Jersey Reds were hoping to challenge for a place in English rugby's top flight. Photo: Getty Images/Malcolm Couzens
English Rugby Union is at war after last season's Championship winners Jersey Reds became the fourth team in a year to plunge into financial crisis following a trading halt.
At the start of another day of grief and blame in the sport, Jersey staff were told they would not be paid their salaries for September and that liquidation appeared imminent. In response, the Rugby Football Union criticized the timing of its investors' withdrawal as «extremely disappointing».
Senior sources in English rugby union described the events on Channel Island as a «bolt from the blue» and Rob Webber, the Jersey head coach, expressed internal confusion in a post on X in which he wrote: «We have been led to believe we are in a position of strength.» However, later on Thursday Simon Halliday, chairman of Championship clubs, insisted that the RFU had been «warned on numerous occasions» that the Jersey government was concerned about the lack of reliable second-tier financial support.
Earlier this month, the Jersey Reds beat Bath 34-10. Photo: CameraSport/Bob Bradford
The controversy could come to a head on Friday. during a meeting of the RFU Council that could become explosive as influential figures discuss the new Professional Gaming Agreement (PGA) and, in particular, future plans for the second tier.
In a statement on Thursday morning, Jersey » explained that they had stopped trading the night before and were taking aim at the ongoing uncertainty surrounding the structuring of the game in England.
“We were able to start the season and retain sufficient funds to cover the costs of the summer, but regret that our negotiations with potential new investors, as well as existing ones, were unsuccessful,” said Jersey chairman Mark Morgan.
“At one stage at the end of last season it looked like there was a real way forward for Division Two with the new PGA coming into force from the summer of 2024, but Championship clubs have been left in the dark since then and this has led to growing fatigue among those who may have invested but could receive no concrete guarantees as to when the new structure would emerge or how it would be financed.»
Jersey players were informed of their plight club at a meeting at 7.30 am. Within hours they were being offered to other professional teams in scenes grimly reminiscent of those at Worcester Warriors, Wasps and London Irish over the past 12 months.
The club were hoping to achieve promotion
Last season, Jersey beat Ealing Trailfinders to the top of the Championship table. Although they were unable to achieve promotion to the Premier League this season as their facilities did not meet the competition's minimum standards, the achievement was still significant for a club that had made progress over the last decade under Harvey Biljohn, their director. rugby.
The club enjoyed an impressive 34-10 win over Bath in the Premiership Rugby Cup earlier this campaign, but have now had to cancel Friday's match against Cornish Pirates in that competition. The RFU, through its financial viability team, is expected to determine the next steps regarding Jersey's insolvency in the coming days. The governing body has already expressed its disappointment with the current situation.
“It is extremely disappointing that investors have decided to put the club in this position so early in the season,” the RFU said in a statement on Thursday.
“Championship clubs have received clear confirmation from the RFU of funding for the 2023–2023 season. 24 and we are working with the Championship and Premier Rugby League on a new professional playing partnership and Premier League 2 kit, with funding levels to be confirmed later this season. calendar year. The Championship has been fully involved in these discussions since February, aimed at stabilizing and strengthening the professional game.
“This news will clearly impact the Premiership Rugby League Championship and Cup season, which was introduced this season as a way of offering fans a new format, bringing with it the experience of playing for Premier League teams and the opportunity to welcome new fans. to Championship clubs and help them attract new audiences. Further information on the impact of this on the Premiership Rugby League and Championship season will follow.»
In an open letter, Halliday described the situation in Jersey as a «tragedy» and a «catastrophe.»
< p> «Anyone who loves rugby should listen very carefully to the message that Jersey Reds investors are sending with their decision to withdraw their support for funding a vital second level of the game,” the document says.
<р>“The point is that continued uncertainty about central financial support has made it impossible for them to continue operating. They essentially said: If the governing body doesn't report to you, why should we? The owners and investors of all Championship clubs have really taken note.
“The Rugby Union has been warned on numerous occasions that the Jersey Government is concerned about the lack of financial commitment to the league. in which the «Reds» played.
“The Championship's owners and investors also noted that the Rugby Union's response to this tragedy was to issue a statement blaming Jersey Reds investors and which included a statement that the Championship was 'fully informed' of the ongoing financial discussions about the future of the professional game.»
Halliday promised that owners and investors of Championship clubs «will have more to say on this issue and other aspects of today's catastrophic events after the meeting of the RFU Council.»
Premier League 2, essentially a revamped second tier of professional rugby in England, is seen as a vital pillar of negotiations for professional gaming agreements. It is understood proposals being discussed included seamless promotion and relegation between Premier League 1 and Premier League 2, Thursday night matches to support any offers to broadcasters, and maximum squad sizes in the two divisions to prevent player hoarding.
Jersey separated the club's amateur and professional divisions in 2022 to protect the organization, a move Morgan believes was justified. Jersey RFC currently top Regional 2 South Central, a sixth-tier league that includes teams such as Guildford and, ironically, London's Irish Wild Geese.
“There are a large number of players, coaches and other players. staff who have made a huge contribution to the club in recent seasons and we regret the huge effect this will have on them all — it is a very sad day,” Morgan said.
Jersey's fate draws attention to planned changes to the RFU Article by Charlie Morgan (with red tag ANALYSIS)
Jersey's plight, described by one senior source as a «bolt from the blue», appears to have stunned everyone and follows the collapse of Worcester. Warriors, Wasps and London Irish last season. It comes against a backdrop of huge divisions in the English game and the timing, ahead of a heated Rugby Football Union board meeting expected on Friday, is exciting.
Jersey topped the Championship last season and, despite standards barring them from promotion to the Premier League, were optimistic about further development. Harvey Biljohn's side even thrashed Bath at the Rec Stadium in the Premiership Rugby Cup two weeks ago to highlight their potential. Now this victory can be used to demonstrate the qualities of the unlucky players who find themselves in the labor market.
We have had to get used to the fact that such situations entail terrible loss of life. In a broader sense, they are also a mirror of governance. This is unlikely to dissuade anyone calling on Bill Sweeney and Tom Ilube to leave their positions as chief executive and chairman of the RFU.
Championship clubs have had to face cuts in funding from the RFU since 2020. Before this, it seemed that many of them were cutting their costs accordingly. This made the exploits of Ealing Trailfinders, Coventry and Bedford Blues more impressive because they seemed to be building sustainably — or as resiliently as a professional rugby union team can, and more resiliently than Premier League clubs. leagues that receive greater support from central revenues. Apparently Jersey's imminent liquidation indicates that they, too, overdid it.
The club's statement on Thursday morning blamed ongoing uncertainty in the league's structure. It is clear that the core of the new professional gaming agreement will be a strong second tier, likely ring-fenced from the divisions below it. The third tier will therefore be highlighted as the pinnacle of community play.
Seats in the second tier, tentatively designated as «Premier League 2», will be put up for auction in what is seen as a way back. for Worcester, Wasps and London Irish. Theoretically, of course, Jersey could return along this path. The competition, with smoother promotion and relegation to and from Premier League 1, would ideally feature established clubs as well as Phoenix franchises.
It has been suggested that Premier League 2 could support a proposal for an agreement to broadcast games on Thursday evenings, following the example of Pro D2 in France. There has also been talk of maximum team sizes in Premier League 1 and Premier League 2, which would spread talent and prevent top teams from hoarding players.
In short, there appears to be a desire to achieve second level and achieve safety in numbers. However, the fate of Jersey complicates an already difficult situation.
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