Yesterday the news rang out that PRO Rugby had effectively shut down operations, informing all players that their contracts were terminated. After numerous media outlets – this one included – ran headlines of PRO’s demise, PRO CEO Doug Schoninger surprisingly took to the social media channels to tell us that, in fact, PRO was ‘not dead. We are more alive than ever.’ This statement seemed at odds with the termination letter sent out earlier in the day, so Americas Rugby News asked Mr. Schoninger to explain the situation in his own words. Below is the complete transcript of the email exchange.
ARN: We understand you met with USA Rugby on the weekend to discuss, among other things, the future of PRO. Following these discussions, you sent a letter to all PRO players informing them of your decision to exercise the Voluntary Termination clause of their contract, subject to a deal potentially being struck with USAR. What specifically from your discussions with Dan led you to that decision?
DS: I met with Dan Payne (CEO) and Alex Magleby (GM, High Performance) on Friday. During and after the meeting it became 100% clear to me that USA Rugby had no intention of enforcing our rights as defined in our agreement. I have been discussing these issues with USA Rugby from July of this year. I tried to reach out to some of the USA Rugby board members but was unsuccessful in connecting with them.
ARN: If an agreement with USAR is not made within the 30 day notification period, what would your next course of action be?
DS: We are presently evaluating our options for 2017. We are committed to having a competition in 2017 and rehiring as many of our 2016 players as possible. Where and when that competition will take place in 2017 is to be determined.
ARN: On the PRO Rugby Facebook page you stated that USAR were ‘not honoring our agreement’. What part of the agreement do you believe they are not honoring in good faith?
DS: The major issue is over the enforcement of the exclusive nature of our agreement. There are other smaller issues but none that are material in nature.
ARN: Can you clarify (as best you can) the terms of your exclusivity agreement with USAR?
DS: I am not allowed to discuss as per USA Rugby, sorry.
ARN: Was the disagreement over exclusivity a length of contract issue or was the suggestion that USAR are intending to allow or move forward talks with other potential professional competitions?
DS: Same as above.
ARN: Sources have indicated to us that formal grievances have been submitted to USAR by PRO employees. Are you aware of these grievances and how do you respond to accusations that some players have not been paid – in some cases – in several months?
DS: I am aware of these grievances. Every PRO employee that has performed his duties and has not breached the agreement has been paid. The players that have filed grievances have all willingly breached their agreements that lead to their own termination of the agreement, as per the agreement.
ARN: Can you give an example of how a player might willingly breach their contract agreement?
DS: By playing for clubs that have not been previously approved, by moving out of the USA without prior approval, by playing another sport for a college or school, by not training as per a mandated training schedule, etc..
ARN: If PRO and USAR were to come to an agreement prior to said notification period, is it still your intention to run an eight team league in 2017, or has the closing of the San Francisco Rush altered your initial plans?
DS: As previously stated, we are evaluating our options for our 2017 season. Again, our dispute with USAR over the agreement has been in discussion since July and has already effected our planning for 2017.
ARN: Lastly, the American public clearly supported the inaugural PRO season in large numbers. What can fans expect to see differently in Season Two if it does in fact take place?
DS: Season Two represents a bridge year for us. Our goals were to make it a much better version of Season One, both on and off the field. Learning from Season One and applying those lessons to Season Two would let us establish a great base for a much more impactful Season Three; in teams of number of teams, size of venues, quality of players and coaches, and media and sponsorship opportunities.
DS: We believe, as you do, that PRO achieved its goal in Season One and are on the way to becoming the success I know rugby can be in the USA. Oddly enough, it is this success that has brought out many who wish to destroy our achievements as it does not fit into how they perceive the structure of rugby should be. To be clear, our mandate is to grow the game, give more opportunities to players and coaches and introduce more fans to the sport. I feel we achieved this in our first year and it is very sad that those at USAR do not recognize or value those achievements. I would ask you to ask USAR what their mandate is and how do they plan on accomplishing it? Does more of the same sound like a good plan to you? And with their reduced 2017 budget it sounds like it will be less than the same.