USA Rugby has filed for Chapter 11 bankruptcy because its financial woes have been exacerbated by the coronavirus shutdown.
In financial muddle since 2018, USA Rugby had a recent attempt to restructure set back this month, when it suspended all activities indefinitely in the face of the pandemic.
USA Rugby files Chapter 11; Agrees to support for continuation of reorganization.
— USA Rugby (@USARugby) March 30, 2020
MORE » https://t.co/uCAdmqNEPj pic.twitter.com/MhK9zKR1nI
The loss of spring and summer membership dues and sponsorship pullback have “resulted in significant loss of revenue,” and the sport’s national board and congress agreed Sunday that filing for Chapter 11 combined with more approved loans from World Rugby was “the best platform to swiftly and efficiently address challenges and deliver a foundation for future stability.”
“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,” USA Rugby said in a statement Monday.
The measure will protect and support the men’s and women’s national sevens and 15s programs, the body said.
Ranked: The 6 best American rugby players to play in the Premiership:
6. Luke Gross
The 6-foot-9 lock from Indiana started as a pro in 1997, just as British rugby was entering the professional era, and continued to play through the 2006-07 season. Playing for Harlequins, Rovigo, Roma, Scarlets, Rotherham, Newcastle, and Doncaster, Gross spent a decade making the hard yards on the field and plenty of friends off it.Embed from Getty Images
5. AJ MacGinty
The Sale Sharks flyhalf has only been a pro for a few years, but he has made an enormous impact. It has been rare for a USA flyhalf to get regular playing time on a professional team in Europe, never mind become recognized as one of the best.Embed from Getty Images