Fox hires investment bank to look for USFL investors

USFL Playoffs - Philadelphia Stars v New Jersey Generals
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Fox owns all of the USFL. That could soon change.

The New York Post recently reported that Fox has hired Allen & Co. to find potential investors in the four-letter spring league. Fox hopes to raise $150 million to $200 million by selling partial equity in the USFL.

It will be very interesting to learn the percentage of ownership that is transferred in exchange for $200 million. That will become the basis for putting a current value on the entire operation.

Here’s our question. If the USFL is inevitably going to become much more valuable, why would Fox want to sell any of it? Fox doesn’t need the infusion of cash. It can fund the expansion of the league, and it can reap the rewards that come from having it grow and thrive.

The Post explains that Fox is currently controlling costs by using some of its own infrastructure, like its marketing team. There’s surely plenty more than Fox can do to share resources with the USFL as the fledgling football league finds its footing. Without selling any of the equity in a league that is destined to become much more valuable.

10 responses to “Fox hires investment bank to look for USFL investors

  1. Im still baffled why anyone thinks a minor league org of any sport will get good ratings and be successful. With busy lives, I save my time for the pro sports.

  2. Fox is likely reducing their risk because they are not as bullish on the league’s potential.

  3. Likely looking for strategic partners, like casinos, who could help expand interest in the league, beyond just cash.

  4. “Without selling any of the equity in a league that is destined to become much more valuable.”

    Why do we think the league will gain in value? No one showed up to watch and their TV audience shrank by the week. They put their playoffs and title game in a different location than all the other games so fans can’t show up if they wanted to. Now you put your title game on the night before the 4th of July and expect people to watch? This league will go bankrupt like all the other spring leagues. If this didn’t work in the 80s and 90s it won’t work now. People are playing less football growing up than ever before.

  5. It was good attempt at resuscitating a very old league but I think it will fold after 2023. But hey, the Philadelphia STARS didn’t miss a beat after 40 years getting back into the Championship game!!

  6. You have to be realistic can the USFL rival tennis / F 1 racing / WNBA sure it can but the talent level needs to go up especially at QB you have to increase the pay to get a few that are sitting it out for whatever reason and you need local players i’m a huge NFL fan and of the draft these USFL are only know by there families you need players we heard of .

  7. Obtaining additional equity partners could help to grow the league, as long as they are the right partners. The league will eventually need to expand to it’s named cities and undergo other upgrades in order to remain viable. Partnerships with advertising, merchandising, infrastructure, and other entities could help in those efforts as well as providing cash.

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