https://www.sportsbusinessjournal.com/A ... g-football
>> “Both leagues were completely sustainable in their own right, but if you take two successful models and put them together, I think it makes it even stronger,” said Fox Sports CEO Eric Shanks.
It invites the question: Why didn’t these properties team up in the first place?
“The answer is: We should have, 100%,” said RedBird founder and managing partner Gerry Cardinale.
By last July, a merged league was so clearly the right move that Cardinale and Shanks agreed to a deal over a single red-wine-infused dinner, just days after the USFL championship game.
~
Both leagues had some positive indicators from Nielsen-measured viewership figures, but neither was a breakout hit. Perhaps most critically for the merger, neither league established a clear lead, with both properties averaging just over 600,000 viewers per game last season.
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Said that the minute decided they would relaunch in 2023, glad they did the right thing and course-corrected quickly right after the season.
The way this reads, is they have a much better picture now with 1 vs 2 leagues. The XFL has trimmed fat to be more USFL like, and I think the 1 hub practice model is likely cheaper than the 4 hub model in USFL year 2.
They seems to now both have found in each other the right investor to split costs and capital. The fact that they are leveraging each others business' skills at no or limited costs means the league has a even lower floor to make a profit.
The XFL ownership was not clarified as RBC with DJ/DG and Disney - that group owns half the UFL. Fox owns the other half.
I do not know if the XFL partners own their UFL share as a group or separately.
I think the league has 2-3 year minimum (i lean 3yr) based on the comments in the article. We know FOX wants the programming and RBC sees capital growth. Disney is likely more like Fox.
Can't wait for this Saturday!!
SBJ: UFL combines forces to tackle spring football opportunity
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