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USFL Partners With Firm To Help Search For Investors To Expand League

Josh Kosman from the New York Post reports that the USFL is seeking outside investors to help fund team expansion. We have heard for quite some time that teams will only move into their home locations if a team owner is paying for it.

This is why the league references itself as an incubator. They want people with money to come in and buy teams, which FOX believes will be worth a lot of money.

“Fox Sports-owned United States Football League has hired investment bank Allen & Co. to find minority investors to help fund the league’s expansion, three sources with knowledge of the situation said.”

Allen & Co is the same firm that helped with the recent sale of the Denver Broncos.

“Fox’s plan is to raise between $150 million and $200 million, two sources said.”

According to multiple reports, FOX plans to invest $150 million over three years in the new USFL, with year one coming to a close this weekend. This means FOX is looking to inject even more capital.

Whether the USFL finds someone in the next six months or not, year two is a go.

“Fox plans to keep the league going next year even if it cannot find the right investor, sources said, and is controlling costs by using some of Fox’s infrastructure, including its marketing team.”

Kosman says that the USFL ratings are on par with the MLS. So then, in effect, their teams are worth the same.

“With MLS franchises now worth about $400 million each, the math goes that the USFL with its eight teams could be worth at least $3.2 billion a few years down the road.”

It should be noted that News Corp, which owns FOX and the USFL, also owns the New York Post. It looks like the USFL is putting the word out that they are looking for minority investors.

Based on the math, the league is looking to get at least 20 million per team. It should be noted that soccer is way cheaper to field than a football team. But the lure of a 20 million dollar investment turning into 200 to 400 million in 10 years would be a good investment if you had the money.

We will keep you posted on USFL News Hub as this story develops.

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Mark Perry is the founder and editor of USFL News Hub, a premier site dedicated to providing comprehensive coverage of the USFL. Since its inception in February 2022, the platform has grown exponentially under his expert leadership, carving out a unique niche in the world of football reporting. Mark has been covering football extensively since 2018, with his in-depth knowledge and insightful analysis helping to elevate USFL News Hub as a trusted source for all things related to spring football. His expertise spans various aspects of the sport, offering readers a nuanced perspective on the trends and developments in the USFL and beyond. Beyond his editorial responsibilities, Mark is known for his approachability and commitment to fostering dialogue around the sport. He is always open to inquiries and discussions about spring football. He can be contacted directly by emailing mark.perry@usflnewshub.com. His dedication and passion for football make him a vital voice in the coverage of this thrilling sport.

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