It’s been a bumpy road as many flock to reorganize USA Rugby, and it’s not going to get much smoother.

Several USA Rugby employees have been let go, and that’s an indication that work is afoot to cut costs and adjust to whatever will happen next. (And of course at the same time, those left in the organization are trying to do their jobs, and often the jobs of those who have been let go.)

Meanwhile, there’s dissatisfaction in the Congress as the new organizational plan isn’t winning fans everywhere.

According to some sources, it’s all moving too quickly. There needs to be a corporate reorganization specialist, feel some in Congress. Or, according to other sources, it's moving too slowly.

Members of USA Rugby Partners and the Golden Eagles, who have put millions of dollars into the USA national team effort, have been spearheading the call for change and it has been Jon Bobbett who submitted a detailed schedule for reorganization.

But Bobbett and USA Rugby Partners is pulling back as members of the Board and members of Congress have looked to take the plan in a new direction.

The ones driving the reorganization have voiced their distress that the Board, in their mind, does not appreciate the full extent of USA Rugby’s financial crisis. The huge changes we all heard would happen look to be far less drastic now.

The Timeline

According to Bobbet’s initial timeline, January 31, this Friday, is the date that the following will be released: a draft of the Bylaw changes, a draft of Community Agreements (basically how USA Rugby might work with various constituencies such as Youth/High School and the College game), and a Financial Proforma of Reorganization.

But sources within Congress say there’s a disconnect among those involved as to what the priorities are. Is it all about the national teams? Some say it is and shouldn’t be. Are the various constituencies ready to handle all of their own affairs? Some Congress members fear not. One suggested that club organizations will split into several factions.

And the plan to have these constituencies to pay USA Rugby dues while basically running their own affairs has some nervous. Essentially, once you set a group free, what is the incentive to pay dues?

“We are still trying to wrap our heads around it all at this points,” said one Congress member.

Insurance A Massive Question

Then there’s insurance. Liability insurance is not an exciting topic, but it’s a huge part of the USA Rugby structure. One of the main reasons USA Rugby can make players pay dues is the liability insurance coverage.

However, not all insured players are equal. According to some sources, youth and high school players are actually cheaper to insure because Federal Law says they must have health insurance. Therefore, a player who is injured has to have health coverage and that limits the liability insurance company’s potential payout. As a result, the insurance premium for younger players is less than it is for adults.

There are similar differences between college players and adult players. As one observer told Goff Rugby Report, “you don’t always get economies of scale.”

There are some insurance experts within USA Rugby who should be able to address this. It’s worth noting that USA Rugby Board Member and former USA Men’s 7s captain, Kevin Swiryn, works for Kibble & Prentice, which is the current USA Rugby liability insurance carrier. Swiryn is going to be one of the two international athletes on the reorganization committee, and so any questions about USA Rugby’s insurance plan should be answered without too much delay.

What’s Next?

In February, the Congress and Board will meet via conference call to discuss changed bylaws and financial reorganization, and later in the month the final versions of those plans will be completed (the dates for these are February 15 for the conference call and February 22 for the completion, but don’t hold those dates as set in stone).

After those final versions are completed, the Congress and Board are supposed to ratify them, and then in March the Reorganization Task Force is set to sit. 

What Might We See?

Significant cuts in the USA Rugby National Office budget.

Competitions and stakeholders—Youth and High School, College Rugby, Small College Rugby, National Teams, Professional Leagues, Referees, Amateur Club Rugby, Referees—could well run more of their own lives and use dues money to do that.

Pushback from those organizations on how much in dues they should send to USA Rugby.

Organizations will take on their own insurance, own competition rules, and perhaps own coaching education.

A push to keep dues supporting national teams, which is something that rankles several in Congress.

As a logical progression we will see a privatization of national championships (see the Boys and Girls HS Nationals).

 

But it’s still not clear if there’s consensus on what direction to go.