Rugby Federation United States is forced to declare bankruptcy amid the economic consequences of the pandemic coronavirus. The organization filed a bankruptcy petition under article allowing to reorganize and restructure their debts, and waiting for financial support from the International Rugby Board.
according to the statement of the organization, its financial problems were reinforced by the impact of the pandemic coronavirus in Rugby. The suspension of competition has led to a significant loss of income from membership fees, sponsorship and other sources.
“After extensive consultations with legal advisers, the Board of Directors and the Congress voted for a formal Declaration of bankruptcy as a result of complicated and insurmountable financial constraints. Filing for bankruptcy, backed by a robust action plan is the optimal strategy in these exceptional circumstances. This is the best platform for fast and efficient problem solving and creating a Foundation for future stability,” reads the statement of the Federation.
USA Rugby files Chapter 11; Agrees to support for continuation of reorganization.
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— USA Rugby (@USARugby) March 30, 2020
the pandemic is in the early stages of the events are cancelled around the world. A tournament is suspended or held without spectators, making them unprofitable.
