CGRU update on the likely USAR impending bankruptcy
March 30, 2020
Like many organizations, the COVID-19 pandemic set off a string of events that ultimately increased the speed of the demise of USA Rugby in its current state. USAR was already on unstable financial footing and the lack of new youth CIPP dollars and Sponsorship money from lack of events ended any hope of avoiding some type of bankruptcy. We are not attorneys, not claim to be, but this is what we believe is currently going on.
We respect USA rugby and world rugby and the process and would not leak out any information, but this is in response to the article posted by Alex Goff you can find here.
It is believed that World Rugby has agreed to help USAR financially in order to allow to proceed with Chapter 11 bankruptcy instead of Chapter 7. This still must be approved by a Judge. If Chapter 11 is allowed, then USAR would restructure, and if it is not allowed then Chapter 7 would dissolve the organization. If this was to pass what does that mean to you?
Chapter 11 would mean we have hope that we would have a summer 7s season, as insurance premiums would likely be immediately paid. We would, of course, have to wait for COVID and the shelter-at-home and such to be over. Chapter 7 would likely mean no rugby until a new organization could be spun up, and the timeframe for that is unknown, but many groups have been preparing for this possibility.
The different stakeholders, college, youth, and adult rugby have all been working towards this possibility behind the scenes since December and some longer and are at different stages of development. The work done will be beneficial if Chapter 11 happens, because we have defined much more clearly what services we want from USA rugby and if Chapter 7 happens, well we are that much closer to seeing a new organization or organizations spring up in order to continue to play rugby as quickly as reasonably possible.
That is our current understanding, and that may change as more information it made available.
