Discussion in 'Rugby Discussion' started by Dave Beat, May 21, 2013.
In related news USA Rugby filed for bankruptcy today.
Filing for chapter 11 bankruptcy in the US is substantially different to declaring bankruptcy in Australia.
USA Rugby would have filed for chapter 7 (goodnight nurse) if WR, who initially refused them assistance, weren't worried about loan write offs.
World Rugby is rightly concerned that a complete dissolution of USA Rugby would mean that any previous loans would not be repaid. World Rugby is also concerned—understandably—that a big old check to USA Rugby solves nothing and teaches no one any lessons.
So … World Rugby has reportedly committed to a funding plan for USA Rugby to keep the National Governing Body afloat over the course of a few months.
This funding doesn’t avoid bankruptcy; it just makes Chapter 11 bankruptcy (court-approved reorganization and time to arrange debt payment) a possibility.
Without any funding and without even the semblance of a plan going forward, USA Rugby would have had to file Chapter 7, which would mean the organization would essentially cease to exist.
They have filed for Chapter 11 protection.
Subsequent to WR putting some air in to stop their previous loans being written off => as per the article.
Was the last option available to USAR, given their insurance coverage for its directors personal liability only ran to March 31
QRU press conference this arvo with the CEO. A good chance the same will happen there and I can only assume other states/teams will follow.
Well at least at the professional level we will be forced to cut our cloth accordingly.
We are lucky that the vast majority of rugby is actually run by extremely hard working men and women for nothing but love of the game. These foundations worldwide should ensure the game survives and can rebuild. It'll be bloody tough.
Very sad day. Whatever our thoughts on the admin these are all people with there own families and bills to pay.
That makes RUPA’s press release yesterday, saying that “if Execs are taking a 30% to 50% pay cut, then that will be good enough for the Players as well” look puerile. I do not think RUPA will come out today and say they will also support 75% of Players being stood down.
Tough times for everyone in pro rugby. Best thoughts and wishes to all of them.
Very sad times. I often wonder how I would respond if 6 months ago I was allowed 1 hour to read the future press on march 31, 2020. Not sure I'd get off the floor.
What we are going through now is simply off the chart but we will get through it and support the game in numbers when it returns.
And probably supporting a domestic pro competition which actually could turn out a long term silver lining for rugby in this country
Thanks for posting that RR.
I was going to "like" it but quickly realised that would be insensitive at this time!
Surely with no rugby being played, all players will be stood down on a minimal percentage of their salary. Or no salary.
Dark days for professional sport, fee sorry for any involved in the industry, not just the players but all the administrative and back office staff.
I think the only viable option for the next few years may be an Australian only conference plus Japan that includes the Force. Home and away then a four team finals series.
If we are lucky enough to get NZ to accept an offer then i would want a "super bowl" of the top Australian Team v the top NZ team for trans Tasman supremacy.
This may lead to the formation of a trans Tasman comp in about ten years time that both countries can be interested in.
Jobs retained thanks to the government subsidy available
Already happened in Vic. Here's an extract from an email from the club, received yesterday.
Separate names with a comma.