NFL Secures $78 Million in Loans From Minority Banks

A big piece of news came to the football world, but not about a new player or some upcoming game, but in the world of business. It’s said that NFL has borrowed over $78 million from 16 Minority Depository Institutions (MDls), Community Development Financial Institutions (CDFIs) and minority and women focused banks to support and expand business opportunity. Business like this isn’t something new in the NFL history but this transactions has been pointed out as something really perplexing in terms of a transactions.

It was said that the NFL is establishing a relationship with diverse financial institutions to provide new economic opportunities typically only available to large financial institutions and to increase the diversity of its banking partners. This is a nice structure to make a good business deal, it might be turbulent and difficult in the future, but the NFL probably has a team of really good accountants and others partners who would help the league in continuing to make the deals.

Photo via ESPN

The main institute that helped out with the selection of banks was Bank of America to identity these banks and structure a new three year term loan facility that provides not only financial returns generated from interested but also access to the league and its clubs for future endeavors. This deal was a great idea, Bank of America has their hands in a great number of businesses and others deals, so they were the best choice to make the selection of the right business to help the NFL.

NFL and Bank of America also consulted with National Black Bank Foundation (NBBF), a leading organization that provides legal, regulatory and operational support services to black owned banks. NBBF seeks to support historically undercapitalized banks and has been an invaluable partner to the League as it advances its diversity and social justice efforts.

With this transaction, business deals and overall work ethics the NFL should be in financial security for a good amount of time. We don’t know how the economic will be like for the next few years, but for a good amount of time it should be good enough for the league and how everything was settled. It’s a great amount of deals that will be seen as a both risky and a good deal for the league.