More money needed for Reds following Covid and fund cut?

More money needed for Reds following Covid and fund cut?

A six-month progress review of the Government Plan has outlined the impact of the outbreak on public sector projects, many of which have had to be deferred, delayed or ‘reduced’ as a result of the pandemic.

The report says that the promotion of professional rugby in Jersey has been one of the workstreams that has been delayed. It also outlines that further funding from the taxpayer might be required if the club is to remain a professional outfit.

Earlier this year financial pressure increased for the Reds when the Rugby Football Union, the sport’s national body, announced it was reducing central funding for Championship clubs by 40% for the 2021/22 season to £288,000 each.

The Government Plan update says that the club has faced a further financial setback due to the pandemic destroying any income received from gate receipts at matches.

‘Work needs to be undertaken to assess the impact of Covid-19 on spectator restrictions and the reduction in RFU funding on the club’s finances, predicted cash flows and economic benefit to the Island,’ the report says.

‘The decision on whether to progress an Island Stadium (potentially located at the rugby club) and with the Jersey Reds as the anchor tenant/co-party, together with the timing for the delivery of the project, will be critical to these considerations.

‘Government Plan funding for 2021-23 may need to be increased and extended if professional rugby is to be maintained in Jersey.’

Jersey Reds received £150,000 of financial support from the government for the 2018/2019 season.

Supporters of subsidising the rugby club, such as tourism body Visit Jersey, have argued that the sport brings thousands of visitors to the Island and that the economic benefits outweigh the funding cost.

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