South America is being handed economic cuts from rugby’s global governing body. Ignacio Chans reports that World Rugby is cutting 14% of its budget to South America, this alone means adjustments will be made for Super Rugby Americas let alone test teams.
World Rugby’s cuts will not be limited to South America; indeed, ARN understands that cuts will be immediate and across the board, regardless of how well or badly managed the union is, whether they have a franchise or not.
The cuts come with World Rugby having announced it is investing between $250 and $270 million over the next five years investment in the USA. The high investments sees Tier 2 priorities clearly being limited rather than global as the recently RWC 2027 qualified USA prepares for the bigger picture of hosting Rugby World Cup 2031.
It means Sudamérica Rugby and members unions face financial challenges in 2026. World Rugby will scale back its partnership with the organization, forcing cuts on the highest-value and most money-making product, the professional franchise tournament: Super Rugby Americas.
The uncertainty comes with Super Rugby Americas 2026 close to welcoming a new team. Work is highly advanced for Litoral, centered in Rosario to join for the 2026 season. Litoral will be the fourth Argentina franchise and make Super Rugby Americas 2026 an eight team league. The franchise will be required to pay the Union Argentina de Rugby (UAR) a fee of approximately US$50,000.
Rosario rugby journalist Lisandro Olearo recently commented on the cuts coming from World Rugby and the existing and growing crisis. World Rugby already cut the Junior (u20) World Trophy and is ending the Rugby Sevens World Cup.
Chans notes that changes to u20’s and 7’s both directly affect Uruguay. Los Teros 7’s and Los Teritos have been fundamentals to the growth of the national Men’s team, Los Teros over the course of the past decade.
A 14% cut means approximately US$300,000 less in 2026 compared to in the years 2024 and 2024. Moreover, it is not the first cut and is less than a third of the cuts made in the last two years, when contributions fell by approximately US$1 million compared to 2003.
The figure roughly matches the budget of a Super Rugby Americas franchise during the six-month period the tournament lasts. In simple terms, this means that for a third consecutive year Sudamérica Rugby and Super Rugby Americas will beed to tighten belts.
Chans has also reported on the costs facing Chile to take-on Samoa in Rugby World Cup Qualifiers in Salt Lake City, Utah on September 20 and Vina del Mar, Chile on September 27. Los Cóndores’ travel costs are US$150,000, of which World Rugby contributes US$38,000. World Rugby covers the costs in the USA and the indebted Samoa Rugby Union pays virtually nothing.
The return match in Chile will see the hosts paying for all minus the US$15,000 that World Rugby contribute. Samoa’s stay in Chile alone will cost US$50,000. Rugby Chile is advertising the home match heavily and has tickets listed as sold out in the side-on seating areas.
