RFU becomes a share holder in USA Rugby

It was announced last week that the Rugby Football Union (RFU) had become a minority shareholder in Rugby International Marketing (RIM), the new commercial arm of USA Rugby.

The move represents a growing interest in England to foster the growth of rugby in the United States and follows on from a cooperation deal the Aviva Premiership struck with the National Rugby Football League, a fledgling organisation intent on bringing professional domestic rugby to the US.

The NRFL’s ambitions seem to have been tempered by the recent cancelation of friendlies between the Leicester Tigers and NRFL Rough Riders in Philadelphia, and Saracens and the Crusaders in New Orleans, but the RFU’s involvement with RIM takes English interests in the US to a new, higher level.

It is understood that the RFU’s primary role in the deal will to be offer strategic advice, as RIM looks to expand USA Rugby’s revenue streams by exploring new commercial opportunities, one of which could be the playing of an Aviva Premiership game in the US this season.

It has been suggested that London Irish may be willing to give up a home game and head across the Atlantic in 2016, potentially playing a fixture in either New York or Boston. With Irish set to host Saracens the weekend before St Patrick’s Day and Gloucester the weekend after, it is likely one of these two games would be the preferred option to showcase Premiership rugby in the US.

With rugby the fastest growing team sport in the US, the opportunity to invest in its future proved too enticing for the RFU to ignore and CEO Ian Ritchie was quick to allay any fears that the deal would diminish funds being invested into English rugby.

“We have had another record year financially and we anticipate this investment in rugby in the USA will have a beneficial effect on rugby in England, the US and across the world, while not diluting our investment and strategic ambitions for rugby in England.

"The RFU’s financial returns as a partner in RIM will be reinvested back into the game in England. Investing in the world’s largest sporting market makes a great deal of sense and we look forward to working with USA Rugby.”

Both the RFU and USA Rugby have been quick to stress that the RFU will have no say over the governance and direction of USA Rugby as part of the deal, and that the RFU’s primary role will be as commercial consultants.

USA Rugby CEO Nigel Melville has welcomed the agreement and said: “We are delighted to have made this mutually beneficial agreement with the RFU. Their expertise and guidance will help to ensure that we further commercially develop rugby in the USA. RIM will help us generate new revenue streams that will support the continued development of the game in the USA.”

Though the preseason friendlies Leicester and Saracens had planned in the US have been cancelled, admittedly with the NRFL, who are not affiliated with USA Rugby, Harlequins will be heading to the States at the end of this month. The Aviva Premiership side are set the play the USA Eagles at PPL Park in Philadelphia, as both teams gear up for their upcoming competitions.

Tapping into the US sports market, which is the largest in the world, remains one of World Rugby’s highest priorities moving forward, as they look to grow the sport globally, and the RFU’s stake in RIM has been welcomed by the sport’s governing body.

With the 2018 Rugby World Cup Sevens set to be hosted in San Francisco and both 7-a-side and 15-a-side codes growing at a rapid rate, the future certainly looks bright for rugby in the US.