http://www.rugby.com.au/news/2016/12/22 ... -struggles
San Francisco folded. Players throughout the league are on notice that their contracts might terminate in a week if there's no resolution of issues between PRO Rugby and USA Rugby.
This might be similar to PRO's attempt to expand into Canada. Rugby Canada eventually wouldn't agree to allow the league into Canada because PRO insisted on exclusivity in Canada... no competing leagues.
If that's really the line PRO is pushing, that sounds like the convenient excuse to fold. USA Rubgy cannot practically make that promise without the potential of running into lawsuits.