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USA Rugby files for bankruptcy as a result of coronavirus shutdown

The COVID-19 pandemic has led to USA Rugby filing for Chapter 11 bankruptcy. The association say...

The COVID-19 pandemic has led to USA Rugby filing for Chapter 11 bankruptcy.

The association say they've taken the step as the suspension of rugby in the United States leaves them facing "compounded and insurmountable financial constraints".

Just last week, World Rugby chairman Bill Beaumont conceded, "These are very difficult and entirely unprecedented times for society and sport.

"Our primary and immediate responsibility is to ensure the health and wellbeing of the global rugby community and to collectively support those in need."

The USA Rugby statement says World Rugby will supply a financial support package to help the association navigate their way through the bankruptcy process and beyond.

The men's and women's United States national teams will continue when rugby resumes after the COVID-19 pandemic.

The USA Rugby men's team are due to hosts Italy and the French Barbarians in July. The Eagles are slated to face Canada in Vancouver on October 30.

"This is the most challenging period this organisation has faced and all resolves were never taken lightly in coming to this determination,” said USA Rugby Chair, Barbara O’Brien.

"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."

The loss of revenues and sponsorships associated with the shutdown have added to "a 2019 budgetary overspend". This left USA Rugby with no alternative but to file for bankruptcy.

The association say "significant staff and budget reductions were required" at their headquarters, adding, "The USA Rugby Headquarters will continue to operate on a condensed staffing model through the remainder of the restructure."

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