World Rugby revives talks to raise funds for US expansion, sources say

LONDON : Rugby union’s governing body World Rugby has revived talks to raise funds for growing the sport in the United States, three people familiar with the matter said.

Dublin-based WR, led by CEO Alan Gilpin, could use the funds raised to invest in the U.S. by creating a new league or investing in existing ones, the people said.

The governing body first explored options in 2021 including selling a stake in the World Cup’s commercial rights that would be used to fund other areas of the sport, Sky News reported at the time, but a deal never materialised.

The revival of talks would be a test of appetite for the sport in the U.S. as it builds towards hosting the 2031 men's World Cup and 2033 women's World Cup.

The quadrennial men's tournament was last year won by South Africa in France and is next scheduled to take place in Australia in 2027. It is by far the biggest generator of funds for the sport which turned professional in 1995.

France 2023 generated a 475 million-pound ($622 million)surplus for reinvestment in the game, with 300 million pounds directly invested into unions and regions, WR said.

Australia 2027 is projected to generate 550 million pounds and the 2031 event, the first Rugby World Cup held in the U.S., is projected to earn 770 million pounds, not taking into account the current investment process.

The sources, who spoke on condition of anonymity, cautioned that discussions are ongoing and may not lead to a transaction.

Private equity firms Providence and KKR have held talks about participating in the process, which is being handled by bankers at Jefferies, two of the people said.

The group is considering raising the funds by issuing debt, one source said.

Jefferies did not immediately respond to a request for