Common name scarlet caterpillarclub.
Apologies for the poor picture and lack of digging it up (in my defense it was freezing up there!) but another interesting story behind this little reddish gem poking out of the grass.
You really should dig this one up to enjoy its underground treasure as at first glance you might think it's just a club fungus.
This species grows parasitically on buried insects, this one in particular on butterfly and moth pupae and larva. It's a great aid for identification when you dig to find what its growing on or in this case out of!