In a move that could become a blueprint for other national sports federations looking to increase funding, USA Rugby is launching a for-profit company aimed at maximizing revenues for a sport still searching for a foothold in the U.S.
The new company, which will be called Rugby International Marketing, or RIM, will own all the commercial and media rights for the U.S. national rugby teams and plans to launch a digital channel that will include 24/7 coverage of rugby matches and related programming. The company has signed a partnership agreement with England’s Rugby Football Union, which is buying an equity stake in RIM for an unspecified amount of cash and is expected to allow the over-the-top USA Rugby Internet channel to show archived matches from England.
Nigel Melville, the CEO of USA Rugby, said the deal will allow the federation to grow significantly its annual revenues, which now stand at about $15 million, a fraction of what to top national rugby federations have at their disposal.
“Other rugby federations get government funding and other forms of support that we don’t, so we have make our business much more active commercially and digitally,†Melville said. “We want to make sure that rugby is more visible for people here.â€
For England’s RFU, one of the world’s richest federations, the U.S. market represents a massive growth opportunity for rugby, just as it did for soccer 30 years ago. [/QUOTE
