Australian Rugby / RA

[Dctarget]

In related news USA Rugby filed for bankruptcy today.

 

[Jimmy_Crouch]

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.

 

[kiap]

USA Rugby would have filed for chapter 7 (goodnight nurse) if WR (World Rugby), who initially refused them assistance, weren't worried about loan write offs.

https://www.goffrugbyreport.com/news/usa-rgby-gets-lifeline-chapter-11-vote-come

=>

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.

 

[Braveheart81]

USA Rugby would have filed for chapter 7

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.

 

[kiap]

They have filed for Chapter 11 protection.

Subsequent to WR (World Rugby) putting some air in to stop their previous loans being written off => as per the article.

 

[kiap]

Was the last option available to USAR, given their insurance coverage for its directors personal liability only ran to March 31

 

[RugbyReg]

75% gone:

Rugby Australia has today made the toughest decision in the game’s history which will see 75% of its workforce stood down from April 1 through June 30, while remaining staff have been offered significant salary reductions or reduced hours as a result of the global Coronavirus (COVID-19) health crisis.

Following the suspension of the Vodafone Super Rugby season after just 7 rounds as a result of Government-imposed travel restrictions, Rugby Australia also suspended its plans (until at least May 1) to launch a five-team domestic competition given the advice of the Government’s health experts.

The game is projecting a worst-case scenario of up to $120m million loss in revenue should the Super Rugby season and the entire Wallabies domestic Test calendar be cancelled as a result of the virus.

Rugby Australia Chief Executive, Raelene Castle said: “Today we have had to deliver the hardest news imaginable to our incredible, hard-working and passionate staff, that many of them will be stood down for a three-month period so that the game can survive this unprecedented crisis.

“We welcome the announcement from Prime Minister, Scott Morrison and Treasurer, Josh Frydenberg yesterday regarding the Job Keeper payment and we will work closely with all our staff to ensure they can access whatever government support is available over the coming months.

“Since the suspension of our proposed domestic Super Rugby competition, we have been working to understand both the immediate and long-term financial implications for the game as a result of the suspension of the competition, and potential further loss of revenue-generating content as we look ahead to the international season.

“Our extensive modelling shows that as a code, we could lose up to $120 million in revenue should it not be possible for any Rugby to be played in 2020. Of course, that is the worst case scenario, and we are very hopeful that we can recommence the Super Rugby season and domestic Wallabies Test matches at some point this year.

“The measures we will implement from April 1, although extremely painful, are necessary to ensure the sport remains financially viable and to ensure that we are able to come out the other side of this global crisis, fully-operational and ready to throw everything into the rebuild. It is our priority to keep all of our valued team connected and engaged through this period.

“We shared with the Rugby Union Players Association today the breadth of our cost-cutting including the standing down of 75% of our staff. We will work closely with RUPA to reach an agreement which is appropriate given this unprecedented situation.

“We remain in close dialogue with World Rugby and the Australian Government around potential support for our game and are working side-by-side with our Member Unions with their State and Territory Governments to unlock some additional potential support to ensure, first and foremost, that we can continue to run our community Rugby competitions after this Coronavirus issue has finally abated.

“Not only have our Super Rugby organisations made deep sacrifices, our smaller State and Territory-based Unions that are largely volunteer-run have also made significant contributions to ensure the game can go on.

“I want to pay tribute to each and every member of staff across our Rugby organisations and once again stress that once we get through this crisis, and we will, Rugby will be back stronger than ever. All staff on stand down will have continued access to Rugby Australia support services during this time.”

Rugby Australia Chief Executive, Raelene Castle has taken a 50% salary reduction and remaining Executive staff across the game at least a 30% salary reduction. All Rugby Australia Board Directors have agreed to defer their Director’s fees.

 

[RugbyReg]

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.

 

[Finsbury Girl]

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.

 

[TSR]

Very sad day. Whatever our thoughts on the admin these are all people with there own families and bills to pay.

 

[Dark Shark]

75% gone:

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.

 

[dru]

Tough times for everyone in pro rugby. Best thoughts and wishes to all of them.

 

[Crashy]

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.

 

[Rugbynutter39]

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

 

[formerflanker]

75% gone:

Thanks for posting that RR.
I was going to "like" it but quickly realised that would be insensitive at this time!

 

[formerflanker]

I do not think RUPA will come out today and say they will also support 75% of Players being stood down.

Surely with no rugby being played, all players will be stood down on a minimal percentage of their salary. Or no salary.

 

[Adam84]

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.

 

[liquor box]

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.

 

[TSR]

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.

Jobs retained thanks to the government subsidy available

 

[Mr Wobbly]

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.

Already happened in Vic. Here's an extract from an email from the club, received yesterday.

As part of an integrated austerity program led by RA and implemented by each Australian Super Rugby club, all of our staff have today been informed that they will either be temporarily stood down or continue with reduced workloads and commensurate pay reductions until at least 1 July 2020.