Major League Football Continues Announcements with Potential New Funding Announcement

Major League Football Continues Announcements with Potential New Funding Announcement
Major League Football Continues Announcements with Potential New Funding Announcement

Major League Football (OTC: MLFB) continues to make moves as the league gets ready for its 2022 Season. With four teams announced, a timeline for playing decided, but not yet released, and three coaches announced with a fourth to come soon, the league is getting a financial boost. According to a league-issued release, Major League Football has received a Term Sheet for a $7.5 million equity line investment. MLFB has been steadily ramping up. MLFB has been methodically rolling out information about its 2022 Season. However, access to funding has been a question mark for Major League Football that remained unanswered. This announcement means that there are investors that believe in a publicly-traded sports league. That is huge for MLFB and the future of sports as we know it.

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Major League Football Continues Announcements with Potential New Funding Announcement

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Getting this vote of confidence from an investor is a huge step forward for the newest player in the Spring Football scene. Major League Football differs from the USFL and XFL in that it is a publicly-traded company. This is unlike the USFL which is solely owned by Fox, while the XFL is financed by RedBird Capital.

The release from MLFB indicates that the $7.5 million line of credit is coming from an “institutional investor.” This is, “a big development for the league,” said one analyst. Analysts agreed that this is a substantial step beyond the current funding Major League Football has access to. It is believed that the issuance of the $7,500,000 Equity Line Term Sheet has prompted another institutional investor to prepare a similar proposal.

The lines of credit are not necessarily mutually exclusive and could give Major League Football options for funding. Depending upon the language in the term sheet, or sheets, the League could select a term sheet with the most favorable terms. According to analysts, MLFB could also decide, depending on the terms, to tap into both and have access to up to $15 million in funding. This is an even stronger sign for MLFB if true as it opens up even more funding options.

Unlike promissory notes that the league had previously issued, there is no call date on the line of credit, the league could simply have to meet interest payment requirements with the investor. For an investor to show this level of commitment and belief in the emerging league is a big step. Without knowing the terms of the offer sheet though it is impossible to speak directly to what could happen.

The next step in this potential funding is for the MLFB board to consider the offer and formally accept it. Per the release CEO Frank Murtha said, “Terms of this offer are being reviewed by our Board of Directors and financial consultants. It has not been accepted, pending this review.”

What this means for MLFB 2022

An announcement like this is huge news for the rapidly emerging league. Access to $7.5 million, or more, in capital is no small feat. This certainly goes a long way towards Major League Football launching successfully for this year. Launching any sports league is a massive undertaking. Launching a professional football league on the level that MLFB has said they are aiming for is even more of a challenge.

For MLFB to launch in four cities would require a substantial investment by the league. Specifically on logistics such as field rentals, travel, lodging, and more. Additionally, MLFB has already said that they are committed to paying their players and doing right by them in Year One. With this funding and access to a substantial line of credit, Major League Football is one step closer to making their 2022 season a success.

Money Talks

With access to this line of credit, Major League Football can now begin to turn its attention to some pressing issues that they need to line up for a successful 2022 season. First and foremost, this means that the league can now begin to enter into negotiations and agreements with cities and stadiums around the country for the season. This is not a huge outlay for the league but is a meaningful one. In some cities that have been tied to MLFB, the cost of renting a stadium can be close to $5,000 per game. This includes access to a stadium and usage of lights, scoreboards, locker rooms, and more. 

There is also the challenge of transporting teams of players, coaches, and staff between the four cities. The cost of transport varies greatly depending upon the method of transportation. The specifics of transportation vary greatly depending upon the method of transportation and without knowing where the teams will be playing it is difficult to speculate on costs in that regard.

Paying players is another unknown for Major League Football. However, with access to this line of credit, Major League Football certainly has access to the necessary funding to ensure they pay all players.

The largest unknown for MLFB is whether it can close a deal with a major media player to broadcast games. If the league manages to close a deal with a media partner that would add a substantial revenue stream to ticket sales and merchandise. 

MLFB Stock Gaining Ground

Major League Football Stock Movement April 4 after the Funding announcement
Major League Football Stock Movement April 4 after the Funding announcement

This announcement via MLFB’s website and emailed press release caused a spike in their stock price. Major League Football is close to $.03 per share, a large increase from the $.0228 price a month ago. The market sees immense value in this announcement. This announcement places MLFB closer to “cleats in the grass” as the league likes to say. Investors are optimistic that with continued progress with funding, and news related to teams, coaches, and apparel, Major League Football can make progress for their shareholders as well.

Other MLFB News

With an announcement of this magnitude, and the background work necessary, that means that what was a highly-anticipated week of announcements from MLFB may mean some delays according to league sources. MLFB had previously said that this week was the week for a lot of news. Specifically, news about the fourth and final coach, the launching of MLFB apparel, and a social media rollout. After speaking with league sources, it seems that the fourth coach and apparel announcements may be delayed a week. However, the social media rollout is still on track.

Fans of the league may be initially disappointed with the delays. However, it is important to note that by landing a funding deal of this magnitude it is clear that CEO Frank Murtha and the rest of the executive management team have been busy behind the scenes. A slight delay in items like apparel and coaching are easy trade-offs for an emerging organization if it means landing access to a line of credit at this level.

Major League Football has preached “Patience is Strength” for a while now and this announcement about potential funding proves it is true.

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