NFL Borrows $78M To Support Minority Banks, Business Owners, Communities
Thursday, June 15, 2023 at 07:48PM NYSJ Sports-Entertainment Business News Service
June 15, 2023: The total value of NFL franchises is more than $142 billion, according to industry analysts.
However, calling it a move to “support and expand business opportunities with diverse enterprises across the country,” the NFL today said it would borrow $78 million from 16 Minority Depository Institutions, Community Development Financial Institutions and minority- and women-focused banks.
The NFL said it is “establishing relationships with diverse financial institutions to provide new economic opportunities typically only available to larger financial institutions and to increase the diversity of its banking partners.”
The new business opportunities will also “help fund growth, increase investment back into the communities they serve and create broader visibility for the institutions themselves.”
The NFL did not specify how it would use the $78 million loan over the next three years.
The financial institutions include locations in Arkadelphia (AR), Atlanta, The Bronx (NY), Chicago, Detroit, Durham (NC), Houston, Kansas City (MO), Nashville, Philadelphia and Washington DC.
The NFL move follows one taken in 2022 by MLS, which at the time said “it would leverage a historic $25 million loan from a syndicate of Black banks, marking the first time any sports league has participated in a major commercial transaction exclusively with Black banks.”
The NFL said it worked with Bank of America to identify financial institutions that “provide vital investments to diverse individuals, businesses, and communities.”
"The NFL is thoroughly committed to improving diversity across all aspects of the league, and that includes doing business with diverse suppliers and partners," Joe Siclare, NFL evp-finance and league policy, said via the NFL.
"We are excited that this program, will help enhance the reach of these institutions while investing in the local communities that they serve."
According to Elliott McCabe, managing director, Bank of America's Sports Finance & Advisory Group, via the financial firm, "We share a commitment to advancing diversity & inclusion and economic opportunity, and through this effort we will help provide these institutions with new opportunities to engage with the league and the local Clubs in their communities." 
The NFL and Bank of America also consulted with National Black Bank Foundation, an Atlanta-based organization that provides legal, regulatory and operational support services to Black-owned banks. NBBF also worked with MLS on securing its loan last year.
NBBF said it “seeks to support historically undercapitalized banks and has been an invaluable partner to the league as it advances its diversity and social justice efforts.”
"Minority-focused banks, and especially Black-owned or operated banks, are trusted community partners that are more important now than ever given the challenges we are seeing across the country in banking," Ashley Bell, co-founder of National Black Bank Foundation, said via the organization.”
The NFL's decision to look for solutions beyond Wall Street and to the centers of hope along Main Street and MLK Jr. Drives will move the needle as others follow their lead."
“These banks play a vital role in our overall economy and many of them are in markets that our teams play, so there is good synergy there,” Siclare told CNBC.
The Minority Depository Institutions, Community Development Financial Institutions, and minority and women-focused lenders with which the NFL is partnering include:
• Adelphi Bank - Columbus, OH (MDI, Black or African American owned)
• Agility Bank, N.A. - Houston, TX (MDI, Women-owned and led)
• Asian Bank - Philadelphia, PA (MDI and CDFI, Asian or Pacific Islander American owned)
• Central Bank of Kansas City - Kansas City, MO (CDFI)
• Citizens Savings Bank and Trust Company - Nashville, TN (MDI and CDFI, Black or African American owned)
• Citizens Trust Bank - Atlanta, GA (MDI and CDFI, Black or African American owned)
• City First Bank, National Association - Washington D.C. (MDI and CDFI, Board is majority African American)
• First Independence Bank - Detroit, MI (MDI and CDFI, Black or African American owned)
• FWBank, an Illinois Banking Institution - Chicago, IL (Women-owned, women-led and women-focused)
• Industrial Bank - Washington D.C. (MDI and CDFI, Black or African American owned)
• Mechanics and Farmers Bank - Durham, NC (MDI and CDFI, Black or African American owned)
• Optus Bank - Columbia, SC (MDI and CDFI, Black or African American owned)
• Ponce Bank – The Bronx, NY (MDI and CDFI, Board majority is Hispanic American)
• Southern Bancorp Bank - Arkadelphia, AR (CDFI)
• Texas National Bank – Mercedes, TX (MDI and CDFI, Hispanic American owned)
• Unity National Bank of Houston - Houston, TX (MDI, Black or African American owned)
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