Canes owner puts $250M into AAF, to be chairman
Carolina Hurricanes owner Tom Dundon made a $250 million investment into the upstart AAF and will become the league’s new chairman.
The Athletic reported that the league was in danger of not making payroll on Friday, before Dundon’s investment. AAF co-founder Charlie Ebersol dismissed reports that the Alliance was getting a financial bailout from Dundon.
“This has been an extraordinary undertaking for us,” said Ebersol, who less than a year ago partnered with Pro Football Hall of Fame executive Bill Polian to create the Alliance. “It’s a giant challenge and opportunity, and as a startup you are constantly looking for some peace of mind. When we got out of the first week of games, we saw there was so much interest from investors, and if we had one person who could take care of us for a very long time, that would be great.”
The eight-team AAF kicked off this month, a week following the Super Bowl. Billed as a developmental league, the 10-game regular season will culminate in an April 27 championship game. CBS broadcast the two opening games. The league said that over 6 million people watched The Alliance in its inaugural weekend.
“As a lifelong sports fan and entrepreneur, I’ve always valued the opportunities generated in the ecosystem of sports and entertainment,” Dundon said in a statement released by the AAF. “I’m impressed with The Alliance’s stunning growth in-stadium and across TV, mobile and social media in just these first few weeks.”
Ebersol said in a statement that “Tom, Bill Polian, and I will work with our great team at the Alliance to expand our football operations and technology business. Tom is a self-made American success story who brings a wealth of knowledge in the sports, entertainment and finance worlds and proven leadership to our organization.”
Dundon is the NHL’s newest owner. The Dallas billionaire took over in January 2018, purchasing a majority stake from longtime owner Peter Karmanos Jr.
The Hurricanes issued a statement from general manager Don Waddell reiterating Dundon’s commitment to the NHL franchise.
“Tom is excited about the direction of the Carolina Hurricanes and remains fully committed to this franchise’s current and future success in Raleigh,” Waddell said.
Dundon, 47, is the former CEO of the Dallas-based lending firm Santander Consumer USA, a Dallas-based lending firm. He is the co-founder of Trinity Forest Golf Club in Dallas, home of the PGA Tour’s AT&T Byron Nelson, the majority owner of Employer Direct Healthcare, a healthcare services company, and a primary investor in Topgolf.
The Hurricanes have not made the playoffs since 2009 — the longest active drought in the NHL, and Dundon has pledged to inject a new energy into the franchise, which has manifested this year with elaborate post-game celebrations after home wins.
The Hurricanes have struggled with attendance and have been long subject to relocation rumors after themselves moving from Hartford in 1997. However when Dundon took over as majority owner, he agreed to not apply for relocation for seven years, which is a standard part of NHL purchase agreements.
In an email, NHL Deputy commissioner Bill Daly said Dundon did not need permission from the NHL to make this investment in another sports entity. When asked if there was any concern from the league that the Hurricanes would be adversely affected by an ownership pumping this kind of cash into another venture, Daly said: “No.”
ESPN’s Greg Wyshynski contributed reporting.