For most rugby players and fans in the US, 2018 is like any most years: Spring playoffs have given way to sevens tournaments and Summer friendlies dominate the international test landscape.

But at the highest administrative levels, the competitive fun we all associate with the game is nowhere to be found. Rather, USA Rugby — the sports National Governing Body — is experiencing a slow-moving tsunami of bad news.

Some “highlights” include:

  • Former USA Rugby CEO Nigel Melville created numerous conflict of interest issues when he launched a for-profit entity (RIM) in 2015. RIM’s primary achievement is the creation of a streaming-video service. USA Rugby’s media rights were assigned to RIM, and Melville installed to the RIM board. This plan was approved by the USA Rugby board including Will Chang who would later become chairman.
  • Melville signs an exclusive sanctioning agreement between USA Rugby PRO Rugby for a professional rugby competition. The agreement is so poorly written and vague, even casual observers easily note many glaring problems.
  • Melville doubles down on his conflict of interest when he departs USA Rugby unexpectedly to take up a position with the Rugby Football Union, the UKs national governing body and investor in RIM.
  • PRO Rugby folds after it’s inaugural season. This appears to be largely due to numerous administrative issues within PRO itself, but USA Rugby does not appear to be working in good faith to support the league. Rumors abound that USA Rugby has been quietly discussing a replacement for PRO with existing rugby clubs.
  • The Major Rugby Championship (MRC) launches under the auspices of an amateur, definitely-not-professional rugby competition. As I noted at the time, if it walks like a duck and quacks like a duck, it’s probably a professional league and is thus in direct conflict with PRO Rugby’s exclusive sanction. MCR rebrands in 2018 as Major League Rugby (MLR), a fully professional rugby union competition.
  • Will Chang is instrumental in the successful bid by USA Rugby to host the Rugby Sevens World Cup. Chang reportedly has a financial interest in the proposed venue, which would be a clear conflict of interest.
  • Dan Payne, Nigel Melville’s replacement in as CEO, announces he is leaving his post unexpectedly forcing another CEO search.
  • Led by Stephen Lewis — former director of rugby and now vocal critic of PRO Rugby— the USA Rugby congress (the oversight body for USA Rugby) begins to actually provide oversight of the board, as well as RIM. Numerous resignations from the USA Rugby and RIM boards follow.
  • RIM reports millions of dollars in losses and it’s streaming service acquired by FLO Sports. This has a major impact on USA Rugby who are owed millions in licensing fees from RIM.
  • USA Rugby borrows millions of dollars from World Rugby to cover losses following a poorly-attended test match between Wales and South Africa in Washington, DC. Proceeds from the Sevens World Cup are hoped to be used to cover the loan.
  • Will Chang announces he will retire following the Rugby Sevens World Cup. When congress votes to recall him and other board members in May 2018 Chang resigns before the recall meeting.
  • Doug Schoninger and PRO Rugby sue USA Rugby and numerous individuals citing millions of dollars in lost capital.
  • While USA Rugby’s history is fraught with missteps, the last three years have clearly been exceptionally messy.

    Time to rebuild

    If you read the comments sections of the national rugby media or follow the discussions in social media circles you’ll see a lot of back-slapping and cheering. Many people are rightly pleased that the parties responsible for our current financial and legal woes are (finally) being taken to task for the negligence, incompetence, and/or malice required to generate such an impressive list of failures in such a short period of time.

    You’ll see lots of comments along the lines of “It’s time to rebuild.”

    However, I think it’s premature to presume that USA Rugby is out of the woods. There is still a very real risk that the sport falls into the hands of folks who have agendas unrelated to the well being of the sport.

    Two roads converge

    The clear and present danger for USA Rugby lies at the intersection of two trajectories in American rugby.

    The first, as described above, follows on from the high turnover rate of leadership positions at USA Rugby. With 5/7 board positions vacant or recently filled, there is no incumbent majority to ensure that new leaders adhere to World Rugby’s principles of Integrity, Passion, Solidarity, Discipline, and Respect.

    In other words, the current leadership vacuum creates an opportunity for motivated people to swoop in and very quickly amass a majority vote on the board.

    The second contributing factor is directly related to rugby professionalizing at all levels across the country. At no other time in the history of rugby in America has there been so much money invested in the sport.

    For example, PRO Rugby claims to have invested $6,000,000 in it’s first year. It’s pretty easy to imagine least this number for the first season of expenses in MLR. But the revenue side of the equation for professional rugby is also building as evidenced by CBS and ESPN acquiring MLR broadcasting rights. And of course broadcast rights for collegiate championships have been sold for a number of years already.

    On top of this, USA Rugby itself has been ramping up it’s use of for-profit entities such as the outsourcing of the elite development pathways to companies like Atavus, event management like USA Sevens, and of course RIM as described above.

    And internationally, it seems like every professional league on the planet is looking to expand to America with fast and loose business plans that can all be summarized by the tired “America is the sleeping giant of rugby” trope.

    Unfortunately, the combination of money and opportunity is bound to attract folks who are looking to line their pockets no matter the affect on the sport.

    How do stay on the right path

    So the current challenge for USA Rugby will be separating the opportunists from the real leaders our sport needs. We need to identify those without financial conflict of interest whose agenda is only making USA Rugby a world-class sport development company for amateurs and professionals alike.

    While it’s obvious that USA Rugby has needed new leadership on the board for sometime, who will vet these new leaders? USA Rugby Congress should perform such a role, but the body’s history of oversight does not build confidence. And this should not be surprising for a body made up entirely of volunteers with, generally speaking, full time jobs unrelated to the sport.

    While facing a leadership vacuum and with limited oversight mechanisms, Congress needs to look into hiring a dis-interested third party to help oversee our transition from our current banana republic to a trustworthy, effective, and professional sports organization. This would have to include a strong set of metrics by which to judge success, robust transparency (especially when it comes to finances), and accountability at all levels.

    I believe that our existing Congress can create the framework for this vetting process, but an independent third party needs to be hired to execute it.

    If done right, these new leaders will help guide USA Rugby through the current financial crisis and legal troubles, and come out the other side a stronger, more effective organization.

    Otherwise, in 5 years we’ll be in the middle of some other scandal(s) or worse-yet, USA Rugby will be co-opted by those looking to make a quick buck and our reputation domestically and abroad will have fallen even further than it is now.

    medium – Victor Drover.

One Response to USA Rugby: More a nightmare than the American Dream

  • 1

    Many problems to resolve, hopefully they can turn things around for the good of the game in the USA.

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