Rugby in crisis as unions engage in ‘unprecedented dialogue’

USA Rugby has filed for bankruptcy. The Australians are facing a black hole of more than $70 million. English rugby leaders have drawn up worst-case scenarios of an even bigger financial hit.

The coronavirus pandemic has left rugby on its knees over the past two weeks, with the prospect of more pain to come because of the uncertainty over whether leagues, lucrative tours and international competitions can resume or go ahead.

The chief executive of England’s Rugby Football Union, the world’s richest union, said Thursday there has been an “unprecedented amount of dialogue” between the sport’s leading countries during the outbreak that has shut down rugby.

“The relationship between the north and the south has probably never been better,” Bill Sweeney said.

Sweeney acknowledged that Australia might be in the weakest position of all the major unions.

After returning a net loss of more than $5.4 million for last year, the Australian Rugby Union could take a hit of more than 10 times that figure this year if Super Rugby does not start up again and there are no domestic test matches for the Wallabies, according to CEO Raelene Castle.

The ARU doesn’t even have a TV deal at present after refusing to take up an offer with Foxtel, its existing broadcaster.

“It’s in no one’s interest,” Sweeney said, “for Australia to get into even more serious difficulties.”

Sweeney suggested USA Rugby’s decision this week to file for bankruptcy was no surprise because the body was “struggling somewhat before the crisis.” through sponsorship pullback and losses from matches in the country in 2018.

World Rugby, the sport’s governing body, is talking with the Americans to see how they can sustain the game in what it sees as a key future market.