PRO Rugby is not coming to Canada. At least that is the current state of affairs. PRO Rugby made the depressing announcement earlier today on social media.

Due to last minute changes by @RugbyCanada @ProRugbyUSA will not have teams @Canada. Truly sad & disappointed 4 our Canadian fans & players — PRO Rugby (@ProRugbyUSA) November 2, 2016

The news comes much to the shock and dismay of the Canadian rugby community, who had openly campaigned for a team in the inaugural season and were all but certain to see involvement in the second. Whispers from the north indicated that at least one and possibly two sides would be entered, with PRO Rugby actively scouting locations in the Toronto area and at the AGM held in PEI over the weekend Rugby Canada openly admitted that the revenues that would be generated by a professional competition were sorely needed to bolster a weakening financial position.

On the rugby side of things Canada’s delay in finding a high performance competition has seen their domestic talent fall further behind, as evidenced by their white-wash in the recent Americas Pacific Challenge. A limited, fully amateur, Canadian Rugby Championship was barely supported by Rugby Canada in 2016 with some games not broadcast, and new coach Mark Anscombe has shown a clear willingness to select players from outside the so-called flagship domestic competition, much to the chagrin of CRC stakeholders.

Among several issues that have come to light are Rugby Canada’s desire for any incoming professional competition to adhere to the guidelines set forth by the Canadian Centre for Ethics in Sport. This is not new, and the problems stemming from that component have been at the crux of Rugby Canada’s reluctance to commit since day one. Ensuring that Canadian players were exposed to a proper high performance environment rather than simply being paid to practice was and is a high priority. Issues such as drug testing, nutrition, and standard training schedules were clearly marked as insufficient following the inaugural season but surely ones that could be resolved.

Another blockade was the single-payer system that league owner Doug Schoninger employed this season. According to sources, PRO Rugby did not use a third-party payroll service and instead Schoninger chose to write checks himself. This proved problematic with some players being paid late and there have been mixed reports of venues still owed money from PRO. In an interview with Rugby Today’s Pat Clifton, Schoninger admitted that he had not been entirely punctual with payments but that he saw that as a minor issue and one that would be resolved heading into season two.

The biggest obstacle appears to have been freedom to actively pursue alternative competition. The Guinness Pro 12 and Super Rugby have made no secret of their desire to expand into the North American market, and similarly Jim Dixon – General Manager of Rugby Canada – has expressed his interest in those competitions on frequent occasions. These conversations have been going on for years and whether there is any substance beyond introductory conversations for either of those possibilities remains to be seen, but there is no guarantee on the table and no possibility of either happening before 2018.

Schoninger’s concerns of the Pro 12 damaging his product have been heard by USA Rugby but he did not have an exclusive deal with them, though USA Rugby CEO Dan Payne recently expressed his continued support for the league. It appears as though Schoninger had assumed he would get one in Canada, and he admits that a clause preventing foreign competition was included in the sanctioning agreement.

@pintsandscrums Yes it is true. In order to make the required investment we need protection. Is that wrong? — PRO Rugby (@ProRugbyUSA) November 2, 2016

In a statement this afternoon Rugby Canada said that this clause was unacceptable and ultimately the primary deterrent to a deal being made. Rugby Canada CEO Allen Vansen says he is unwilling to sign off on any deal that precludes the opportunity to mingle with other potential suitors.

“Rugby Canada greatly appreciates the investment Mr. Schoninger and PRO Rugby are making in the development of professional Rugby in North America. However, we cannot limit and restrict the opportunities that established international professional rugby would bring to Canada for the benefit of our players and the growth of the game.

“We want to support Mr. Schoninger in his efforts to create a strong, successful competition in North America and remain committed to this goal. We are exercising every opportunity possible to strengthen and develop Canadian Rugby. We must act in the best interest of our players, members and stakeholders and any such agreement must be fair and reasonable for Rugby Canada. We cannot relinquish control over this important growth opportunity for our game to another organization.”

Further adding to the uncertainty and reluctance of Rugby Canada to make a deal is the confirmation today that venues for proposed expansion teams are far from being settled. Franchises in Chicago and New York were previously understood to be well into negotiations, with Boston now evidently in the mix. Further rumors suggested that the San Francisco team was in jeopardy and while Schoninger admits that they will be moving away from Boxer Stadium, he appears intent on the team staying in the area.

Any ideas for venues in @Chicago, @NewYork or @Boston? Venues are a problem. — PRO Rugby (@ProRugbyUSA) November 2, 2016

@ThisIsTxRugby @RugbyCanada @SFRushRugby We are currently looking for a new home for @SFRushRugby. Boxer was not ideal for players or fans — PRO Rugby (@ProRugbyUSA) November 2, 2016

While Schoninger has made a point of being more ‘transparent’ and forthcoming with fans, one does wonder whether such statements were best kept under wraps until more concrete leads were identified. It does nothing to assuage concerns that Schoninger’s style of business is ‘unprofessional’. That said, one must give credit where it is due and pulling off a very fan-friendly first season successfully – though the ride was bumpy at times – deserves a certain level of respect and perhaps some leeway.

By the same token we must not simply dismiss Rugby Canada’s role in the failure to find compromise. Recent salary negotiations that involved the Canadian men’s sevens team might now have been resolved ‘satisfactorily’ but from those involved they did not go well, with players said to be seriously dismayed by the lack of respect afforded by senior officials. In that particular case a World Rugby mediator was brought in to find a resolution. One wonders if perhaps one could help the current situation – if the window is not already cemented shut.

Rugby Canada will insist that they have acted in the best interests of the players and that they have exercised due diligence and found PRO’s offer to be unreasonable. On the face of it that point is hard to argue, but it’s interesting to note that not all players (or former players) seem to be on the side of management in this case. Without knowing the minute details we can only speculate but surely the above reasons are problems that could be worked out with a little more resolve at the bargaining table.

With no compromise by the two parties there are only losers. The fans lose, the players lose, and North American rugby loses. Neither PRO Rugby nor Rugby Canada come out smelling like roses, quite the opposite. In talking to Canadian fans they are overwhelmingly in support of a North American league rather than a hypothetical entrant in a foreign competition. As it stands they will have neither in 2017.

If PRO Rugby folds next week and Rugby Canada says ‘I told you so’, that is an awfully glum victory. In a week that was supposed to be a celebration of rugby in America we are instead reminded that business continues to deter the pursuit of progress.