1000 Words 6 Videos And 1 Picture On USA Rugby's Current Crisis
1000 Words 6 Videos And 1 Picture On USA Rugby's Current Crisis
It’s very easy to get overwhelmed by the problems within USA Rugby, and maybe get a little bored with them, and we’d like to help you with that.
Bored? Please no. We don’t want you to be bored. Overwhelmed? Well, yes, there’s a lot to take in an analyze, but several have tried to find the most important issues at the heart of the matter. And if you don't want to wade through every word, check out these one-minute videos throughout the article. They can help.
Financial Crisis Is Here Says USA Rugby
The Problems Aren't New
USA Rugby’s financial problems started in 2017 and blossomed in 2018. They didn’t start in 2019. In fact, it was in 2018 that things really met difficulties. USA Rugby hosted South Africa vs Wales, committing to a large appearance fee for both teams. Then there was the Rugby World Cup Sevens, which enjoyed massive crowds, but lost money anyway.
You can see USA Rugby’s 2018 990 here>>
And the audited financial report here>>
But … here’s a screenshot from the 2018 990:
It shows USA Rugby paying out almost $3.6 million in hosting fees, marketing, and branding for the event. That seems to be a lot, especially when you consider that rugby-related media in the USA and Canada didn't see any of that. They were marketing overseas, of course, and in the Bay Area for general sports fans, but it's reasonable to question whether this was done effectively.
More RWC 7s Problems
In addition, according to sources, USA Rugby announced that the RWC 7s would be in San Francisco before they had secured hotel deals for hosting the 40 teams involved.
That can hit you very hard. With 40 teams plus staff for the days leading up to, and during, the tournament, a $25 increase in a hotel room price costs about $150,000. Hotels will raise ticket prices around major events, sometimes doubling or tripling room prices.
So a $125-a-night increase—not unreasonable to expect—is almost a million dollars. It all speaks to USA Rugby's inexperience running major events.
High Performance Costs
USA Rugby received $800,000 more in High Performance Grants in 2018 than it did in 2017. But the Men’s and Women’s National Teams increased spending by $1.8 million.
So it seems that no matter what comes in, money keeps going out. The shortfall has often been covered by donations, but those donors are losing patience. The shortfall also can be covered by membership dues. Those dues-payers are losing patience, as well.
Who’s Fault Is 2019?
The Men’s 15s Eagles overspent in 2018 because the player per diems were put temporarily off-books in order to keep the team on-budget during the middle of the year. But that expenditure was supposed to be brought back into the team’s budget later. It wasn’t. With the person whose idea that was already gone, others were blamed.
RuggaMatrix America: Where'd All The Green Go?
New Plan That's Not So New
A plan to restructure USA Rugby and instill more accountability over finances was submitted to the USA Rugby Board in 2018. The fact that USA Rugby announced a new and accelerated plan now does not recognize that they're not accelerating anything.
USAR Statement Skips Past Details: Sources
This video released on Twitter by USA Rugby and featuring Chair Barbara O'Brien, CEO Ross Young, and Boardmembers Phaidra Knight and Kevin Swiryn strongly implies that USA Rugby members are reluctant to support major change, when the opposite is true.
Some questions have come from the community following announcement of a reorganization.
— USA Rugby (@USARugby) December 19, 2019
A few representatives from the USA Rugby Board of Directors are here to address those questions. pic.twitter.com/Z8NZet22Eg
Knight says in this video that the adoption of a new organizational plan is not because of financial problems, but because that was part of the strategic plan. But she also says basically that High Performance is becoming a financial drain on resources that should go to community rugby. Then Young comes in with context that makes it seem like USA Rugby has been working toward this all 2019. Based on how little things changed in the operations of USA Rugby in 2019, it's difficult to see what progress was made.
But Knight is correct—as you can see below, the money we're talking about with regard to development, compared to major events or the national teams, is very small.
So What Now?
However it might be organized, USA Rugby is likely going to reduce dues, reduce the number of people working in the national office, and splinter National Teams, College, Club, Refs, and High School off to (mostly) run their own lives.
How? There are a couple of ways:
Or ...
What Does This Mean For The Player?
Your dues will likely not go up, but you're going to see, hopefully, better-run local organizations that aren't waiting for USA Rugby to forward money owed. A local region could get a six-figure boost because that region would retain more of the dues players pay.
Your liability insurance could change, and could be better, cheaper, or both, but most players won't notice.
Somebody still has to remain vigilant. If your constituency has a million dollars more to work with, you can bet someone is going to try to get that in his or her pocket.
