SI-FN: XFL cost cutting leading up to and after merger
Posted: Sun Jan 14, 2024 10:43 pm
https://www.si.com/fannation/ufl/news/u ... -structure
>> Long before the USFL-XFL merger was approved by the federal government, there were steps taken to consolidate the transition costs by RedBird. Almost immediately after their 2023 season ended last May, the XFL began instituting cost-cutting measures.
The reported loss by Forbes of $60 million by the XFL in relaunching, which industry insiders feel is an underestimated number, especially considering that the XFL was seeking up to $125 million from outside investors to fund the 2023 season, led Redbird Capital Partners and the league's ownership group to reassess their business model. They eventually adopted the pay structure of the USFL, their competitor at the time.
XFL 3.0, while producing a respectable product, did not meet its expectations financially and failed to hit its 2023 revenue markers. <<
It's always about money. Here its about cost cutting and stabilizing expenses, reduucing competition for limited audience (revenue), attracting investors where two leagues have much harder chance as competitors, etc...
>> Long before the USFL-XFL merger was approved by the federal government, there were steps taken to consolidate the transition costs by RedBird. Almost immediately after their 2023 season ended last May, the XFL began instituting cost-cutting measures.
The reported loss by Forbes of $60 million by the XFL in relaunching, which industry insiders feel is an underestimated number, especially considering that the XFL was seeking up to $125 million from outside investors to fund the 2023 season, led Redbird Capital Partners and the league's ownership group to reassess their business model. They eventually adopted the pay structure of the USFL, their competitor at the time.
XFL 3.0, while producing a respectable product, did not meet its expectations financially and failed to hit its 2023 revenue markers. <<
It's always about money. Here its about cost cutting and stabilizing expenses, reduucing competition for limited audience (revenue), attracting investors where two leagues have much harder chance as competitors, etc...