USA Rugby has been financially bankrupt from last few years now. In the last World Cup in Japan, they have spent a lot of money and they messed up in Sevens San Francisco World Cup as well.
When all these things did not go well for U.S. Rugby, United World Sports has sued U.S. Rugby for $40 million.
They claimed that USA rugby has conspired with World Rugby to come to an agreement where UWS would be the host company for the Men’s Seven world series stop in the USA. United World sports ran 7 Tournaments in USA and Rugby is one of them.
UWS is running seven series in the USA from last 13 years from 2007 to 2019. After 2019 tournament was over, World Rugby did not renew the contract with UWS. Because of this situation, AEG has taken ahead of the Tournament this year and staging in Los Angelo’s after March.
After a lot of arguments, World Rugby has been removed from the Lawsuit, and the two-opposition party could not able to settle the dispute and it comes to end with the arbitration. USA Rugby has to pay United World Sports $200,000 to satisfy all the claims by them.
UWS has been now ceased to do any business and never going to get $40 million. To get the money they have to come up with some solid proofs against them. They will produce and demonstrate evidence of proof and will even try other ways to get their money.
Since USA Rugby is already bankrupt $40 million was a huge liability on their head. But since they have seen settled through arbitration their financial situation will be monitored now.
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