USA Rugby will seek Chapter 11 bankruptcy protection, citing "compounded and insurmountable financial constraints." The NGB mentioned the loss of revenue due to the pandemic, but USA Rugby has been struggling for years in part due to a disastrous attempt to spin off its commercial rights into a for-profit company, Rugby Int'l Marketing. World Rugby has agreed to bail out USA Rugby, officials said. They hope that support, along with the reorganization plan that will be submitted to a court, will allow it to emerge from bankruptcy under its own control. That will be subject to court supervision and input from all creditors. USA Rugby ended '18 nearly $5.4M in debt after losing $1.95M on operations that year, according to tax forms. World Rugby already stepped in as part of a recovery plan engineered late that year, but the pandemic has stopped spring and summer membership dues, leaving the organization with no other choice, officials said. Elite men's and women's teams will continue to compete internationally during the bankruptcy proceedings once rugby returns.
