@romez

United Football League Readying for Launch

Posted by Roman on March 10th, 2009 | Filed under Business, Sports

Watch out NFL. There’s a new football league in town. Actually, the NFL has nothing to worry about. Not for a while at least. In fact, every league that has ever risen up to try and take away NFL market share has eventually failed. A few in particular come to mind: USFL (1982-1987), XFL (2000-2001), and most recently, the AFL (1987-2008) which has closed shop until further notice. RIP.

The UFL or United Football League will host it’s first season in 2009 and already seems more promising and ready for the long haul than leagues of the past. Lead by commissioner Michael Huyghue, they’re doing things differently from the get-go:

Starting small, starting smart:

• Television broadcast partnership with Versus
• Strong web presence with steady stream of communication
• 6 week season (October – November)
• Similar rule-set as the NFL
• 4 initial teams – Orlando, Las Vegas, New York, San Francisco
• 2 more teams in 2010 – Monterrey Mexico, Salt Lake City
• $12-20 million player salary cap per team
• $3 million staff salary cap per team
• $30 million will get you half ownership of a team
• Another $30 million ownership steak will be retained by the league
• Shares of team ownership may be sold to the public to raise another $60 million

That last bullet point is the most intriguing. It means that Joe the plumber can become Joe the UFL franchise owner.

Even with a solid foundation, no new venture is without challenges:

• Limited player talent
• Plans to seek out troubled players such as Michael Vick and Adam “Pacman” Jones
• Limited coaching talent; Jim Fassel, Ted Cottrell, Jim Haslett and Dennis Green have been hired
• Potential lack of investor funding
• Economic timing

As with all startups, be they bleeding edge web apps or professional sports leagues, execution matters above all else. The UFL has a solid plan, a smart leadership team and manageable obstacles. Only time will tell how far the league will go and how successful it will be.

I’m a huge sports fan and someone who can never get enough football so I’ve got the UFL’s back. From both a business and entertainment perspective I look forward to seeing the development, growth and performance of this new league on and off the field. Many questions remain, but one stands out and keeps me thinking: Would I invest?

Would you?

Tags: football, investment, sports franchise, ufl, united football league

Read more | Comments (0) | March 10, 2009