USA Rugby files for bankruptcy due to financial constraints

USA Rugby becomes the latest sporting causality of the pandemic coronavirus after it had filed for Chapter 11 bankruptcy due to financial constraints.

The American board already was in financial crisis but the cancellation of all the sporting events including the domestic competitions due to the spread of COVID-19 did not help their cause.

It was in December USA Rugby released a statement about their financial constraint following legal battle with PRO Rugby and the additional expenditure on the Men's competition leading to the World Cup last year.

Now USA Rugby expressed hope that a financial package from World Rugby which will be due as a part of the filing will help them stabilise the game in the country.

“This is the most challenging period this organization has faced and all resolves were never taken lightly in coming to this determination,” USA Rugby chair Barbara O’Brien said in a statement.

“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.”