US Venture gets RFU Investment

The stakes in the battle for the American rugby market just got a little bit higher as the Rugby Football Union is set to announce that they have become a minority stakeholder in Rugby International Marketing (RIM). RIM is the for-profit entity created by USA Rugby to stage events in the USA and pursue commercial ventures.

Chief amongst the events that RIM is set to back is the USA’s hosting of the 2018 Rugby Sevens World Cup in San Francisco, California. However, not far behind that initiative is the long awaited launch of a professional rugby competition in the United States. RIM is rumored to be in advanced stages in regards to getting a competition off of the ground.

“Rugby International Marketing will help us drive commercial revenues that will help support a professional league amongst other things,” said USA Rugby CEO Nigel Melville to Americas Rugby News. “I am working with a group that have the financial ability to support a League and Rugby International Marketing will help them deliver it commercially.”

Aside from those two very ambitious initiatives, discussions have been ongoing for some time about the English Premiership staging matches in the United States. London Irish have been linked to a multi-year deal that would see them play a home match in the USA near St. Patrick’s Day each of the next three years.

While monetary details of the RFU’s investment have not been made public, RFU Chief Commercial Officer, soon to be RIM Board Member, Sophie Goldschmidt stated to The Telegraph that the RFU would make their money back in a few years and enjoy very good returns in the mid-term.

Over the years, most major rugby playing nations have toyed with the idea of breaking into the American market. SANZAR and the New Zealand Rugby Union have gone on record multiple times about their interest in the United States as a growth market for the sport. During the latest round of Super Rugby expansion talks, it was not uncommon for the United States to come up in talks. Premier Rugby Ltd, operators of the Aviva Premiership, have also been extremely interested in the potential of the US sports market.

Despite all of the interest, the step forward by the RFU marks the first significant commercial investment in the USA from a large rugby union. Whether this marks the dawn of an exciting new era or something different entirely remains to be seen. With the details on the deal shrouded, questions remain as to how much the RFU will benefit from the success of RIM and rugby in the United States. The level of influence and control the RFU may now hold over future commercial prospects in the USA is another major question and potential concern.

This new collaboration is one that fans and people with interest in American rugby should watch closely.

 

About Americas Rugby News

Formally created in June 2015, this website's goal is to increase media exposure of the Tier 2 rugby nations, and create a hub with a focus on the stories of rugby in the Americas - North, Central and South.

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