COVID-19: USA Rugby files for bankruptcy
NEWS: USA Rugby officially filed for bankruptcy as the federation’s financial implications have worsened during the Covid-19 pandemic.
In a statement, USA Rugby revealed that following detailed consultation with legal advisors, the Board of Directors and Congress voted to officially file ‘Chapter 11 bankruptcy as a result of compounded and insurmountable financial constraints,’
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USA rugby said that the current suspension of sanctioned rugby activities caused by the ongoing COVID-19 pandemic has “accelerated the existing financial challenges facing the Union, and a reorganization process will now be progressed with input from World Rugby,’
“The USA Rugby Board and Congress agree that filing for Chapter 11 bankruptcy supported by a robust action plan.
“The filing is reinforced by a financial support package approved by the World Rugby Executive Committee (EXCO), where measures will enable USA Rugby to revitalize from a governance and financial perspective; including key milestones, metrics and controls.
“Additionally, this measure will protect and support the men’s and women’s sevens and fifteens programs as they continue to compete on the world stage,”
“Through the Chapter 11 filing, significant staff and budget reductions were required at the National Office. The USA Rugby Headquarters will continue to operate on a condensed staffing model through the remainder of the restructure.
“Further information on the accelerated reorganization, along with pertinent updates pertaining to the effects of COVID-19 will be regularly communicated on the USA Rugby website and social media channels,”
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This certainly comes a shock to the players, especially to some South Africans like Hanco Germishuys, Ruben de Haas and Shaun Davies are some of the South African-born players plying their trade in the USA.
Former Springboks assistant coach Gary Gold has been the men in charge of the national side, while former Springbok Jaque Fourie is the defence coach.
Source: USA Rugby
