Jersey would have budgeted on this investment and would have had their own 5 year plan against it. That is how business works with investor rather than owners.
Some of these players have literally just signed, others were saved from Wasps and were so grateful to be here.
I just pray to all the gods that the situation is salvageable.

Edited by Brizzer - 28 Sep 2023 at 13:11
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Old Gold View Drop Down
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Originally posted by Scrumtime Scrumtime wrote:

What I cannot understand is why the RFU let it get to this, yet again.

The club is good enough for England to hold week long training camps at
The club is good enough for the RFU to put money ( it was £100's k) into to improve the facilities, so its good enough for England to hold training camps at.
If its good enough for that, why were they not allowed to take a position the Prem? having won the Champ last year. 
If they take that rightful position, they have 5k crowds in the winter with the likes of Bath, Northampton, Leicester etc. coming to the Island mid winter. It brings a massive tourist trade to the Island
The sponsors then stay, there is an end game, there is an income for many people on the Island that will throw money at the club by being a sponsor. They get a decent deal with Radidasson as the sole hotel to be used by travelling teams, they get the backing of the Island Government and tourism department, because of the footfall they bring through the arrivals lounge and the big part of the GDP the club will be to the Island. But by shutting off this route and not letting Jersey take their rightful (and Ill say that again because it is a fact) position in the Prem the RFU have as good as said "that's it for you, you're not one of our chosen clubs, we will cut off the blood supply and see how long it takes you to die"

This is a total different story to Wasps and Worcester.. this is a club that has been directly let down by the RFU.. 


Wrong very very wrong...

Nail hit very firmly on the head there. 

Sums up the RFU’s approach. Shameful behaviour. 
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Interesting to read the BBC article on this, says

"Reds split from Jersey RFC in 2022 and went on to win the league and reach the Championship Cup final in May.".

I did not know that.
Does this suggest an amateur Jersey are still playing somewhere?
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What a complete farce rugby in this country has become. How is Bill Sweeney still in a job on a top salary?. There has to be a total clear-out of the top brass and he should be the first one out of the door. 4 clubs have gone bust in 12 months. I really don’t want to say this but maybe professional rugby below the top tier, with the exception of a few clubs, is just not realistic in the current climate. There’s just not the money in the game, or the crowds, to sustain it. Having said that, you could say the same of the Premiership clubs, barring a few exceptions. 
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I am as unhappy with the RFU as many others involved in RU today but, why is it when a Club spends money it hasn't got or commits to expenses it can't meet, everyone immediately blames the RFU?
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Brizzer View Drop Down
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Originally posted by Stoatgobbler Stoatgobbler wrote:

Interesting to read the BBC article on this, says

"<span -reactid=".1f7tt9ee8f8.0.0.0.1.$paragraph-3.0">Reds split from Jersey RFC in 2022 and went on to win the league and reach the Championship Cup final in May.".</span>
<span -reactid=".1f7tt9ee8f8.0.0.0.1.$paragraph-3.0">
</span>
<span -reactid=".1f7tt9ee8f8.0.0.0.1.$paragraph-3.0">I did not know that.</span>
<span -reactid=".1f7tt9ee8f8.0.0.0.1.$paragraph-3.0">Does this suggest an amateur Jersey are still playing somewhere?
</span>

Yes. JRFC is alive and kicking
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Brizzer View Drop Down
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Originally posted by Sid James Sid James wrote:

I am as unhappy with the RFU as many others involved in RU today but, why is it when a Club spends money it hasn't got or commits to expenses it can't meet, everyone immediately blames the RFU?

Where did you get that from? According to our DOR our average salary was 25k. Not exactly paying over the odds.
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cheshire exile View Drop Down
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Originally posted by Sid James Sid James wrote:

I am as unhappy with the RFU as many others involved in RU today but, why is it when a Club spends money it hasn't got or commits to expenses it can't meet, everyone immediately blames the RFU?

It’s simple. As others have said, there is no plan for the Championship emanating from the RFU. Hence meaningful investment, other than pure philanthropy, is impossible to secure.


Edited by cheshire exile - 28 Sep 2023 at 13:28
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Sid James View Drop Down
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Originally posted by cheshire exile cheshire exile wrote:

Originally posted by Sid James Sid James wrote:

I am as unhappy with the RFU as many others involved in RU today but, why is it when a Club spends money it hasn't got or commits to expenses it can't meet, everyone immediately blames the RFU?

It’s simple. As others have said, there is no plan for the Championship emanating from the RFU. Hence meaningful investment, other than pure philanthropy, is impossible to secure.

I fully agree that the RFU has no credible plan for the Championship and are frankly, negligent but, that is not a licence for Championship Clubs to act irresponsibly with regard to their finances.
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Very sad news.


Quote
...

'We've not overspent'

Jersey are the fourth professional side to go bust in the past year as financial problems continue to dog the sport after the Covid-19 pandemic.

Worcester and Wasps both went into liquidation early into last season while London Irish went under in June - all three have not played a game since.

The islanders had started the season well - thrashing London Scottish in their opening cup game before a historic win at Bath, and then losing at home to Exeter on Saturday.

"Right now I'm just shocked," Jersey Reds director of rugby Harvey Biljon told BBC Channel Islands.

"We have categorically stayed in our lane, we've not overspent, we have worked within budget.

"We don't pay extortionate wages, the average [yearly] wage across our playing squad is £25,000, so I'm just absolutely shocked that we're champions of the Championship and we're in this situation."

Reds had seen funding from Jersey's government come to an end this year - between 2019 and 2022 the club received £575,000 from taxpayers.

The government had planned to stop their funding, with the 2023 government plan published last year making no mention of the club, with the 2024 plan - which came out last week - also not showing any financial support.

"The previous government provided extensive financial support to the club, and Jersey Reds also enjoyed significant support during Covid," said Lucy Stephenson, the Jersey minister with responsibility for port, in a statement.

"With the welfare of players, coaches and their families in mind, in the last three months this government has twice given Jersey Reds short-term grants totalling £370,000 to provide them with the opportunity to try to find alternative funding sources. Sadly, their efforts have not been successful.

"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.

"The Reds' announcement shows how prudent it was for them to separate the professional and amateur arms of rugby. Participation in amateur rugby remains strong, and the minis, juniors, and parts of JRFC will continue to thrive. Government will work to ensure that any impact on the amateur game is minimised."
...



Edited by Steve@Mose - 28 Sep 2023 at 14:01
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