Talking Rugby: USA Rugby at Crossroads

I write this with a heavy heart. It’s been a long time since I contributed an opinion piece for Americas Rugby News. I certainly wished that I had taken Paul up on writing a piece about the storied career of Todd Clever as he retired from International duty. Instead I have chose to attempt to address the volcano that is nearing eruption with USA Rugby dead in it’s path.

Let’s be very honest. Anyone who has poured their heart into the sport of rugby in America knows that something is wrong. Perhaps, people that just show up on Saturday to play and drink beers think that all is wonderful. Sometimes I wish that I was one of those people. Because the cold, hard truth is that not only is something wrong with USA Rugby, but it has been going on for a long time. The keyboard warriors have been typing away on various platforms voicing their displeasure, for one reason or another, for years. They were always met by a USA Rugby apologist saying things weren’t really that bad or that their concerns were valid. I know that there were times, while I was still writing frequently, that I often hopped back and forth over that fence of being critical of our union and giving them a pat on the back. It wasn’t all bad? Was it?

We, as a rugby community, have had our heads in the sand and the really sad part about it all is that it has taken some very serious missteps for people to start to take notice. Our union is massively in debt, about to face litigation over the PRO mess, and facing unprecedented unrest from their constituents. The fallout over PRO Rugby is embarrassing as the contract that was pushed through our leaders is questionable to even the untrained eye. I have seen it and I was shocked by the number of red flags in it. Even then, the rugby community is so forgiving and filled with hope that when the Strategy 2020 documents came out we were ready to “turn the corner” and move onto brighter horizons. Back when I first started writing about rugby over ten years ago, I feel like I used that same phrase a lot. I mean A LOT. USA Rugby seemed to always be “turning a corner”. Funny part is that if you turn enough corners, eventually you end up back where you began. Which is exactly where we are after the last ten or so years.

Before I go further, I want to state that I do believe in our CEO Dan Payne. He has been thrown into a mess that has been 10 years in the making and left with little power to correct it. He is passionate and has shown the desire to make changes in USA Rugby. The problem is that the entity may be broken to the point that no amount of passion can get past some of the obstacles that are in his way.

There is no questioning the fact that USA Rugby is at a crossroads. We are facing a seminal moment in our history. The question is will the members of USA Rugby take back the union or will we put our heads back into the sand? There are people out there leading this charge that deserve mention. Former Eagle Tony Ridnell has been extremely vocal in his concerns about many aspects of how USA Rugby is being run. It has rattled some cages and that is a good thing. To take it another step he has also raised his hand and stepped up to the plate to help make change. I support his efforts 100% and it is time that we had more people involved at USA Rugby that understand that the members aren’t there just to generate revenue for the union. We are stakeholders in USA Rugby, so every misstep and mistake made by our leaders needs to be held accountable. Tony is on a mission to fix the issues with USA Rugby. A rudder for a ship that lacks direction. Whether they give him the chance is the question. Their choice may decide whether we avoid going down a much darker path.

Speaking of…

Recently, Michael Fealey filed a formal grievance against USA Rugby. The grievance is reportedly being revised, but its claims against USA Rugby are staggering and cover a span of multiple years. The grievance includes claims of gross negligence, self dealing, misconduct, and a myriad of other issues. All questions that others have brought up over the years only to be called conspiracy theories by apologists. If proven, the grievance could destroy USA Rugby as we know it.

There are days that I wonder if that isn’t the best solution. Burn it down to the ground. Start over with a clean slate. Return the union to it’s members where it belongs. Then perhaps, we’ll change the name of our national teams to the Phoenix as a new USA Rugby rises from the ashes. Then, of course, there is the part of me that wants to see the changes made to USA Rugby before we reach this point. Either way, the time for change is now. Not in another 5-10 years when we can hand these problems off to another generation. Let’s bite the bullet and fix it now for the sake of future generations.

Now it’s your turn members of USA Rugby. Educate yourselves on the topics at hand. Draw your line in the sand. Or not.

For your reference, here is the first draft of the grievance filed by Michael Fealey.

Dear Sirs,

It is with a heavy heart that I write to you today in this manner. My conscience sadly, dictates that I must speak out. I am writing to you today to file a formal grievance with the Chairman of the Board and the Chief Executive of the Union, as per Union by-laws, stating my grievance(s) and I await your timely responses.
My grievance(s) are numerous and span several iterations of the Board, with differing members, and two different Chief Executives. They are listed below in what I hope is appropriate order based on a timeline ending today, July 10th, 2017 and beginning some years before.

1. Conflict of Interest (in Hosting the Sevens Rugby World Cup).
The Chairman of the Board, whilst not Chairman at the time has business interests in the hosting of the Sevens Rugby World Cup 2018. Mr. Chang joined the Board of Directors in 2012. In 2014 USA Rugby announced that it would bid to host the Sevens Rugby World Cup using stadiums owned by the now Chairman of the Board, Mr. Chang. Mr. Chang is profiting from business decisions he has direct influence and control over due to his position on the Board of Directors. In contravention of USA Rugby By-Law Article (V) Section 5.1

2. Gross Negligence and Failure in Duty of Loyalty and Duty of Care to the Union (of former CEO and the Board) in creation of Rugby International Marketing (RIM) and its subsidiaries.
The former CEO and the Board at the time did knowingly strip USA rugby of all its commercial rights in return for cents on the dollar of future revenue when prior to said creation, the Union owned 100% of its rights. In contravention of USA Rugby By-Laws Article (V), Section 5.1. (e).

3. Gross Negligence and Failure in Duty of Care (of former CEO and the Board) to act in the best interests of the Union in selling equity in RIM for local currency as opposed to US dollar. A decision which, after the Brexit vote and corresponding currency fluctuation cost the Union hundreds of thousands of dollars. In contravention of USA Rugby By-Law Article (V) Section 5.1 (f)

4. Misconduct and Collusion (of former CEO and the Board) in refusal of sanction of the NRFL game to be played in Philadelphia on grounds of player safety. Those grounds were tenuous at best but the announcement of the PRO Rugby sanction that followed shortly clearly outlines the intentions of the Board to manipulate the grounds for which professional rugby would operate in their favor, despite their Mission and Role not pertaining to Professional Sport as per Ted Stevens Act. In contravention of USA Rugby By-Law Article (ii) Section 2.2, Article (V) Section 5.1, Ted Stevens Act, Section 22052. Eligibility Requirements (5) (a)(1)

5. Gross Negligence and Failure in Duty of Care (of former CEO and the Board) in not seeking proper legal counsel with regards to the Sanctioning of PRO Rugby and therefore exposing the Union to potential Anti-Trust civil and criminal law suits. In contravention of USA Rugby By-Law Article (V) Section 5.1

6. Gross Misconduct in signing PRO Rugby Contract and attempted coercion of monopolizing the league as the players’ agents and exposing the Union to potential Anti-Trust civil and criminal law suits. In contravention of USA Rugby By-Law Article (V) Section 5.1

7. Failing in Duty of Care to members when it became apparent that the owner of said league was abusing our members (his players) services and bringing the game into disrepute. In contravention of USA Rugby By-Law Article (ii) Section 2.2 (i)

8. Conspiracy and Collusion, Gross misconduct and Failure in Duty of Care and Failure in Duty of Loyalty to members in allowing the Major Rugby Championship/Major League Rugby to proceed unsanctioned, recognized or organized by USA Rugby. In contravention of USA Rugby By-Law Article (ii) Section 2.2 (i) World Rugby By-Law Section 3, Regulation 2.1.2

9. The legal position, due to said contract above is clear – USA rugby cannot sanction another league. World Rugby by-laws are clear in that all matches must be organized, recognized, or sanctioned by the NGB unless prior written consent is given by both Unions (both unions being the home union – in this case USA Rugby, and World Rugby, the International Governing Body of Rugby). In contravention of USA Rugby By-Law Article (V) Section 5.1, World Rugby By-Law Section 3, Regulation 2.1.2

USA Rugby was not at liberty to provide said permission due to it’s poor judgement in said contract with PRO Rugby. As members of USA Rugby those teams involved are also party to the agreement and therefore subject to its requirements.

As members of USA Rugby and World Rugby it is assumed, legally, that all members have prior knowledge of its bylaws and requirements to adhere to those bylaws. Ignorance is not, in this matter a defense, nor, given the CEO and Chairman’s roles pertaining to governing the NGB, should it be one. World Rugby By-Law 7 Binding Agreement, World Rugby By-Laws Section 3, Regulation 2.1.1

The CEO has privately encouraged Major League Rugby to proceed whilst publicly proclaiming that he wishes to cooperate as per PRO Rugby contract, this is both disingenuous and immoral. The CEO, National Office Staff and MRC/MLR teams are knowingly infringing or allowing infringement on the rights set out in PRO Rugby contract to the owner of the league on the basis that said owner was not good for the game. Nevertheless, we have a contract that we are legally bound by – there was no room to maneuver, the decision was laid out in the contract for us. We are now again open to law suits that could amount to millions of dollars that we, the members will pay. In contravention of USA Rugby By-Law Article (V) Section 5.1 (e)

10. Financial mismanagement – No financial reserves, operating a deficit budget for numerous years. In contravention of USA Rugby By-Law Article (V) Section 5.1 (b), Ted Stevens Act, Section 22052, Eligibility Requirements (a) (2).

11. Conflict of Interest, Financial misconduct – Donations made to USA Rugby Trust by USA Rugby partners, shortly before extensions of deals with said partnerships are announced. USA Rugby staff member salaries paid for by interest groups- Atavus currently pays three National Office staff members’ salaries. In contravention of USA Rugby By-Law Article (V) Section 5.1, Ted Stevens Act, Section 22052 (5) (a) and (c)

12. Gross Misconduct, False advertising. USA Rugby sells coaching courses to its membership that are below standard and unrecognized by World Rugby (Level 300). Player Safety is paramount and yet we are failing to adequately educate our coaching population to a standard that is found acceptable elsewhere in the world. In contravention of USA Rugby By-Law Article (ii) Section 2.2 (g)

13. Financial mismanagement and gross misconduct. The perpetual inability of High Performance Department to remain within or under budget. In contravention of USA Rugby By-Law Article (V) Section 5.1 (b), Ted Stevens Act, Section 22052, Eligibility Requirements (a) (2).

14. Failure in Duty of Care, Misconduct and gross negligence; the complete absence of a strategic plan for almost an entire decade. In contravention of USA Rugby By-Law Article (V) Section 5.1 (a)

15. Ineligible Status as a National Governing Body under USOC By Laws due to financial mismanagement, operational budget deficits, poor business decisions As per Ted Stevens Act, Section 22052, Eligibility Requirements (a) (2).

To the members that may wish to add their names to this Letter of Grievance, as I said at the beginning of my letter, it is with great sadness that I am writing this letter regarding the state of our Union, but I cannot help but feel such a letter is long overdue. Members have waged war in the Court of Public Opinion over many of these issues, the right and wrongs of all discussed and discussed and little to no resolution has been forthcoming.

To the CEO and Chairman, you both have great responsibilities, as the shepherds of our young game here in the US. There is the weight of History, the memory, and the work of those that came before that keeps us grounded. Their mission guides us. There are the struggles of the present and issues that whilst large, are not insurmountable. Lastly there is the future that awaits us. You have failed to live up to those responsibilities and at every opportunity over the last two years to rectify these failings have chosen to act, detrimental to the membership, in ways that have been purely for the benefit of the National office or for outside organizations under the guise of partnerships. The purpose of a union is to serve its membership.

I am not writing this letter of grievance as simple vendetta, because I wish to see anyone lose their job or position, we have no other option but to proceed down this road. Change, so desperately needed, is not forthcoming. This is about acknowledging the mistakes of our past, and our present for that matter and correcting them before they destroy our future. This is about making clear our new beginnings.

We are all allowed to make mistakes, we are all human, but to not admit or acknowledge them only continues the cycle of insanity. We are in serious peril because of decisions that were made before us and by us. We cannot expect others to correct the mistakes that have been made on our behalf. We must deal with them ourselves and the first step to solving a problem is admitting that we have one.

To the Chairman, CEO and Men and Women of the Board, of Congress and the National Office, it is time to own up and stand aside so that we can repair the damage and rebuild. It is time for us to move forward.

Upon reading this you must know that we are at Ground Zero. After today, there will be a New USA Rugby or there will be a New Union.

Resolution of Grievance
1. Immediate resignation of The Chairman of the Board, The Board of Directors, CEO and National Office staff involved or implicated in any of the above listed grievances.
2. Immediate shut down and restructuring of the USA Rugby Congress following by-law amendments restricting conflicts of interest at the Congressional Level, not just Board and National Office Level.
3. Establishing an emergency council to take control of day to day operations and any temporary hires as necessary until permanent replacements for staff can be found. To repopulate the Board of Directors, to reorganize and empower the USA Rugby Congress subject to any amendments and instituting a Conflict of Interest Policy for All Directors, Executives, Congressmen and Congresswomen, Staff and Coaches.
4. Development of a Strategic Plan and Business Plan to be orchestrated by the emergency council.

Michael Fealey