logo
‘Pretty dark right now': Major League Rugby reels as two more teams face funding crunch

‘Pretty dark right now': Major League Rugby reels as two more teams face funding crunch

The Guardian01-08-2025
Major League Rugby has endured a tough week with a merger and a withdrawal reducing the competition to nine teams, but the US men's professional rugby union competition could yet fall to just seven entrants if two more teams fail to raise new funds, the Guardian learned.
The merger of the San Diego Legion and RFC Los Angeles and the exit of the NOLA Gold were announced on Wednesday.
As fans digested that news, multiple league sources told the Guardian the Utah Warriors (like San Diego and NOLA a founding team in 2018) and the Miami Sharks, an expansion team in 2024, were seeking new funding. Sources differed on the likelihood of funding being secured.
Kimball Kjar, a former US Eagles scrum-half now Utah chief executive, said: 'Utah Warriors are a founding member of Major League Rugby. We set out to build something special, and we're still committed to that vision of creating top-end professional rugby in North America.
'We still believe in that vision, and we're working aggressively to continue on with supporting our partners in Major League Rugby.'
Describing a 'hefty financial lift', Kjar said Utah's 'ownership group has made it clear that they want to bring on additional partners and people that can continue to help accelerate and build and grow in the way that we intend to grow'.
Milagros Cubelli, the Miami CEO, could not be reached for comment.
In the MLR season just completed, the Warriors and Sharks reached the play-offs for the first time. In the Championship Game, in Providence, Rhode Island, the New England Free Jacks beat the Houston SaberCats for a third successive title.
Of the seven teams that kicked off MLR in 2018, only Houston, Utah and the twice-champion Seattle Seawolves remain. San Diego, three times finalists, are now part of the California Legion.
Asked if MLR could continue if shrunk back to seven teams, Commissioner Nic Benson told the Guardian: 'I think so. If you have the right seven teams, a strong core, my answer today is yes.'
Benson added: 'I think the reality of this is, this is hard. It's a labor of love and belief for a lot of people that we can build exceptional value in this sport. I still believe that, and I think a lot of the owners still believe that if we get this right, this is viable and will be good for the sport.'
The MLR Players Association said it was working with players affected by the closure and merger, 'to provide clarity on next steps and equitable solutions' and to 'ensure that players are properly taken care of'.
MLR is far from alone in facing financial headwinds: even in England, the Gallagher Premiership lost three teams in 2022-23 and now appears narrowly to have avoided reducing to nine entrants, a takeover saving Newcastle.
News from MLR may nonetheless prompt concern at World Rugby, less than two weeks after it staged an international doubleheader in Washington DC, heralding concerted investment in the run-up to US World Cups in 2031 (men) and 2033 (women).
Super Rugby (Australia, New Zealand and the Pacific), the United Rugby Championship (Wales, Ireland, Scotland, Italy and South Africa) and R360, a mooted transnational competition fronted by the former England center Mike Tindall, are all reported to be eyeing US ventures.
World Rugby did not respond to a request for comment on MLR from its chief executive, Alan Gilpin. But in DC in mid-July, Gilpin told the Guardian World Rugby had 'always believed … there needs to be a domestic professional league in the US that's growing and thriving [and] we want MLR to be that … that collection of owners, whether we think they're doing things right or wrong, are putting $70 million a year in, of their own money. That's not to be dismissed. And so we want MLR to be successful.
'But there's no doubt that both in terms of providing the best quality product to fans in this market and providing the best opportunities for players to progress in the US … some form of cross-border competition, whether that's Super Rugby Pacific, URC, or the other things that have been talked about, could be a really good addition.
'But it needs to be not killing [MLR] in the way that happens … So we've been in some of those conversations, which I think is positive again.'
World Rugby, Gilpin said, 'wants to be helpful, if it can help invest in the structure of the game … our conversation with anybody is, 'We welcome the investment but you've got to come in and work with us, with existing stakeholders, to make that sustainable.''
On Thursday, Kjar of Utah Warriors likened MLR to a successful US league that endured turbulent beginnings, telling the Guardian: 'MLR is really no different from where Major League Soccer was … in 2002 to 2003, where there's some some hard questions that are being asked, and certain teams and certain ownership groups are … able to provide the best answers to those questions and we feel pretty confident in our situation and what we're trying to do.
'We're above all confident in what MLR is, and what our partners have built together.''
Elsewhere, a current MLR team owner, speaking on condition of anonymity, backed Benson in saying the league could continue even if reduced to seven teams.
'The original number was seven,' the owner said, 'so the league functioned with seven. For some reason, people pick that as the demarcation line, like, 'Below eight probably means we're not viable.' We want to play.
'Yeah, there's a couple question marks. One of the teams that was a question mark feels they've got funding.
'What did Winston Churchill say? 'It's always darkest before dawn.' I mean, it's pretty dark right now. I will say there's a lot of introspection, and questioning.'
Martin Pengelly writes on Substack at The National Maul, on rugby in the US.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Stablecoin issuer Circle tops revenue estimate in first quarterly result since IPO
Stablecoin issuer Circle tops revenue estimate in first quarterly result since IPO

Reuters

time11 minutes ago

  • Reuters

Stablecoin issuer Circle tops revenue estimate in first quarterly result since IPO

Aug 12 (Reuters) - Stablecoin giant Circle (CRCL.N), opens new tab surpassed expectations for second-quarter revenue in its maiden quarterly results since going public, sending its shares up 5% on Tuesday. Higher circulation of its USDC stablecoin and stronger subscription services helped the New York-based company cement a rally that has pushed its stock to more than five times its initial public offering price. Stablecoins, which are digital tokens backed by low-risk assets such as the U.S. dollar or Treasuries, have drawn increasing investor attention, especially since the Genius Act was passed last month. The momentum has helped companies such as Circle, which issues USDC - the second-biggest stablecoin by market value after Tether. After "our IPO and the Genius Act, we're seeing an acceleration of interest, with major institutions all leaning in," Chief Financial Officer Jeremy Fox-Geen said in an interview. USDC in circulation grew 90% as of June 30, compared to a year earlier. Circle expects it to grow at a compounded annual rate of 40% through the years. The token was also being used for cross-border transactions, including remittances both between individuals and businesses, CEO Jeremy Allaire said. The company's revenue and reserve income grew 53% year-over-year to $658 million, thanks to a jump in the interest it earns from the cash and short-term investments backing its USDC stablecoins. Revenue from subscription and services also rose, Circle said. Analysts were expecting revenues of $644.7 million, according to estimates compiled by LSEG. The company's net loss was $482 million, primarily due to two non-cash charges related to its IPO, including costs for employee stock awards that vested when the company went public and a higher valuation of its convertible debt following a rise in its share price. Circle on Tuesday also said it will roll out Arc, a public blockchain designed specifically for stablecoin transactions, this fall as it pushes to build the technological infrastructure for digital payments. "They're really trying to become the pillar of stablecoins in the U.S.," said David Bartosiak, stock strategist at Zacks Investment Research. "Circle can use what they have already done to establish themselves as a trusted mover." However, the company was currently not looking to strike many deals, even as the massive jump in its stock price has given it the ability to do so, CEO Allaire said. "We're careful and deliberate. I don't think our strategy here is to go try and do big, complex acquisitions to throw additional business lines."

Daimler, Volvo, other truckmakers sue California to block emissions rules
Daimler, Volvo, other truckmakers sue California to block emissions rules

Reuters

time12 minutes ago

  • Reuters

Daimler, Volvo, other truckmakers sue California to block emissions rules

Aug 12 (Reuters) - Four major truckmakers, including Daimler ( opens new tab and Volvo, sued California to block the state from enforcing strict emissions standards that U.S. President Donald Trump declared void in June. Daimler, Volvo, Paccar (PCAR.O), opens new tab, and International Motors ( opens new tab, formerly Navistar, said they have been "caught in the crossfire" after Trump reversed waivers issued during the Biden administration that let California set its own standards. In a complaint filed on Monday, the truckmakers said Trump's rescinding U.S. Environmental Protection Agency approval of California's plan to boost zero-emission heavy-duty truck sales and reduce nitrogen oxide emissions preempted the state's enforcement. They said this included enforcing the Clean Truck Partnership, a 2023 program giving the truckmaking industry flexibility to meet emissions requirements while advancing California's goal of lowering emissions. The truckmakers said the regulatory uncertainty has caused irreparable harm because they cannot plan production in advance without knowing which vehicles they will be permitted to sell. Monday's complaint names the California Air Resources Board and Democratic Governor Gavin Newsom as defendants, and was filed in the federal court in Sacramento, the state's capital. Newsom's office and the board did not immediately respond on Tuesday to requests for comment. Trump's action was part of the Republicans' effort to curb California's power under the federal Clean Air Act to set tighter pollution limits than federal law requires, and Newsom's desire to promote electric vehicles as he fights climate change. California has received more than 100 waivers under the Clean Air Act since 1970. During his June signing of joint congressional resolutions, Trump also blocked California's effort to end sales of gasoline-only vehicles by 2035. The state is also suing to undo Trump's actions. The case is Daimler Truck North America LLC et al v. California Air Resources Board et al, U.S. District Court, Eastern District of California, No. 25-02255.

Do Kwon to plead guilty to US conspiracy, fraud charges in $40 billion crypto collapse
Do Kwon to plead guilty to US conspiracy, fraud charges in $40 billion crypto collapse

Reuters

time12 minutes ago

  • Reuters

Do Kwon to plead guilty to US conspiracy, fraud charges in $40 billion crypto collapse

NEW YORK, Aug 12 (Reuters) - Do Kwon, the South Korean cryptocurrency entrepreneur behind two digital currencies that lost an estimated $40 billion in 2022, is planning to plead guilty on Tuesday to two charges of conspiracy to defraud and wire fraud, a judge said at a U.S. court hearing. U.S. District Judge Paul Engelmayer is expected to ask Kwon, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, a series of questions before formally asking him to enter the plea. Kwon, 33, had pleaded not guilty in January to a nine-count indictment charging him with securities fraud, wire fraud, commodities fraud and money laundering conspiracy. He was accused of misleading investors in 2021 about TerraUSD, a so-called stablecoin designed to maintain a value of $1. Kwon allegedly told investors a computer algorithm known as "Terra Protocol" had restored the coin's value when it slipped below its peg in May 2021, when in fact he arranged for a high-frequency trading firm to secretly buy millions of dollars of the token to artificially prop up its price. Prosecutors with the Manhattan U.S. Attorney's office said that false claim and others drove retail and institutional investors to buy Terraform products and boost the value of Luna, a more traditional token developed by Kwon that fluctuated in value but was closely linked to TerraUSD, to $50 billion by the spring of 2022. Kwon had agreed in 2024 to pay an $80 million civil fine and be banned from crypto transactions as part of a $4.55 billion settlement that he and Terraform reached with the U.S. Securities and Exchange Commission. Kwon has been detained since his extradition from Montenegro late last year. He is one of several cryptocurrency moguls to face federal charges after a slump in digital token prices in 2022 prompted the collapse of a number of companies.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store