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STATES OF JERSEY
FUNDING FOR THE JERSEY REDS
Lodged au Greffe on 2nd October 2023
by Deputy L.J. Farnham of St. Mary , St. Ouen and St. Peter Earliest date for debate: 7th November 2023
STATES GREFFE
2023 P.78
PROPOSITION
THE STATES are asked to decide whether they are of opinion −
to request the Minister for Treasury and Resources to take the necessary steps to ensure that additional funding is provided by the States to the Jersey Reds to allow them to complete the 2023-2024 rugby season.
DEPUTY L.J. FARNHAM OF ST. MARY, ST. OUEN AND ST. PETER
REPORT
One of Jersey’s greatest sporting success stories of all time has to be the rise of the Jersey Reds culminating in winning the RFU Championship title in April of this year.
In less than two decades the Jersey Reds have progressed from effectively playing park rugby to becoming the best national side outside of the RFU Premiership.
The business model review, compiled by Santander International (Jersey Reds bankers and main sponsors) is attached for Members’ reference.
Further appendices, which set out important information as to the economic and social benefits that professional rugby provides to Jersey, will be provided as soon as possible as an addendum to this proposition.
Financial and staffing implications
There are minimal staffing implication related to this Proposition. With regards the financial costs, it is not possible to quantify the exact implications, however the implication of not progressing this proposition are clear - a loss to the Island of between £3million and £6 million in economic benefit
Page - 3
P.78/2023
APPENDIX 1 –
JERSEY REDS – Business Model Review (Prepared by Santander International)
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Under the three-year plan the financial model for the Jersey Reds is self-sustaining by 2025, with Government support tapering from 2023 to nil by 2025. Economic value to the island under the new PGA model is expected to increase materially given support and profile of other Premiership 1 and Premiership 2 clubs, including regular television coverage of Jersey Reds fixtures providing opportunity to showcase the island and drive further tourism. Should the new PGA fail to materialise for the 2024 / 2025 season, it is recommended that a further review be undertaken, the outcome of which could include an orderly wind-up of the professional club.
The recommendation is to support the proposed three-year plan to keep all options on the table pending the confirmation of the new PGA, in conjunction with enhancements to Board composition to improve governance, transparency and communication. This is to include bi-annual independent financial reviews by Santander and disclosure of findings to Jersey Government (the first being reportable by December 2023).
Government are asked to consider whether they would be willing to support the £590k government subsidy for 2023 (including the approved £90k), to be paid quarter 3 2023, and a further £300k in 2024 (on confirmation of PGA funding and independent financial review by Santander). The alternative is an immediate unstructured collapse of Jersey Reds, loss of any future economic value to the island and write-off of the £500k Covid Support Loan and Social Security liability.
Confidential
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JRFC 3 Year Plan - Income Statement |
Forecast 30.06.25 30.06.26 30.06.24 £ £ £ |
Actual 30.06.2020 £
30.06.2023 30.06.2022 30.06.2021 30.06.2019 30.06.2018 30.06.2017
£ £ £ £ £ £
Staff Costs
Players 1 ,156,212 1,156,212 1 ,156,212 Coaches 507,012 482,869 459,875 Administration 528,960 501,822 479,354
2 ,192,184 2,140,902 2 ,095,440 Player rent costs 5 8,164 55,394 5 2,756 2 ,250,347 2,196,296 2 ,148,196
1,129,976 968,344 834,463 1 ,215,174 1 ,231,435 1,076,387 1 ,172,233 4 34,227 396,995 368,416
4 76,713 428,116 346,408 339,707 319,370 3 31,238 205,053 2,040,916 1 ,793,455 1 ,549,287 1 ,554,881 1 ,550,805 1,407,625 1 ,377,286 97,430 4 7,121 5 5,812 1 7,639 (1,719) 2 4,692 2,138,346 1 ,840,576 1 ,605,099 1 ,572,520 1 ,549,086 1,407,625 1 ,401,978
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9-10 |
10-11 |
11-12 |
12-1 |
1-2 |
2-3 |
3-4 |
4-5 |
5-6 |
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9-10 |
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Monday |
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Tuesday |
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Wednesday |
Jersey Reds training |
Community / Jersey Government |
5-a-side / Touch Rugby |
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Friday |
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Saturday |
Jersey Reds / JRFC |
5-a-side |
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Sunday |
Mini's and Juniors |
JRFC |
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