Scottish Rugby has become the first Tier 1 national governing body to link with a Major League Rugby franchise in the United States.
The union has taken a minority stake in new, Washington-based expansion team Old Glory DC, which will play in an expanded 12-team MLR competition from February 2020.
Under the deal, Scottish Rugby will provide a combination of financial and rugby support and see its Chief Operating Officer, Dominic McKay, sit on the Old Glory DC board.
The strategic partnership was born out of conversations in the US market around expanding the PRO14.
Scottish Rugby’s Board has taken the decision to align with MLR at the start.
Commenting on the agreement, McKay, said: “The US market has long been a strategic target for us and the potential and passion for rugby will undoubtedly grow in the years to come.
“It is important we are creative and develop opportunities beyond our own borders and we are very much looking forward to growing our relationship with the team in Washington in the years to come.”
Scottish Rugby Chief Executive, Mark Dodson, added: “This is a strategic international partnership, which I am pleased we have secured to become the first Tier 1 nation to take this step with a team in the MLR.
“We see this relationship as having a number of benefits for rugby in Scotland as well as developing our global rugby footprint.”
Washington is one of America’s rugby hotbeds, with the D.C area boasting 190 clubs and 7,500 players at school, college and club levels.
The Washington franchise has been developed and is led by former USA Eagles player Paul Sheehy, an owner of Sheehy Auto Stores and prominent local businessman Chris Dunlavey. Both are long-term sponsors, coaches and supporters of rugby in the area.
Old Glory chairman Chris Dunlavey said of the agreement: “From the day we joined forces to explore the feasibility of creating an MLR team in DC, we carefully pursued additional partners who could bring not only capital but also strategic value.
“This investment by Scottish Rugby is not just a commitment to our team in DC.
“This is also a major statement of confidence in the future of Major League Rugby and the growth of the sport in the U.S.”
The partnership has received the full support of MLR and USA Rugby.
MLR Commissioner Dean Howes said: “From the start, the owners of MLR’s Washington, DC membership have demonstrated the highest professionalism and a long-term view toward building a sustainable, successful rugby organisation.
“Their link with Scottish Rugby is just another sign of that commitment.”
The MLR season runs from February to June and currently has nine franchises competing in its second season following the arrival of the Toronto Arrows earlier this year.
The number of teams will expand to 12 in 2020 with the inclusion of Old Glory DC along with teams from Atlanta and New England.