The Rugby Football Union and USA Rugby have joined forces after the RFU decided to become a minority shareholder and strategic partner in Rugby Int’l Marketing. The new subsidiary of USA Rugby is representing the NGB’s commercial rights and is exploring new revenue streams to support the development of rugby in the U.S. Both organizations declined to provide specific information about the size of the investment, which was announced Friday. However, RFU Chief Commercial & Marketing Officer Sophie Goldschmidt described it as “significant.” She added the partnership is a first in the world of rugby. “I think it’s the first time it’s happened in rugby full stop, but it’s definitely the first time that we have done something like this.” The RFU believes rugby has a huge potential in the world’s largest sports market. Goldschmidt is confident that the partnership will also generate a positive financial return for the RFU, which would be re-invested into the game back in England. Aside from the financial investment, USA Rugby will benefit from the RFU’s institutional knowledge, including running major international events. With the Rugby World Cup Sevens coming to S.F. in ‘18, the first step of the new partnership is to staff up RIM and start moving it forward on the commercial side, according to USA Rugby CEO Nigel Melville.
SIMILAR SET-UP TO SUM: RIM was set up in the last six months and is similar to Soccer United Marketing, the commercial arm of MLS. The similarity to SUM should not come as a surprise considering that DC United co-Owner Will Chang is also a USA Rugby board member. “He understands the model and how it has worked for soccer,” Melville said. It is now up to RIM to take that model and figure out how to apply it in commercializing the game of rugby. Melville sees professional rugby as a big opportunity going forward. He believes that setting up a pro league in the U.S will enable USA Rugby to have a stronger national team and therefore become more competitive globally. RIM currently has a staff of four, made up of USA Rugby’s international events team. It is looking to appoint a chief commercial officer and supporting team to drive the sponsorship side of the organization. Melville said that the NGB is approaching a time in the year where it is looking at new sponsorships for the future. He stated that a number of global rugby sponsors are also partners of the RFU and could be interested in the U.S. market.
LOOKING AT AN OTT CHANNEL: USA Rugby also is looking at the digital side of things. “We are looking at an over-the-top digital channel, where we can put rugby 24/7,” Melville said. The channel would feature never-before-seen archive material, delayed rights to international leagues and competitions and USA Rugby’s national events. The partnership with the RFU will also include coach and player development, though there are no plans for the England national team to travel to the U.S. in the near future. USA Rugby plans to base RIM in N.Y. and not at its HQ in Boulder, Colo., with the office expected to open this fall. The RFU in a statement made clear that it will have “no involvement in, or influence over USA Rugby’s governance or structure.”
