Jersey Reds - Administration???
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Topic: Jersey Reds - Administration???
Posted By: islander
Subject: Jersey Reds - Administration???
Date Posted: 28 Sep 2023 at 09:25
Some fairly major news out this AM - https://tinyurl.com/yevzzyja" rel="nofollow - LINK
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Replies:
Posted By: backrowb
Date Posted: 28 Sep 2023 at 09:26
This would be another disaster
https://www.dailymail.co.uk/sport/rugbyunion/article-12570075/Last-seasons-Championship-winners-Jersey-Reds-set-enter-administration-English-rugbys-financial-crisis-continues-three-Premiership-clubs-folded-season.html" rel="nofollow - https://www.dailymail.co.uk/sport/rugbyunion/article-12570075/Last-seasons-Championship-winners-Jersey-Reds-set-enter-administration-English-rugbys-financial-crisis-continues-three-Premiership-clubs-folded-season.html
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Posted By: Paul10
Date Posted: 28 Sep 2023 at 09:35
That's a shame.
Gutted for everyone involved.
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Posted By: tulip
Date Posted: 28 Sep 2023 at 09:39
Gosh that’s bad news. I hope with the wonderful facilities you have that some rugby will be sustainable Good Luck
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Posted By: Camquin
Date Posted: 28 Sep 2023 at 09:43
I hope they manage to keep playing.
There would be a knock on effect well beyond the club if it folds. I like most other fans, have already booked our flights and hotels - and while we may be a drop in the ocean of Jersey's tourism, it all adds up.
------------- Sweeney Delenda Est
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Posted By: Camquin
Date Posted: 28 Sep 2023 at 09:45
From the Reds web site
Jersey Reds regret to confirm that the club ceased trading at 5.30pm
on Wednesday September 27th and is exploring the way forward. However,
liquidation appears inevitable unless a solution can be found in the
very short term.
The professional side made the move amid a continuing backdrop of
uncertainty about the future of English rugby’s second tier, having
competed in the RFU Championship for the past 11 years and won the
league last season.
The decision came with an admission that the club would be unable to
pay September salaries due this week, and would not be travelling to
south-west England to fulfil the scheduled Friday night cup fixture
against Cornish Pirates.
Reds Chairman Mark Morgan said he was devastated that the move had to
be made, but that it had become clear on Wednesday that there was no
alternative.
“We had been able to start the season and maintain sufficient funds
to cover the summer, but regret that our conversations with potential
new investors as well as existing ones have been unsuccessful,” he said.
“At one stage at the end of last season it appeared there was a viable
way forward for the second tier once the new Professional Game Agreement
was implemented from summer 2024, but Championship clubs have been left
in the dark since that point and this led 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.”
Tier two clubs have faced mounting financial challenges since the RFU
first advised of major funding cuts in early 2020, prior to the onset
of Covid-19. The pandemic then brought further cuts, with the
challenging landscape for Championship clubs now having lasted for
almost four years.
Mr Morgan said this week’s developments vindicated the 2022 move,
supported by club members at an Extraordinary General Meeting, to
separate the professional arm of the club from the amateur Jersey Rugby
Football Club in order to safeguard the future of amateur rugby in
Jersey.
The financial difficulties resulted in an even more difficult
situation than the position encountered in November 2016, when
cumulative losses made it necessary to raise £1.5million through a
sale-and-leaseback agreement covering the club’s assets.
Other details covering the implications of this news have yet to be
finalised, but are expected to emerge in the coming days and weeks.
------------- Sweeney Delenda Est
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Posted By: OldNick
Date Posted: 28 Sep 2023 at 09:55
I seem to remember they had a hiccup only a few years ago which seemed to have been resolved very quickly, possibly a pre-arranged restructuring of some sort. Can anyone else remember details of that?
Here's hoping that this is also a short term issue and that they manage to recover from it. The wording on the club statement does not sound optimistic though. My thoughts are with their people, whichever part of the club.
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Posted By: *Stalwart
Date Posted: 28 Sep 2023 at 10:09
Terrible shame, but it begs the question of why they were signing players (like Robin Wedlake from Pirates) when they knew the financial situation was uncertain. Again, it's the players and staff who will take the major hit, possibly losing their livelihoods and all the stress that goes with that. A big blow for clubs due to have home games against them - no doubt CP will take a big hit with our game tomorrow night being cancelled at such short notice.
------------- *Stalwart
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Posted By: Brizzer
Date Posted: 28 Sep 2023 at 10:11
Paul10 wrote:
That's a shame.
Gutted for everyone involved. | Gutted doesn’t come close. I just hope that it is just us and other Championship clubs are not in the same boat.
------------- Tackle Low!!!!!
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Posted By: Bluesman11
Date Posted: 28 Sep 2023 at 10:20
This is a real shock, did not see this one coming. But also begs the question as to why for the last couple of years they have been assembling one of the best and likely more expensive teams in the Championship!? They have decent support, facilities and sponsorship and should’ve been capable of being a reasonably self sufficient mid-table championship side. Just beggars belief
------------- Championship Prediction League Winner 11/12
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Posted By: Brizzer
Date Posted: 28 Sep 2023 at 10:21
The good news is that the amateur club is not affected along with the assets I believe. All sorts of emotions at the moment, but sadness the biggest one
------------- Tackle Low!!!!!
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Posted By: Big Eddie
Date Posted: 28 Sep 2023 at 10:40
Stunned!
I have booked 5 days with my wife in Jersey for the Caldy fixture. We will still be going because we loved our time on the island earlier this year but I will miss the huge conviviality of our time with Islander and Brizzer and all at Jersey RFC.
From what I have read liquidation appears to be inevitable and there is a good reason for this. Rugby is not a sensible business/financial investment, it is only emotion, community and the generosity of benefactors that keeps it afloat.
Sadly I am sure there will be more casualties appearing during the course of this season.
I am so sorry for everyone involved and affected at Jersey......despite getting hammered we loved our two matches against them last season.
------------- ''The future isn't what it used to be''
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Posted By: castleparknight
Date Posted: 28 Sep 2023 at 10:41
Gutted for the Professional Club, its players and supporters.
I hope some resolution can be found.
------------- Onward and Upwards C'mon Donny!
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Posted By: Old Gold
Date Posted: 28 Sep 2023 at 10:53
Dreadfully sad news. Always an enjoyable away fixture no matter the result.
------------- One Club
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Posted By: maire23
Date Posted: 28 Sep 2023 at 11:10
Notts have been there, done that and bought the t-shirt on more than one occasion- in fact once coming within minutes of the same fate so certainly the players, staff and supporters have my every empathy. I went last season as it was a bucket list thing for me and I’m very glad I did. I had a lovely time and even though we usually inevitably got destroyed by Jersey I will be sorry to see them go.
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Posted By: Scrumtime
Date Posted: 28 Sep 2023 at 11:35
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...
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Posted By: billesleyexile
Date Posted: 28 Sep 2023 at 11:43
FFS
------------- keep the faith
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Posted By: Deva Delinquent
Date Posted: 28 Sep 2023 at 11:51
Shocking news, not something I thought I'd be reading today.
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Posted By: Big Eddie
Date Posted: 28 Sep 2023 at 11:54
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...
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Rugby is in crisis but there is little leadership from the RFU.........the Championship clubs have no idea where they are headed......there maybe further casualties
------------- ''The future isn't what it used to be''
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Posted By: Thunderbird
Date Posted: 28 Sep 2023 at 12:07
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.
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Posted By: billesleyexile
Date Posted: 28 Sep 2023 at 12:18
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.
------------- keep the faith
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Posted By: Big Eddie
Date Posted: 28 Sep 2023 at 12:21
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
------------- ''The future isn't what it used to be''
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Posted By: Big Eddie
Date 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
------------- ''The future isn't what it used to be''
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Posted By: Greg
Date Posted: 28 Sep 2023 at 12:43
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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Posted By: KnightsBoy
Date Posted: 28 Sep 2023 at 12:45
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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Posted By: Geoff DC
Date Posted: 28 Sep 2023 at 12:53
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 |
Are you sure Eddie ??
http://cornish-pirates.com/rugby/jersey-reds-cup-fixture-cancelled/" rel="nofollow - https://cornish-pirates.com/rugby/jersey-reds-cup-fixture-cancelled/
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Posted By: Teddy1981
Date Posted: 28 Sep 2023 at 12:58
Posted By: Camquin
Date Posted: 28 Sep 2023 at 12:59
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?
------------- Sweeney Delenda Est
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Posted By: Se7en
Date 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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Posted By: Big Eddie
Date Posted: 28 Sep 2023 at 13:08
Geoff DC wrote:
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 |
Are you sure Eddie ??
http://cornish-pirates.com/rugby/jersey-reds-cup-fixture-cancelled/" rel="nofollow - https://cornish-pirates.com/rugby/jersey-reds-cup-fixture-cancelled/ |
Was still showing when I looked 30 minutes ago but glad that it has been clarified
------------- ''The future isn't what it used to be''
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Posted By: Brizzer
Date Posted: 28 Sep 2023 at 13:10
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.
------------- Tackle Low!!!!!
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Posted By: Old Gold
Date Posted: 28 Sep 2023 at 13:14
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.
------------- One Club
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Posted By: Stoatgobbler
Date Posted: 28 Sep 2023 at 13:16
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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Posted By: Donnyknightfan
Date Posted: 28 Sep 2023 at 13:19
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.
------------- Donny Knights - best team in Yorkshire
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Posted By: Sid James
Date Posted: 28 Sep 2023 at 13:21
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?
------------- All Knwoing All Seeing
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Posted By: Brizzer
Date Posted: 28 Sep 2023 at 13:24
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
------------- Tackle Low!!!!!
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Posted By: Brizzer
Date Posted: 28 Sep 2023 at 13:26
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.
------------- Tackle Low!!!!!
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Posted By: cheshire exile
Date Posted: 28 Sep 2023 at 13:27
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?
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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.
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Posted By: Sid James
Date Posted: 28 Sep 2023 at 13:34
cheshire exile wrote:
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?
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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.
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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.
------------- All Knwoing All Seeing
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Posted By: Steve@Mose
Date Posted: 28 Sep 2023 at 13:38
Very sad news.
http://www.bbc.co.uk/sport/rugby-union/66946536" rel="nofollow - Link
...
'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." ...
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Posted By: Big Eddie
Date Posted: 28 Sep 2023 at 13:42
Camquin wrote:
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? |
Camqui's point and the points made by others are valid.
However for those running the company behind Jersey Reds it is a very tough business/financial call. It maybe that the existing investors and possibly potential new investors were holding out the promise of further funding depending on the outcome of talks with the RFU, the financial windfall of the game against Exeter Chiefs etc.
For a sports business the decision and timing of when to pull the plug is almost certainly binary. In other businesses that market to other businesses you may be able to reduce costs in stages with redundancies and other cost cutting measures and still retain operational effectiveness and potentially your client base.
When your customers are the public and your major costs are a squad of players and coaches it would be very difficult to incrementally scale back......This will all be a hindsight test for the liquidator but I suspect that Jersey's board of directors would have considered the position prior to the start of the season and probably had a financial plan which although perhaps dependent on further investment was considered to be reasonable with a likely prospect of the further investment (probably based on talks with existing investors).
If you pull the plug too early you could be viewed as destroying a viable business and impacting creditors/staff and shareholders..........pull the plug too late and you will be accused of not acting soon enough. It is a horrible dilemma and most boards will be advised by experienced professionals to assist in making such a decision.
I have been in the above position a number of times and thankfully was always on the right side of the decision but some were spectacularly close calls with either trade sales or further investment (which had being worked on for many months) being finally secured at a few minutes to midnight.
It is a very difficult position to be in and requires very close monitoring of all the facts on a daily basis to determine when the realistic prospect of being able to continue to trade has evaporated. Some times this can be quite a few months ahead of actually running out of cash but often because of the realistic prospect of a trade sale or further investment, (which has likely been worked on for months) it runs right up to the wire and sometimes it only falls over at the final hurdle when the buyer or investor gets cold feet.
I have also been in situations where directors with no equity interest in the business have turned turtle at the first whiff of financial difficulty and have pushed for Administration at way too early a juncture before the options to salvage the business have been properly explored.
In both these cases the businesses were saved through a combination of a solvent transaction and an improvement in trading through the extremely hard work and tireless efforts of the other directors and the staff and employees.
It is always very difficult for all involved and I would never judge any business in this situation until I knew all the facts which are usually uncovered by the Administrator/Liquidator and set out in their reports.
------------- ''The future isn't what it used to be''
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Posted By: Steve@Mose
Date Posted: 28 Sep 2023 at 13:59
http://www.championshiprugby.co.uk/news/article/rfu-statement-on-jersey-reds-2023" rel="nofollow - RFU Statement:
The RFU has been informed that Jersey Reds has taken the decision to cease trading following unsuccessful discussions with both existing and potential new investors. We, like their players, staff and supporters are deeply concerned by this news. The RFU is working with the Rugby Players Association to support the players. It is extremely disappointing that investors would take decisions at this early point in the season to place the club in such a position. Championship clubs had clear confirmation from the RFU on funding for the 2023/24 season and we have been working with the Championship and Premiership Rugby on the new Professional Game Partnership and shape of Premiership 2 with funding levels to be confirmed at the end of this calendar year. The Championship has been fully involved in these discussions since February which are aimed at stabilising and strengthening the professional game. This news will clearly impact the season for the Championship league and Premiership Rugby Cup competition, which was introduced this season as a way to offer a new format to supporters, bringing with it the experience of playing Premiership sides and the opportunity to welcome new fans into Championship clubs and assist them to grow new audiences. Further information on the impact of this to the Premiership Rugby Cup and Championship League season will follow. |
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Posted By: corporalcarrot
Date Posted: 28 Sep 2023 at 13:59
Stoatgobbler wrote:
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?
| Yes Amateur & Ladies thriving thankfully https://jerseyrfc.rfu.club/" rel="nofollow - Jersey RFC (rfu.club)
------------- Dont kick it. Pick it up and GO FORWARD.
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Posted By: Sid James
Date Posted: 28 Sep 2023 at 14:02
Brizzer wrote:
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. |
I didn't mention players salaries being the issue alone but I can imagine that trying to maintain a certain level of success on the field by offering incentives you cannot meet is 'paying over the odds'. I read thst between 2019 & 2022, Reds received funding of £575,000pa from Jersey's government/the taxpayer (nice if you can get it!). This has now ceased and I expect this must be a contributing factor to their problems.
------------- All Knwoing All Seeing
|
Posted By: Big Eddie
Date Posted: 28 Sep 2023 at 14:21
One thing is sure in all of this:
- after 3 Premiership clubs have folded and now one Championship club and - the RFU is forecast by some commentators to make £ gazillions of losses over the next few years
the prospects of fresh investment into rugby is rapidly diminishing from a position where it was unlikely to now a position where its is probably vanishingly small. There is no clear blueprint that says this is how you make a financial return from an investment in club rugby........but there are now an increasing number of case studies that say this is how you can lose all your money by investing in club rugby.
This could result in other financially struggling professional rugby clubs (which could be most of them) pulling the plug earlier than they may otherwise have done so as one of the defences against directors being accused of 'wrongfully trading' (and thus opening up the directors to personal liability) of having a realistic prospect of fresh investment will be more difficult to credibly advance.
The financial climate doesn't look good for professional rugby in England
------------- ''The future isn't what it used to be''
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Posted By: Moseley Mauler
Date Posted: 28 Sep 2023 at 14:38
Big Eddie wrote:
The financial climate doesn't look good for professional rugby in England
|
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Posted By: Moseley Mauler
Date Posted: 28 Sep 2023 at 14:39
Moseley Mauler wrote:
Big Eddie wrote:
The financial climate doesn't look good for professional rugby in England
|
|
Oops pressed something too soon. It hasn't from the very start Eddie
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Posted By: Big Eddie
Date Posted: 28 Sep 2023 at 14:41
Steve@Mose wrote:
http://www.championshiprugby.co.uk/news/article/rfu-statement-on-jersey-reds-2023" rel="nofollow - RFU Statement:
The RFU has been informed that Jersey Reds has taken the decision to cease trading following unsuccessful discussions with both existing and potential new investors. We, like their players, staff and supporters are deeply concerned by this news. The RFU is working with the Rugby Players Association to support the players. It is extremely disappointing that investors would take decisions at this early point in the season to place the club in such a position. Championship clubs had clear confirmation from the RFU on funding for the 2023/24 season and we have been working with the Championship and Premiership Rugby on the new Professional Game Partnership and shape of Premiership 2 with funding levels to be confirmed at the end of this calendar year. The Championship has been fully involved in these discussions since February which are aimed at stabilising and strengthening the professional game. |
|
The RFU seem to be signalling that Jersey's insolvency is down to their existing investors..........does the RFU know the full circumstances before they have leapt to this judgement?
------------- ''The future isn't what it used to be''
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Posted By: Moseley Mauler
Date Posted: 28 Sep 2023 at 14:43
Biljon says that the club hasn't overspent. Well, clearly they have because they relied on only potential investment
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Posted By: corporalcarrot
Date Posted: 28 Sep 2023 at 15:19
Big Eddie wrote:
Steve@Mose wrote:
http://www.championshiprugby.co.uk/news/article/rfu-statement-on-jersey-reds-2023" rel="nofollow - RFU Statement:
The RFU has been informed that Jersey Reds has taken the decision to cease trading following unsuccessful discussions with both existing and potential new investors. We, like their players, staff and supporters are deeply concerned by this news. The RFU is working with the Rugby Players Association to support the players. It is extremely disappointing that investors would take decisions at this early point in the season to place the club in such a position. Championship clubs had clear confirmation from the RFU on funding for the 2023/24 season and we have been working with the Championship and Premiership Rugby on the new Professional Game Partnership and shape of Premiership 2 with funding levels to be confirmed at the end of this calendar year. The Championship has been fully involved in these discussions since February which are aimed at stabilising and strengthening the professional game. |
|
The RFU seem to be signalling that Jersey's insolvency is down to their existing investors..........does the RFU know the full circumstances before they have leapt to this judgement? | I think its called managing the narrative mate. The RFU will look to deflect the blame but why on earth would potential investors inject funds with such a lack of clarity. Players & other staff are typically paid on the last business day each month and without the necessary going concern support from investors another cracking rugby club falls.
------------- Dont kick it. Pick it up and GO FORWARD.
|
Posted By: Big Eddie
Date Posted: 28 Sep 2023 at 15:51
I am sure you are right CC.......however managing the narrative in this way is not only counter productive it almost certainly does a disservice to the investors as it somehow suggests that the existing investors 'pulled their funds out'.
I very much doubt that was the case it being very much more likely that the existing investors declined to put more money in....and why should they if they do not believe there is any clarity on how they could possibly get a return or get their money back.
The RFU have just added another reason for not investing in rugby.......the opprobrium from the governing body if the club fails.......I found that shocking and distasteful and unlikely to encourage other investors.
I have often taken the RFU to task for ineptitude and their almost total focus on the elite game. However, although I believe they have mismanaged the rugby landscape they can only be peripherally at fault in Jersey's woe's so I wouldn't lay the fault for Jersey's insolvency directly at the RFU's door.
There are a number of very high net worth investors in Premiership clubs that must wish they had never invested in rugby and would love to walk away rather than continuously pump funds into a market place and business model that shows absolutely no signs of ever generating a return.
I would reckon that some of these VHNWIs would probably love to cut their losses and walk away from their dire investments with perhaps no money but perhaps some dignity intact. Today's pronouncement by the RFU castigating Jersey's investors may just have given these Premiership VHNWIs the excuse they need to walk away and halt their continual multi million £ leakage!
------------- ''The future isn't what it used to be''
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Posted By: tulip
Date Posted: 28 Sep 2023 at 16:23
RFU accounts up to June 22. look fairly healthy £95 million profit to reserves. Sweeney and his head man and woman £1.5 million in salary What on earth do they do to earn that. England international teams cost £21 million. Most people would pull on an England jersey for pride alone Same old story the rich get richer and the poor get poorer
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Posted By: gerg_861
Date Posted: 28 Sep 2023 at 16:33
Terrible news. I only made it to Jersey for one match, but the hospitality and welcome were excellent. The title race last year was thrilling, and Rugby as a whole will suffer from the Championship Champs becoming insolvent.
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Posted By: L33
Date Posted: 28 Sep 2023 at 16:52
Rugby has changed, clubs cannot operate the way the did 10 years ago.
Look at the clubs who are thriving and doing well. Clubs with M&J players, Women's teams, 2XV/3XV teams. 1 team clubs are struggling. Clubs need income every month just not during the rugby season. Private functions etc keep clubs going.
You can not be reliant on the RFU and blaming them for Jersey/other clubs going bust. Clubs need to be self sufficient especially below Premiership.
I feel for the players who have been put in this situation especially as the season has started and clubs may have budgets etc sorted.
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Posted By: OldNick
Date Posted: 28 Sep 2023 at 17:04
Statement issued by Coventry Rugby Club... https://www.coventryrugby.co.uk/club-statement-5/" rel="nofollow - https://www.coventryrugby.co.uk/club-statement-5/
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Posted By: Steve@Mose
Date Posted: 28 Sep 2023 at 17:09
http://www.bbc.co.uk/sport/rugby-union/66949020" rel="nofollow - Jersey Reds players could be 'stranded' after Championship club ceases trading
Jersey Reds players risk being "stranded" on the island after the Championship club ceased trading.
Players were told early on Thursday morning that the club was closing down after an investor pulled out, leaving Reds unable to meet the payroll due on Friday.
Up to 70 players, coaches and support staff have been affected.
"The timing of it is terrible," director of rugby Harvey Biljon told BBC Channel Islands.
"It's the end of the month, so they won't get paid in the next couple of days, and I can assure you some of these guys won't even have the funds to book a flight to get on to the mainland or get home.
"Those are some of the guys who are from Australia or South Africa, they'll be stranded."
Jersey's squad, who won the Championship title last season, had been due to board a flight at 08:00 BST on Thursday morning to take them to their Premiership Rugby Cup game at Cornish Pirates on Saturday.
Instead, the players were called to the club's ground at St Peter at 07:30 and given the news they were out of jobs.
"It's destroying for everyone and their families as well," centre Dan Barnes told BBC Channel Islands.
"It doesn't just affect us as players, it affects the whole network, families.
"They've got kids, rent to pay, bills to pay, and one day before getting paid to be told that an investor has pulled out doesn't make sense to us.
"At seven o'clock this morning I was a rugby player for Jersey Reds with a job; at 10 o'clock, now I'm not." |
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Posted By: WEvans
Date Posted: 28 Sep 2023 at 17:10
L33 wrote:
Rugby has changed, clubs cannot operate the way the did 10 years ago.
Look at the clubs who are thriving and doing well. Clubs with M&J players, Women's teams, 2XV/3XV teams. 1 team clubs are struggling. Clubs need income every month just not during the rugby season. Private functions etc keep clubs going.
You can not be reliant on the RFU and blaming them for Jersey/other clubs going bust. Clubs need to be self sufficient especially below Premiership.
I feel for the players who have been put in this situation especially as the season has started and clubs may have budgets etc sorted. |
I agree with a lot of what you say. Those clubs you describe as thriving are of course those at National League level and below. The professional game in this country is a basket case and has been for years.
The "thriving" clubs are of course thriving despite and not because of the RFU who have all but abandoned them by cutting funding and leaving them in a state of perpetual uncertainty about the league structure they play in.
Mr Sweeney and his mates have proved themselves totally unfit for purpose for years now and it's pointless expecting them to be of any help whatsoever to the professional game.
The solution? I honestly don't think there is one for professional rugby in this country. As hard as it will be for the clubs and their supporters the best hope in my opinion is for the whole professional structure to implode and then for us to start again building a properly sustainable structure but that would require an enormous dose of realism and there seems very little sign of that at the moment.
We have waved goodbye to Wasps, Worcester and London Irish and now saying farewell to Jersey. Who next? Bristol, Exeter, Quins, Leicester? Take your pick they and many others are just one withdrawing sugar daddy/investor from oblivion.
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Posted By: Scrumtime
Date Posted: 28 Sep 2023 at 17:14
The point I was making was Jersey should not be in this position They won the Champ last year They should be at the top table They should be receiving the funding that the other Prem sides get whilst plying their rugby in the Prem
It’s sport, you win the league you gain promotion and the rewards that come with it
Not …sorry your not on our list…you cannot come in
The RFU might as well make a list of who are and are not acceptable
I would hate to think what they would do with Exeter under todays so call rules
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Posted By: Big Eddie
Date Posted: 28 Sep 2023 at 17:20
L33 wrote:
Rugby has changed, clubs cannot operate the way the did 10 years ago.
Look at the clubs who are thriving and doing well. Clubs with M&J players, Women's teams, 2XV/3XV teams. 1 team clubs are struggling. Clubs need income every month just not during the rugby season. Private functions etc keep clubs going.
You can not be reliant on the RFU and blaming them for Jersey/other clubs going bust. Clubs need to be self sufficient especially below Premiership.
I feel for the players who have been put in this situation especially as the season has started and clubs may have budgets etc sorted. |
A lot of truths there L33.
However there is some indirect culpability at the RFU's door because they are complicit with the PRL regarding what is essentially a cartel which has not allowed the winners of the Championship to obtain access to the Premiership and the funding that is provided by the RFU.
Your points are also valid in respect of the Premiership which all would probably be bust if the RFU withdrew the funding that they subsidise the Premiership clubs with.
The anger and hostility generally directed at the senior management of the RFU stems mostly from the inequitable distribution of RFU funding. To be honest I don't know what the solution is but I do know that Professional rugby in England is in big big trouble!
------------- ''The future isn't what it used to be''
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Posted By: Runitback
Date Posted: 28 Sep 2023 at 18:00
Put simply:
The Directors are culpable having previously had to sell all their assets to pay off debts of £1.5m
So their business model was obviously not sustainable.
The RFU are culpable as their governance is poor to non existent and they have failed to provide a workable league structure . .. which is still in flux and Championship clubs have no idea what next season looks like.
I feel desperately sorry for all staff and supporters and all suppliers . . I expect other clubs to follow.
However, this also paves the way for the RFU to bring back Wasps into the Championship!!!
All a farce and the sooner Sweeney and OShea leave the better . . the RFU needs a radical shake up!
------------- Run with it
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Posted By: Pirate Pig
Date Posted: 28 Sep 2023 at 18:11
A very interesting statement has been made by the Jersey government confirming their level of financial support for the club which has been withdrawn for this season. The figures involved are mind boggling. Whilst I accept that the rugby club brought a certain amount of revenue to the island I'm astonished that tax payers money would be used to support a private business. "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 sport, 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."
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Posted By: Se7en
Date Posted: 28 Sep 2023 at 18:27
That is very interesting reading indeed, and certainly not something I was aware of. It makes you wonder how much sooner they would have gone under but for the best part of a half million pound grant from the Jersey Government in the last few months. Incredible really.
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Posted By: corporalcarrot
Date Posted: 28 Sep 2023 at 18:51
OldNick wrote:
Statement issued by Coventry Rugby Club... https://www.coventryrugby.co.uk/club-statement-5/" rel="nofollow - https://www.coventryrugby.co.uk/club-statement-5/
| A quality response from another brilliant championship club.
------------- Dont kick it. Pick it up and GO FORWARD.
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Posted By: HookerPaul
Date Posted: 28 Sep 2023 at 19:05
Absolutely gutted for all involved with Jersey Reds. Very sad day for rugby in England.
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Posted By: spy28482
Date Posted: 28 Sep 2023 at 19:09
Gutted to say the least although Administration is not necessarily the end of the Reds.
I hope that something can be negotiated with the creditors to return the Reds to something that looks like normal operations, even if this means going down a division.
Looking from the outside in I do feel for the Stewards of the Reds when you’re biggest stakeholder (RFU) seems to have little interest in the Championship. You cant attract investors and as we know, no one invests in rugby as there’s no money in it, so you ultimately become a benefactor, who may have pulled the rug out from under the Reds, only time will tell. If I recall the only Union that made any money during COVID was the IRFU:
https://www.irishrugby.ie/2022/11/11/irfu-announces-operating-surplus-of-e5-9-million-for-year-ended-31st-july-2022/amp/" rel="nofollow - https://www.irishrugby.ie/2022/11/11/irfu-announces-operating-surplus-of-e5-9-million-for-year-ended-31st-july-2022/amp/
A solution that could potentially solve English rugby’s issues but I dont think so, not while the Premiership is tied to private equity and the return’s demanded by current interest rates.
As a Jersey Reds fan, far away from home I wish the players and staff all the best during this difficult time.
What are you gona do with your weekends now Carrot? ![Cry Cry](smileys/smiley19.gif)
corporalcarrot wrote:
Big Eddie wrote:
Steve@Mose wrote:
http://www.championshiprugby.co.uk/news/article/rfu-statement-on-jersey-reds-2023" rel="nofollow - RFU Statement:
The RFU has been informed that Jersey Reds has taken the decision to cease trading following unsuccessful discussions with both existing and potential new investors. We, like their players, staff and supporters are deeply concerned by this news. The RFU is working with the Rugby Players Association to support the players. It is extremely disappointing that investors would take decisions at this early point in the season to place the club in such a position. Championship clubs had clear confirmation from the RFU on funding for the 2023/24 season and we have been working with the Championship and Premiership Rugby on the new Professional Game Partnership and shape of Premiership 2 with funding levels to be confirmed at the end of this calendar year. The Championship has been fully involved in these discussions since February which are aimed at stabilising and strengthening the professional game. |
|
The RFU seem to be signalling that Jersey's insolvency is down to their existing investors..........does the RFU know the full circumstances before they have leapt to this judgement? | I think its called managing the narrative mate. The RFU will look to deflect the blame but why on earth would potential investors inject funds with such a lack of clarity. Players & other staff are typically paid on the last business day each month and without the necessary going concern support from investors another cracking rugby club falls. |
------------- Jeeeeerseeeeeeey!!!
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Posted By: tulip
Date Posted: 28 Sep 2023 at 19:42
That is amazing funding from Jersey government. If Cornish Pirates and Doncaster had received that from their councils maybe there would have been a different Championship winner
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Posted By: Paul10
Date Posted: 28 Sep 2023 at 19:47
IRFU had a grant during covid not a loan.
From the report... Without the receipt of this grant, the Union would have reported an operating deficit of over €9m for the year.
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Posted By: Paul10
Date Posted: 28 Sep 2023 at 19:49
tulip wrote:
That is amazing funding from Jersey government. If Cornish Pirates and Doncaster had received that from their councils maybe there would have been a different Championship winner |
This is how French rugby operates isn't it?
I mean lots of state support.
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Posted By: cheshire exile
Date Posted: 28 Sep 2023 at 22:12
Paul10 wrote:
tulip wrote:
That is amazing funding from Jersey government. If Cornish Pirates and Doncaster had received that from their councils maybe there would have been a different Championship winner |
This is how French rugby operates isn't it?
I mean lots of state support.
|
Exactly, particularly in terms of the funding of stadia and associated infrastructure. And why not???
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Posted By: Dad
Date Posted: 28 Sep 2023 at 23:02
Saw JRFC at Reading a couple of weeks ago. Lv6 I think (maybe 7)
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Posted By: The Blues
Date Posted: 28 Sep 2023 at 23:33
Sad news! Didn’t believe it at first and despite what has been reported it is simply spending what you don’t have. Not helped by the covid year where clubs were forced to take loans where the Premiership got grants and now having to pay these back. However every Jersey fan would have been happy with 6th instead of champions and to be there the next year!
Hope the players can find new clubs, I know Blues in the past have taken on a couple after a club has gone. Ealing should take on Bijon as their DoR or head coach, best thing they could do!
You would have thought Jersey could have gone to the islanders to get some cash and although harsh lay off some of the recently signed players and reduce salaries to at least keep going for the season.
It was mentioned on this site when they sold the ground that it was likely to be a mistake.
At this rate we won’t have enough for 2 leagues of 10!
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Posted By: The Blues
Date Posted: 28 Sep 2023 at 23:49
To add the weird thing is clubs don’t fail at the start of the season as the sponsorship and season ticket sales are banked before being dwindled over the season.
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Posted By: spy28482
Date Posted: 29 Sep 2023 at 05:13
Completely agree Paul 10. That 2021/2022 EUR50mil would have only been a EUR40mil surplus.
Apologies the detail is the link at the bottom of the article and it is a lot to digest. (A non chartered accountant journalist I suppose!:
https://www.irishrugby.ie/2022/11/11/irfu-announces-operating-surplus-of-e5-9-million-for-year-ended-31st-july-2022/
https://d19fc3vd0ojo3m.cloudfront.net/irfu/wp-content/uploads/2022/11/15113840/IRFU-2577-Annual-Report-2021-22-Accounts-Section_v3.pdf
The IRFU / Grant continued to support the system and their union didn't offer the same one of loans to clubs. This is the RFU not recognising the "ecosystem" of Rugby that feeds the higher divisions / internationals etc...
If I recall my Championship history correctly, Scottish refused a loan because it was rightly a loan and would need to be paid back and not a grant which doesn't? (Please correct me if i'm wrong here guys)
Anyway this is my 2 cents backed up with info.
So much useful info that you don't get in the press and i'm sure more will come through soon from those on the ground and that have worked so hard to make the club what it has become.
Come on Jersey Reds. Turn it over! ![Hug Hug](smileys/smiley31.gif)
------------- Jeeeeerseeeeeeey!!!
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Posted By: tulip
Date Posted: 29 Sep 2023 at 06:41
Paul10 wrote:
IRFU had a grant during covid not a loan.
From the report... Without the receipt of this grant, the Union would have reported an operating deficit of over €9m for the year. |
As I said earlier the RFU accounts show a transfer of £95 million to Reserves at June 2022. .Can’t see the English government saying we need to bung them a grant
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Posted By: No 7
Date Posted: 29 Sep 2023 at 08:39
It is a really sad for Rugby and the genuine Jersey supporters. There is obviously a huge difference between sponsors and these 'investors' . In Rugby sponsors get very little back and in most cases do not expect anything back. Investors are looking for a return . The previous sale of the ground and lease back arrangement sounds to me that an 'investor' was looking for a return and may have something to do with the present situation. I do not believe we get to hear the truth in the press and certainly not on here.
------------- Ambition should be made of sterner stuff.
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Posted By: Delamas
Date Posted: 29 Sep 2023 at 09:31
Thank you, No 7. IMHO the best post yet.
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Posted By: Halliford
Date Posted: 29 Sep 2023 at 09:40
Delamas wrote:
Thank you, No 7. IMHO the best post yet.
|
Agree, my club’s Sponsorship Manager constantly makes the point that sponsorships are effectively donations. Investment for a commercial return cannot succeed in rugby.
This is a tragedy for the players, a massive disappointment for the supporters and a real worry for the future of professional sport, not just rugby, in England.
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Posted By: Paul10
Date Posted: 29 Sep 2023 at 10:11
Posted By: Thunderbird
Date Posted: 29 Sep 2023 at 10:18
Interesting article in the Times from March. hetimes.co.uk/article/england-rugby-cant-afford-its-own-team-but-the-rfu-certainly-knows-how-to-pay-its-boss-wngv8pj60#:~:text=In%202020%2C%20Bill%20Sweeney%2C%20the,per%20cent%20to%20£668%2C000.
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Posted By: *Stalwart
Date Posted: 29 Sep 2023 at 11:08
tulip wrote:
That is amazing funding from Jersey government. If Cornish Pirates and Doncaster had received that from their councils maybe there would have been a different Championship winner |
So true. Cornwall Council have been woeful in their lack of support for the building of the new stadium which would have given CP a great chance of progressing and forming a sustainable plan for the future. The latest blow was, when everyone was confident of government levelling up money being the final piece in the jigsaw, the Leader of the council decided arbitrarily that no funding would go towards the stadium.
------------- *Stalwart
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Posted By: Paul10
Date Posted: 29 Sep 2023 at 11:25
Do you think most council tax payers would agree with you?
I know Carmarthenshire Council gave Llanelli/ Scarlets a good deal on the new stadium there.
Broadly speaking these are similar rugby areas, aren't they?
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Posted By: FHLH
Date Posted: 29 Sep 2023 at 12:36
*Stalwart wrote:
....... the Leader of the council decided arbitrarily that no funding would go towards the stadium.
|
...that's not how local government financial management works
------------- "My father told me big men fall just as quick as little ones, if you put a sword through their hearts."
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Posted By: Richard Lowther
Date Posted: 29 Sep 2023 at 12:42
*Stalwart wrote:
tulip wrote:
That is amazing funding from Jersey government. If Cornish Pirates and Doncaster had received that from their councils maybe there would have been a different Championship winner |
So true. Cornwall Council have been woeful in their lack of support for the building of the new stadium which would have given CP a great chance of progressing and forming a sustainable plan for the future. The latest blow was, when everyone was confident of government levelling up money being the final piece in the jigsaw, the Leader of the council decided arbitrarily that no funding would go towards the stadium. |
Wakefield Council have constantly dug Wakefield Trinity out of financial holes.
https://www.wakefieldfirst.com/news/article/6860/wakefield-team-secures-8.8m-funding-for-stadium-revamp/#:~:text=%C2%A38.8m%20to%20redevelop,Highways%20Committee%20in%20December%202021" rel="nofollow - https://www.wakefieldfirst.com/news/article/6860/wakefield-team-secures-8.8m-funding-for-stadium-revamp/#:~:text=%C2%A38.8m%20to%20redevelop,Highways%20Committee%20in%20December%202021 .
------------- Moderator http://www.leaguerugby.co.uk" rel="nofollow - National League Rugby Message Boards
Remember Wakefield RFC
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Posted By: Megrim
Date Posted: 29 Sep 2023 at 12:51
If my memory serves...was it not the case CCC were asked to contribute towards paying for a stadium that would still not satisfy the criteria for premiership rugby?
------------- Colin Richards
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Posted By: *Stalwart
Date Posted: 29 Sep 2023 at 13:49
Megrim wrote:
If my memory serves...was it not the case CCC were asked to contribute towards paying for a stadium that would still not satisfy the criteria for premiership rugby?
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Not the case. Cornwall Council had promised a small contribution in exchange for the stadium being a community facility and this was complied with. All the hurdles put up were duly jumped. The council contribution would follow the promised government funding. To be fair the government provided levelling up money for "ready to build projects". All the plans were in place and the new stadium would have the ability to expand to 10,000 seats when needed. The government money came through and it was then that, out of the blue, Council Leader Linda Taylor decided it wouldn't be allocated and would be spent elsewhere as the Truro area was receiving too much. Recently The Hall for Cornwall, in Truro, was refurbed. "The theatre closed in June 2018 for what was supposed to be a two-year refurbishment costing more than £20m. It has cost £26m and taken three years to complete, partly longer than planned because of the coronavirus pandemic." Of this nearly £6m came from Cornwall Council.
------------- *Stalwart
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Posted By: Steve@Mose
Date Posted: 29 Sep 2023 at 15:17
http://www.bbc.co.uk/sport/rugby-union/66960360" rel="nofollow - Rugby Players' Association calls for changes to sport after club goes bust
The Rugby Players' Association (RPA) says changes must be made to the way rugby union is run after the collapse of Championship holders Jersey Reds.
The club announced on Thursday that it was to cease trading.
They are the fourth professional club to go bust in the past 12 months.
"This is again a failing of the current rugby ecosystem and why we are pushing so hard for changes to be made to governance of the professional game," general secretary Christian Day said.
The RPA says it is helping to support Jersey's players as they come to terms with the club's demise.
Reds had needed £370,000 of money from Jersey's government to tide them over in the summer as they looked for new investment.
But when a planned new investor pulled out - with the club citing uncertainty over the future of the second tier - they had no choice but to cease trading.
"Players and staff have been left with their lives turned upside down overnight," added Day.
"These are talented people trying to forge their way in life, dependant on the club to pay their wages that they have earned and deserve. It is unacceptable that this has again happened with no prior notice to players.
"It is clear that there must be a better support system in place for all elite players which must be rectified as a key part of any new funding agreement."
'Our level of funding isn't adequate'
Former Jersey Reds player and coach Alex Rae is now head coach at Coventry, who were due to travel to Jersey in the opening round of the Championship next month.
He says the Rugby Football Union (RFU) must support second-tier clubs in England, having cut their funding drastically after the Covid-19 pandemic.
"Our level of funding isn't adequate from the RFU," he told BBC Radio Jersey.
"Since Covid it was around £650,000 and that dropped to £160,000, and we're one of the only professional sports where after Covid it hasn't been reinstated to that level. We've stayed the same, which puts a massive stress on clubs.
"Coventry are very well supported - we had 4,000 at the Saracens game and are averaging well over 2,000 - everyone's got a different model, but the RFU funding needs to change.
"There needs to be a clearer picture of how funding looks, how the game looks going forward, because that helps attract sponsors and investors and that clearly isn't happening at the minute." |
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Posted By: *Stalwart
Date Posted: 29 Sep 2023 at 15:40
FHLH wrote:
*Stalwart wrote:
....... the Leader of the council decided arbitrarily that no funding would go towards the stadium.
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...that's not how local government financial management works
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Well it happened in Cornwall. Mind you, Cornwall Council and financial management don't fit in the same sentence.
------------- *Stalwart
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Posted By: spy28482
Date Posted: 29 Sep 2023 at 18:12
I’m hearing stories of the club not paying the players rent in some cases for 2-3 months which as far as I understand is how these contracts are structured these days.
Some players are scratching around for money to pay for flights so that they can get home as they’ll have no where to live.
Seems like the Stewards of the club knew this was coming and didn’t deliver any warning.
Very disappointing to say the least. ![Thumbs Down Thumbs Down](smileys/smiley21.gif)
------------- Jeeeeerseeeeeeey!!!
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Posted By: FHLH
Date Posted: 29 Sep 2023 at 19:45
*Stalwart wrote:
Well it happened in Cornwall. Mind you, Cornwall Council and financial management don't fit in the same sentence. |
Seriously though there will be a long audit trail of documents ending up in a committee decision and and stack of undocumented arm twisting
That's what the Freedom of Information Act is for.
However it's a sad indightment of back corridor work.
------------- "My father told me big men fall just as quick as little ones, if you put a sword through their hearts."
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Posted By: Robb
Date Posted: 29 Sep 2023 at 21:07
Its awful that this has happened to one of rugby's success stories (tax haven not withstanding), I followed them when they were back in my team's league and remember when they brought those Tongans in (and the big hair). It goes to show that you can reach the top through our pyramid and it is great they won the Championship.
The killer is the Premiership cartel who obstructed them going up (despite them losing 3 of their own) and insistance of that MSC (which if Ealing had the bottle to go through with their lawsuit, might have helped stop this) that was the nail in the coffin. I am very disappointed to hear about the Championship Champions going under.
It kind of makes it either good fortune (or good foresight) for them having done a London Welsh and spun off their amateur team as a legally separate club to safeguard the future of league rugby in Jersey. That is most important in my view that they do protect the continuation of the sport in the Bailiwick.
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Posted By: corporalcarrot
Date Posted: 29 Sep 2023 at 21:23
I hope Jersey rebuilds from this mess. JRFC have a game tomorrow and hundreds will go to see it. It may take a few years but the local people love the game and all of the schools play. It may take 5 years or 10 but its too important to give up and I genuinely believe Jersey have added something to the game in the last decade. I saw them lose lots of games like away to Mighty Roth where they got their first Championship point but they won countless matches against all odds. We need to ensure the players and staff who lose their jobs are financially protected and supported and sort out the shambles at the RFU which exist to protect themselves and the entitled clubs who take more than they contribute.
------------- Dont kick it. Pick it up and GO FORWARD.
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Posted By: KnightsBoy
Date Posted: 29 Sep 2023 at 21:28
corporalcarrot wrote:
I hope Jersey rebuilds from this mess. JRFC have a game tomorrow and hundreds will go to see it. It may take a few years but the local people love the game and all of the schools play. It may take 5 years or 10 but its too important to give up and I genuinely believe Jersey have added something to the game in the last decade. I saw them lose lots of games like away to Mighty Roth where they got their first Championship point but they won countless matches against all odds. We need to ensure the players and staff who lose their jobs are financially protected and supported and sort out the shambles at the RFU which exist to protect themselves and the entitled clubs who take more than they contribute. |
Well said that man
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Posted By: The Blues
Date Posted: 30 Sep 2023 at 09:05
Blues said
https://bedfordrugby.co.uk/news/2023/09/message-chairman" rel="nofollow - https://bedfordrugby.co.uk/news/2023/09/message-chairman
If we don’t fill the gap we now have a huge gap in the season between home games! 3 Feb to 23 Mar, wonder if some have longer.
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Posted By: Camquin
Date Posted: 30 Sep 2023 at 09:35
As I said earlier, this is the second time in three seasons Cambridge have had this - and I forgot that it also applies to Caldy.
In both cases, the club claimed it had a new sponsor lined up, but pen was never put to paper.
------------- Sweeney Delenda Est
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Posted By: Paul10
Date Posted: 30 Sep 2023 at 10:17
Oddly enough this is very reminiscent of community rugby.
I played in a sponsored shirt that the sponsor never paid for.
The player who had sorted that had managed to get the sack before the sponsor paid up...
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Posted By: No 7
Date Posted: 30 Sep 2023 at 10:29
.
------------- Ambition should be made of sterner stuff.
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Posted By: Se7en
Date Posted: 30 Sep 2023 at 11:38
It is madness really. As someone quite rightly pointed out earlier, being employed as a 'professional rugby player' in England anywhere outside the Prem (and actually in the Prem also for that matter - LI, Warriors, Wasps) is fraught with uncertainty and risk, even more so when said players have family and dependants uprooting and moving their lives, jobs, schools etc also.
It does beg the question as to what is stipulated on their contracts re support, compensation, redundancy package (highly unlikley) and what they are entitled to should their club fold essentially overnight through no fault of the player/employee?
Many businesses (and Jersey Reds are/were a business) have unions, federations, informed representatives to fight the corner of the employee and ensure fair treatment in the wake of redundancy. Is it the case that professional rugby players go into this line of work knowing that they could be out of a job at the drop of a hat, with no subsequent support or legal obligation on the part of the business (rugby club) to provide for their now ex-employees' welfare and financial stability?
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Posted By: Camquin
Date Posted: 30 Sep 2023 at 13:09
The Rugby Players' Association is the player union.
Their statement on the jersey situation is here:
https://therpa.co.uk/news/2023/9/rpa-statement-jersey-reds/" rel="nofollow - https://therpa.co.uk/news/2023/9/rpa-statement-jersey-reds/
------------- Sweeney Delenda Est
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Posted By: No 7
Date Posted: 30 Sep 2023 at 13:18
From the Rugby Players Association
These are talented people trying to forge their way in life, dependant on the club to pay their wages that they have earned and deserve. It is unacceptable that this has again happened with no prior notice to players.
------------- Ambition should be made of sterner stuff.
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Posted By: carlos fandango
Date Posted: 30 Sep 2023 at 14:33
And then you read this.....
https://www.ruck.co.uk/maro-itojes-staggering-wage-demands-would-make-him-englands-highest-paid-player/" rel="nofollow - https://www.ruck.co.uk/maro-itojes-staggering-wage-demands-would-make-him-englands-highest-paid-player/
Makes you wonder.
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