Xfl looking to sell up to 45% ownership stake in the league to outside investor

XFL Football discussion.
herns
Head Coach
Posts: 1391
Joined: Thu Oct 14, 2021 10:53 am

Xfl looking to sell up to 45% ownership stake in the league to outside investor

Post by herns »



This part is what has me worried a little, trying to get an influx of cash by selling a minority stake in the league is fine but that’s a large % and if the split in the original purchase was 33.3% to the original 3 owners that’d make the new owner the majority owner
4th&long
MVP
Posts: 6475
Joined: Sun Nov 24, 2019 2:27 pm

Re: Xfl looking to sell up to 45% ownership stake in the league to outside investor

Post by 4th&long »

herns wrote: Mon Aug 08, 2022 8:15 pm

This part is what has me worried a little, trying to get an influx of cash by selling a minority stake in the league is fine but that’s a large % and if the split in the original purchase was 33.3% to the original 3 owners that’d make the new owner the majority owner
I doubt that.
RBC is funding it, they own it. Rk/DG are minority owners. RBC has not stated publicly they are funding the league - why? Because then its clear Rock is just a spokesman? Or they don't want to commit publicly? Or ????

Clearly XFL doesn't want to talk about this funding. They want the story to be "Its Rock's league - see its cool!" Is that enough? We'll see soon.

I said in another thread that two leagues existing is going to make investors pull back to see who the winner is going to be, I still feel that's a big concern for both leagues. This is why I feel the leagues best path is to merge/combine in some fashion.
herns
Head Coach
Posts: 1391
Joined: Thu Oct 14, 2021 10:53 am

Re: Xfl looking to sell up to 45% ownership stake in the league to outside investor

Post by herns »

4th&long wrote: Mon Aug 08, 2022 8:45 pm
herns wrote: Mon Aug 08, 2022 8:15 pm

This part is what has me worried a little, trying to get an influx of cash by selling a minority stake in the league is fine but that’s a large % and if the split in the original purchase was 33.3% to the original 3 owners that’d make the new owner the majority owner
I doubt that.
RBC is funding it, they own it. Rk/DG are minority owners. RBC has not stated publicly they are funding the league - why? Because then its clear Rock is just a spokesman? Or they don't want to commit publicly? Or ????

Clearly XFL doesn't want to talk about this funding. They want the story to be "Its Rock's league - see its cool!" Is that enough? We'll see soon.

I said in another thread that two leagues existing is going to make investors pull back to see who the winner is going to be, I still feel that's a big concern for both leagues. This is why I feel the leagues best path is to merge/combine in some fashion.
I believe at the espys it was announced Dany Garcia’s they first women to have equal ownership in a league so Redbirds not the majority if what was said during the espys is true. Best case scenario for each league may be selling to the tv partners(nbc and ESPN) if the partners are interested
User avatar
Firecop
Coach
Posts: 777
Joined: Mon Mar 04, 2019 10:10 pm

Re: Xfl looking to sell up to 45% ownership stake in the league to outside investor

Post by Firecop »

It says investors (plural) to own 45% of the league. That does not imply one owner with a 45% stake, but likely multiple investors owning a maximum of 45% which is not automatically a majority if the remaining 55% agree/ plan to vote as a block.
Direct from the Dragon's Lair
MGB01
MVP
Posts: 3314
Joined: Wed Aug 14, 2019 8:42 pm

Re: Xfl looking to sell up to 45% ownership stake in the league to outside investor

Post by MGB01 »

The key words in there are 'up to' and 'investors' (plural): they get the right one, or ones, at 25 they'll stop there. They might have their own connections and move the league down the road. The 'up to' part tells me they're going to be seriously vetting vs jumping on the first offer, no Reggie Fowler (who is essentially getting a life sentence in a few weeks) here.

Freedom Football was at least a good idea paper-wise in that a lot of former NFL players that are interested in moving up to the business side, and would be good targets here (obviously not as majority investors), but hard pass on Russell Okung or anyone else who made headlines with bitcoin a couple years ago--OBJ, Saquon Barkley, and Brady are the big names in it now, too unproven and unestablished at this point, especially when you're trying to shed this version of the XFL of that label.
XFLUSFLGUY
Running Back
Posts: 126
Joined: Thu Apr 14, 2022 5:14 pm

Re: Xfl looking to sell up to 45% ownership stake in the league to outside investor

Post by XFLUSFLGUY »

Incestor..? So they’re searching in the Deep South I take it? Lol..
Gopher123
Quarterback
Posts: 395
Joined: Sat Mar 13, 2021 7:07 pm

Re: Xfl looking to sell up to 45% ownership stake in the league to outside investor

Post by Gopher123 »

Yes, this ownership group is going to be smart about this and I don’t see them surrender that much stake to one party. IMO, this whole thing has been greatly blown out of portion. If they announce an investor, then that would be news. As of now, they are testing the water to see what’s out there. As proven by the USFL, this isn’t something that is all that unusual. Redbird has the money to fund it all if they have to but why if others are willing to contribute? Perhaps, if nothing more, it’s a move that takes a serious investor looking at the USFL and flipping them. It is business after all.
laxtreme56
Coach
Posts: 886
Joined: Tue Jul 28, 2020 6:16 pm

Re: Xfl looking to sell up to 45% ownership stake in the league to outside investor

Post by laxtreme56 »

Gopher123 wrote: Tue Aug 09, 2022 8:47 am Yes, this ownership group is going to be smart about this and I don’t see them surrender that much stake to one party. IMO, this whole thing has been greatly blown out of portion. If they announce an investor, then that would be news. As of now, they are testing the water to see what’s out there. As proven by the USFL, this isn’t something that is all that unusual. Redbird has the money to fund it all if they have to but why if others are willing to contribute? Perhaps, if nothing more, it’s a move that takes a serious investor looking at the USFL and flipping them. It is business after all.
This is the most logical response. It's not like Redbird started a GoFundMe page or is threatening to shut the league down without help from an outside source (see Tom Dundon). If anything, it's just a counter to the USFL and trying to beat them at their own game. It's safe to safe Redbird and Co. were closely examining the USFL season to see what worked and what didn't. The pseudo-hub was likely inspired by the USFL, paying similar wages but more benefits can also be seen as a counter to the USFL. This seems much less like desperation and more about shoring up the league's viability and long-term future.
4th&long
MVP
Posts: 6475
Joined: Sun Nov 24, 2019 2:27 pm

Re: Xfl looking to sell up to 45% ownership stake in the league to outside investor

Post by 4th&long »

The real question is: Is this money necessary to get through year 1 or is this for post year 1 expenses. It could very well be the former which is why they aren't commenting on it. Don't get tripped up on the plural sounding Investor(s) - its either one or multiple.
Keep in mind 2 top execs have recently left and they have yet to secure a lease with Allegiant (or in LV).
The XFL, RBC and PJT Partners all had no comment on this unannounced scoop by Sportico.

Per XFL News Hub...

>> The XFL Seeking Investors To Own Up To 45% Of The League

The XFL has engaged PJT Partners to raise $125 million in equity funding. A focused equity raise with PJT Partners contacting 15 affiliated offices. RedBird Capital is prepared to fund 100% of the equity if needed<<

https://xflnewshub.com/xfl-news/xfl-see ... he-league/

So back to the real question... looks like XFL/RBC is looking to use these funds for 2023 - but unofficially as as its not from XFL/RBC - "is prepared" to 100% fund it if needed". OK. Very interesting.

They are willing to give up 45% for $125mm purportedly valuing the league at somewhere in the $250-300mm range. They haven't played a down yet. They have a mgt team with no startup and league running experience. That $125mm sounds about what they will need to play this season based on prior XFL/USFL and other alt league info. They are willing to give up 45% of the league to an outside investor to pay almost all the bills? Nice of them.

I hope XFL isn't doing an AAF here - rushing to market and over committing. They likely should have scaled down to 6 teams 8 games and gotten their swim legs set before full bore into this endeavor. Nothing wrong with that.

The next few weeks months will be interesting.
Tank55
MVP
Posts: 2804
Joined: Tue Mar 05, 2019 3:57 pm

Re: Xfl looking to sell up to 45% ownership stake in the league to outside investor

Post by Tank55 »

It's definitely not a counter to the USFL's fundraising efforts. It's a startup venture looking for a new round of funding. It doesn't imply that the league is on shaky ground; if anything, you need to be in a good place to raise money from quality investors. Hope they can get it.
2020 East Division Champions
2021 February Monthly T-Shirt Giveaway Champion
Post Reply