Jersey Reds Cease Trading
Championship title-holders Jersey Reds have announced that they "ceased trading" on Wednesday and now liquidation is "inevitable" unless funding can be found.
The Reds have competed in English rugby's second tier for the past 11 seasons, having been promoted from the amateur levels of English rugby.
Reds split from Jersey RFC in 2022 and went on to win the league and reach the Championship Cup final in May.
The club have cited costs from Covid-19 and reduced funding as causes.
Reds say they are unable to pay players and staff salaries that are due at the end of this month.
"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," Reds chairman Mark Morgan said in a statement.
"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."
In a statement the Rugby Football Union says it is working with the player's union, the Rugby Players Association (RPA), to support those affected.
"It is extremely disappointing that investors would take decisions at this early point in the season to place the club in such a position," the RFU said.
"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 Reds say they will not be travelling to England to face Cornish Pirates in their Premiership Rugby Cup tie on Friday, with the RFU to outline the impact on the competition - as well as any changes that may need to be made to this season's Championship as a result.