USA Rugby has officially filed for bankruptcy as the federation’s financial woes have worsened under the pressure of the Covid-19 pandemic.

Sport around the world has come to a virtual stanstill due to the coronavirus, with authorities banning large gatherings in order to halt the virus’ spread.

However, this has resulted in federations, unions and teams coming under extreme financial pressure as they have lost out on potential revenue generated by fixtures.

In a statement posted on its website, USA Rugby said it had filed for Chapter 11 bankruptcy, which allows financially struggling organisations to reorganise and restructure debt.

‘Existing financial challenges have been accelerated by the impact of the Covid-19 pandemic on rugby activities,’ the federation said.

‘Significant cost reductions and a financial support package from World Rugby will allow the Board, Congress and Governance Restructuring Group to continue under Union operation and control.

‘Through the Chapter 11 filing, significant staff and budget reductions were required at the National Office. The USA Rugby Headquarters will continue to operate on a condensed staffing model through the remainder of the restructure.

‘Further information on the accelerated reorganization, along with pertinent updates pertaining to the effects of COVID-19 will be regularly communicated on the USA Rugby website and social media channels.’

USA Rugby is not the only federation to be affected as the English RFU, New Zealand Rugby and Rugby Australia have all also announced significant pay cuts to survive this period.

Photo: Connie Hatfield / USA Rugby