According to a report by Sportico the XFL is looking for new equity investors in the league. Dwayne ‘The Rock’ Johnson, Dany Garcia, and Gerry Cardinale’s RedBird Capital Partners own the XFL. They purchased the property out of bankruptcy for $15 million, plus over $9.2 million in debts and payments in 2020.
Equity investors purchase company shares with the expectation that they’ll rise in value. The equity used in the sale of shares would help fund the league.
“Part of PJT’s responsibilities with the XFL search is ensuring potential equity investors share the vision of the current ownership group on the development and commercialization of the XFL, according to the person familiar with the transaction.”
Is the league already losing money, or is this part of the long-term plan? The USFL is working with Allen & Co. to help fund expansion in their league.
Seeking new equity investors could be a similar move. The difference is RedBird Capital holds a capital of $6 billion. But they have many projects going on.
Now that the XFL has announced its cities, the TV deal with Disney and started selling season tickets. This could be a time to start looking for more investors. The problem becomes too many cooks in the kitchen.
Former XFL Commissioner Oliver Luck had noted that the only way for Spring Football to work was to have one sole person to answer for the league, rather than a bunch of investors. It should be noted that the partnership between Luck and McMahon ended in a lawsuit.
We will keep an eye on this news. The USFL working with Allen & Co. worried some fans, but it was much to do about nothing. They had been working with the USFL for a while. This move by the XFL could be the same.
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Notice how this was announced after Townhall? Who really is funding the league and how how willing are they to go? Fox said $150mm over 3 years.
No public comment ? Very little transparency. They need to be less vision and more candid.