Canes’ owner invests $250 million, will chair AAF
Tim Tebow says the Alliance of American Football keeps calling him to play, but he insists he is committed to playing baseball. (1:11)
Carolina Hurricanes owner Tom Dundon made a $250 million investment in the upstart Alliance of American Football 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 league 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 AAF. “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, billed as a developmental league, kicked off the weekend following the Super Bowl. The 10-game regular season will culminate in an April 27 championship game. CBS broadcast the two opening games, and the league said more than 6 million people watched the AAF 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, “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.”
Ebersol is largely the one who raised the financial capital to get the league started — a vision he began three years ago, eventually bringing Polian and others on board. The AAF gave players three-year, $250,000 non-guaranteed contracts with unspecified bonuses related to incentives.
The league premiered on Feb. 9 on CBS, and 2.1 million people watched, according to ratings reports. Ratings, as expected, dipped when the league broadcast on cable channels to approximately 640,000 for the Week 1 Sunday night game on NFL Network. Ratings for Week 2 games, which appeared on TNT, NFL Network and CBS Sports Network, have not yet been released.
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. 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 season with elaborate postgame celebrations after home wins.
The Hurricanes have struggled with attendance and have been long subject to relocation rumors after moving from Hartford, Connecticut, 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 whether the league was concerned that the Hurricanes would be adversely affected by an ownership pumping an investment of this size into another sports venture, Daly said: “No.”
ESPN’s Greg Wyshynski contributed to this report.