Forbes: XFL lost $60 million in '23, projects $100 million in revenue in '24

[GregParks]

https://www.forbes.com/sites/jabariyoun ... 66bc7157fe

Includes comments from all three owners, with all of them, including Gerry Cardinale, talking about the long game. Cardinale said he expects XFL to be cash-flow positive by 2027.

[4th&long]

https://www.forbes.com/sites/jabariyoun ... 66bc7157fe

Includes comments from all three owners, with all of them, including Gerry Cardinale, talking about the long game. Cardinale said he expects XFL to be cash-flow positive by 2027.

WHOA! $60mm loss. Projecting $100 million in revenue in 2024 and not cash flow positive for 4 more years ?

[MGB01]

https://www.forbes.com/sites/jabariyoun ... 66bc7157fe

Includes comments from all three owners, with all of them, including Gerry Cardinale, talking about the long game. Cardinale said he expects XFL to be cash-flow positive by 2027.

WHOA! $60mm loss. Projecting $100 million in revenue in 2024 and not cash flow positive for 4 more years ?

And here we go. Why did we ever need to add a certain recent ex-poster when we have him right here?

I trust if the USFL ever released any real financial data you'd be saying the same thing right................right?

[laxtreme56]

That's actually not too bad. Remember the 83 USFL season lost $250 million converted to 2023 USD and XFL 1.0 lost $70M in 2001 or roughly $120M in today's money. I expect the USFL lost between $25-35 million last year. Seems ownership is at least committed for 4 years which is a positive sign, but also realistic. Spring football ain't becoming profitable overnight

[GDAWG]

the XFL will lose money next year too, but that it should be less than $60 million. If it's not, it's not a good sign.

[johnnyangryfuzzball]

So if their $20 million TV revenue constitutes a fourth of their revenue... and lost $60 million... that means it's a $140 million expense against $80 million in earnings for year 1. They recovered at least half of their investment—in year one alone—in a business notorious for bleeding money.

For comparison, the AAF spent $100 million on its abbreviated season in 2019... and only recouped $12 million.

This could have been far worse. Long-term viability certainly looks like it's in reach. A few better choices of markets, attendance recovery in the markets they have... for a first year, so long as they have the money to keep going, they'll be all right.

[CFLfan_inPhilly]

Quite frankly, I am shocked that these leagues keep popping up, considering all the money that they lose time after time.

[GregParks]

Quite frankly, I am shocked that these leagues keep popping up, considering all the money that they lose time after time.

It’s because the potential payoff is so lucrative - either hundreds of millions (potentially billions) of dollars in broadcast rights fees or the same in franchise fees. The problem has always been finding someone willing to sustain the kinds of losses it’ll take in the first several seasons to get to those points - if the sports rights bubble doesn’t burst first.

And unfortunately, that potential also attracts snake-oil salesmen who use it as an opportunity to make promises to investors who don't know any better and abscond with their money.

[4th&long]

the XFL will lose money next year too, but that it should be less than $60 million. If it's not, it's not a good sign.

The only thing truly substantiated in this article is what RBC said. The rest is not verified. The $20mm in TV rev is not likely as we have heard more likely is an escalating rate ($100mm over 5 yrs escalating). The $60mm is "industry sources", it could be more or less. And "Next season, the league projects $100 million in revenue, said people familiar with its finances." And still be cash flow negative thru 2026? Sure.

What was said by RBC is cash flow negative for 2023, with 2024, 2025 and 2026 (expected to be) cash flow negative . As I've posted before... if RBC is willing to front losses, the league will continue. I actually think its a plus that RBC is flexing its interest in the XFL. And it appears they will be more involved.

>> Cardinale likes to compare the trajectory of the XFL to Major League Soccer (pre-Lionel Messi) and aims to pass MLS to become the fifth-biggest sports league in the country. Cardinale said he expects the XFL to become cash-flow positive by 2027.

“It’s not a flip the switch and all of a sudden you’re successful,” he told Forbes. “It took MLS 30 years to get to their current average team and implied league valuations. I believe we can do it in five years.” <<

[GDAWG]

He also says that he thinks the XFL will surpass the MLS as the fifth major league sport by 2027. That won't happen if by that time, the MLS signs Messi's former PSG teammate Neymar. Signing Messi is a big deal for the MLS, bigger than if MLS had signed Cristiano Ronaldo. By that time as well, the MLS could also be quite appealing for another former PSG teammate of Messi's in Kylian Mbappe, although he'll only be 29 in 2027. I watch soccer on an international level, and all four men (Messi, Ronaldo, Neymar and Mbappe) are the four biggest names in the sport right now, although you could easily throw the Brit Harry Kane in the mix as well.

I can't see the XFL surpassing MLS as one of the big 5 in 2027. 2027 is a bit ambitious. I'd just go year by year right now.