MSK Zilina and USA Rugby bankrupt due to Coronavirus pandemic

BOTH first division Slovak team, MSK Zilina, and USA Rugby have both filed for bankruptcy in the wake of the coronavirus.

It is the first time that a sporting club and sporting organisation has had to file for bankruptcy due to the coronavirus.

MSK Zilina, who were champions in 2017 and reached the Champions League group stage in 2010, had already finished the main round in second place.

The club budget is mainly run on transfer income, and after players refused to reduce their wage by 80%, the club filed for bankruptcy.

MSK Zilina stadium

As a result the club was placed in insolvency administration and have terminated the contracts of 17 players. The players denied though that they had any knowledge that the club would go into bankruptcy if they refused the wage cut.

USA rugby have filed for bankruptcy after the board of USA rugby concluded that it could not carry with the current financial constraints, despite the men’s team competing in the Rugby World Cup less than six months ago.

It means that USA Rugby will be restructured under the supervision of World Rugby.

USA v Australia
Pictures: Wikipedia

Despite the financial disaster for USA Rugby, the men’s and women’s senior national teams will be allowed to compete as normal when the coronavirus pandemic has ended.

However, the situation for MSK Zilina is more bleak, with the club having to finish the season with just their youth team.