The National Football League (NFL) has unveiled a significant initiative to promote lending opportunities within underrepresented communities. In a strategic move, the league has secured a $78 million loan from a consortium of Black- and minority-owned banks and community development financial institutions (CDFIs).
The loan agreement is expected to substantially boost the “tier 1 capital” of these banks and CDFIs. By capitalizing on banking fees and interest, as stated by the National Black Bank Foundation, the lending power of these institutions is set to increase by millions. While the specific terms of the loan have not been publicly disclosed, Joe Siclare, the NFL’s executive vice president of finance and league policy, has assured that the loan will be based on market rates. Moreover, the league plans to utilize the entirety of the loan over the next three years.
Siclare said, “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. These community banks sometimes have difficulty navigating down economic times. When large corporations like the National Football League can partner and provide reliable revenue streams, it helps those banks continue to do the great work they do in their communities.”
The recent NFL deal mirrors previous financial agreements made by the National Basketball Association (NBA) and Major League Soccer (MLS), indicating a growing trend of collaboration between these sports organizations and Black-owned banks. In 2020, the NBA’s Atlanta Hawks secured a $35 million loan from a syndicate of Black-owned banks to build a practice facility, while the MLS obtained a $25 million loan in 2022 through the assistance of the National Black Bank Foundation (NBBF) and a group of Black-owned banks.
The Support of NFL for Black- and Minority-Owned Banks: A Beacon of Hope for Communities of Color
Ashley Bell, the co-founder of the NBBF, expressed optimism that these deals would demonstrate the long-term viability of Black- and minority-owned banks as partners for large corporations. This is especially crucial considering the potential impact of an economic downturn or recession on communities of color, which would be more pronounced. Bell emphasized that these banks provide loans to individuals and businesses without engaging in predatory practices, offering much-needed breathing space. These institutions serve as beacons of hope in various communities, whether on Martin Luther King, Jr. Drive or Main Street. By supporting these banks, the NFL effectively supports the communities they serve.
“Doing a deal with an entity like the NFL, that helps your brand. It helps people understand that you can do a complex deal. So, if you can do a deal with the NFL, surely you can trust that bank with your home loan,” Bell said. “Surely you can trust that bank with a line of credit for your business, your church, your faith organization. You can go to them and trust that you’ll get the best service.”
Empowering Community Banking and Economic Reinvestment
During the loan process, the NFL sought guidance from Bank of America and collaborated closely with the NBBF. This partnership with the NBBF and Black-owned banks is seen as a timely boost for community banking, which has recently faced scrutiny. Ashley Bell acknowledged the potential risks faced by Black and minority financial institutions due to the regional banking crisis triggered by the collapse of Silicon Valley Bank in March. Many of these banks operate at a hyperlocal level, providing the majority—often 85% or more—of loans to underrepresented groups within their respective areas.
The NFL’s participation in this initiative is expected to generate opportunities for Black- and minority-owned banks to generate revenue and subsequently reinvest those funds into the community, stated Dominik Mjartan, the CEO of Optus Bank in Columbia, South Carolina, one of the 16 financial institutions collaborating on the loan.
“The NFL providing us with this opportunity to participate not only strengthens our capacity to fulfill our mission of serving underprivileged, underestimated customers and communities with great potential,” he remarked.
