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USA Rugby Files For Bankruptcy

USA Rugby Files For Bankruptcy

USA Rugby has officially filed for bankruptcy due to existing financial struggles coupled with the impact of COVID-19 (Coronavirus).

Just two weeks after all professional rugby competitions in the US were suspended due to the Coronavirus pandemic, a majority vote from the USA Rugby board of directors voted in favour of bankruptcy.

This decision reportedly comes in the face of pre-existing financial challenges, largely caused by a 2019 budgetary overspend in attempts to rapidly expand the Major League Rugby (MLR) club competition.

USA Rugby chair, Barbara O’Brien, said in a statement the men’s and women’s senior national teams will continue to compete as normal when competitive action returns following the global pandemic.

“This is the most challenging period this organisation has faced, and all resolves were never taken lightly in coming to this determination,” O’Brien said.

“While the current climate is of course much larger than rugby, we remain focused with stakeholders and supporters in the continued effort toward a balanced rugby community where the game can truly grow.

“[Filing for bankruptcy was] the best platform to swiftly and efficiently address challenged and deliver a foundation for future stability,” she said.

The bankruptcy is set to be categorised as a chapter 11 form of bankruptcy and will ensure a reorganisation of business affairs, debts and assets; this form of bankruptcy is often referred to as a ‘fresh start’ in the US.

As part of the announcement, World Rugby, rugby unions’ global governing body, will provide financial support while USA Rugby undergoes the restructuring process.

World Rugby will also reportedly assist in an expedited timeline of reorganisation to ensure USA Rugby can come out on the other side of the COVID-19 pandemic in a position of financial stability and growth.

As USA Rugby will be operating on a majorly reduced staffing structure throughout the pandemic, the executive board and minimal staff will be working with World Rugby throughout the suspension and cancellation of global sport.

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