The American Rugby Federation had to declare bankruptcy due to the coronavirus crisis. - Filippo MONTEFORTE / AFP
In the grip of "insurmountable financial constraints" since it stopped its national competitions due to the coronavirus, the American Rugby Federation declared bankruptcy on Monday. By placing itself under Chapter 11 bankruptcy protection, USA Rugby hopes to reorganize and restructure its debt.
"The existing financial challenges have been heightened by the impact of the Covid-19 pandemic on activities related to rugby," said the body, which has shut down all its national competitions since March 20, therefore finding no income, while having to make up a financial deficit.
National teams spared
The bankruptcy file includes a financial support plan approved by the executive committee of the world governing body World Rugby. The goal is to allow the American federation to reorganize, with other creditors, to put in place a possible restructuring plan.
“This organization is going through the most difficult period of its existence. None of our decisions were taken lightly, ”said Barbara O'Brien, President of USA Rugby. On the other hand, the national male and female rugby XV and VII teams will continue to participate in the competitions in which they are entered when rugby can regain its rights after the pandemic.
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- Covid 19
- United States