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USA Rugby, United World Sports Reach Settlement In Lawsuit

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USA Rugby, United World Sports Reach Settlement In Lawsuit

Folau Niua looks for some space against South Africa at the 2017 USA 7s in Las Vegas. United World Sports ran the tournament from 2006 through 2019, with the last ten events in Las Vegas. David Barpal photo.

USA Rugby has settled its lawsuit with United World Sports.

United World Sports, the company that ran the USA 7s tournament in Las Vegas, and also the CRC, was suing USA Rugby for $40 million, claiming that USA Rugby conspired with World Rugby to weasel out of an agreement that UWS would be the host company for the Men’s Sevens World Series stop in the USA.

UWS ran the USA 7s for 13 years, from 2007 through 2019, but World Rugby did not renew its agreement with UWS after the 2019 tournament.

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AEG ended up taking the tournament on and staging it in Los Angeles this past March.

After a series of filings and arguments that saw World Rugby removed from the lawsuit, the two sides went to arbitration, and have no settled the dispute. USA Rugby will pay United World Sports $200,000 to satisfy all claims.

This puts to bed what could have been a much more ugly dispute between the organizations. UWS has ceased to do business, and was never going to get $40 million—to get that they’d have to demonstrate evidence of profits they never claimed to have—but the organization can come away with something.

For USA Rugby, this is solid news. The $40 million lawsuit was listed among the organization’s liabilities during its bankruptcy process. Now that it has been settled for half of one percent of that amount, USA Rugby’s financial situation just got a whole lot more predictable