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.