Reds regain club assets through new loan14/02/2018
Jersey Reds have secured new loan finance that has enabled the club to buy back the assets that were sold in November 2016.
The news was announced to members at a meeting at the Jersey Reds clubhouse - one of the assets, along with the pavilion, stands, car park and both main pitches at St Peter, which have now reverted to the club's ownership and control.
A small group of benefactors has provided a 10-year loan of £1.5million to Jersey Reds - this money has already been used to pay off the previous deal, a sale-and-leaseback agreement in November 2016 that secured the immediate future of the club after accumulated annual losses.
"This is fantastic news for Jersey Reds, our members, players, sponsors and supporters, and for the Island," said Club Chairman Mark Morgan. "Being forced to sell our assets was a painful but necessary process, but that chapter is now behind us and we can look to the future as we continue recent work to make the club's finances sustainable.
"During the project to review our finances, cut expenditure and maximise income, we have been approached by a group of sympathetic individuals willing to provide this long-term loan at very favourable terms.
"The club remains in debt, and our work to stabilise our finances and raise funds to clear what we owe will continue, but we now have a longer period in which to do this and - most importantly - ownership of our assets. We are no longer tenants, which means we no longer have to pay rent."
It is still hoped that the club will realise significant funds through the sale of 'Field 790', adjoining land that was not part of the November 2016 sale-and-leaseback deal.
On the field, the Reds' players and coaches are preparing for a vital home league game against Ealing Trailfinders, which is a 7.45pm kick-off this Friday at Stade Santander International.