Dundon does not expect his involvement with the AAF to affect the Hurricanes franchisehurricanes
The AAF has named Hurricanes Owner Tom Dundon as its new Chair after he committed $250M to the league last week so it could "meet its obligations" to pay its players, according to David Glenn of THE ATHLETIC. Sources said that the AAF's "existence was in jeopardy" less than a week after its debut on Feb. 9, as it was "running short on cash." There was a "good chance it was going to miss payroll last Friday" without the addition of new investors. A source said there have been "early discussions about an AAF franchise in Raleigh, either via relocation or expansion," given Dundon's investment. That would not occur until '20 at the earliest. Dundon will "continue in his role" with the Hurricanes (THEATHLETIC.com, 2/18). Pro Football Talk's Michael David Smith writes the only path he sees for Dundon "turning a profit on a $250 million investment in the AAF is if he thinks he'll be able to sell it to the NFL and turn it into the NFL's official minor league." Smith: "No way he's making back $250M via TV and ticket sales" (TWITTER.com, 2/19).
GETTING A SECOND CHANCE: Dundon said that he had "initially passed on investing in the AAF, but reconsidered when it ran into financing issues." In Raleigh, Luke DeCock notes Dundon used "football guidance" from CBS' Tony Romo and Fox' Troy Aikman as he "stepped in to take control of the single-entity league." He said his AAF responsibilities "won't at all" impact his role with the Hurricanes. He said, "Although I talk to [Hurricanes GM] Don Waddell and I'm involved, I don't have a day-to-day responsibility and therefore I have lots of excess time. If I didn't do this, I was going to go buy a company and start running a company again. I needed more to do. I feel like the Hurricanes are in good hands, the business is running well. It's still something I love and have conversations about and want to keep improving, but it's not a full-time job. It never really was. It definitely isn't at this point" (NEWSOBSERVER.com, 2/19).
DON'T CALL IT A BAILOUT: The AP's Barry Wilner notes AAF co-Founder & CEO Charlie Ebersol "dismissed reports" that the league was "getting a financial bailout from Dundon." Ebersol said, "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." Meanwhile, Dundon said that the AAF "won't be seeking more investors at this time." Dundon: "We won't bring in anybody for capital. We're not going to take people's money" (AP, 2/19). But NBCSN's Mike Florio asks, “How do you suddenly need $250 million after only one week of operation?” NBCSN’s Chris Simms added, "Where in the planning did it go wrong to where, ‘Okay, we're in week two and we're going to be $250 million in the hole here?’ I don't get that either. It's not a good look for their league" ("PFT Live," NBCSN, 2/19).
DUNDON'S MOVE QUESTIONED: Reactions on Twitter were quick to question Dundon's investment. The Boston Globe's Ben Volin: "So the AAF could barely make it one week without having payroll issues? And someone thought it was a good investment to sink a quarter of a billion dollars into the league?" ESPN Radio 99.9 Raleigh's Joe Ovies: "I can’t wait for it to be used against him when the Hurricanes don’t sign players fans want. 'Oh, so you got $250 million for a crap football league but not enough money to sign Nicklas Backstrom!?'" But Orlando-based WYGM-FM's Brandon Kravitz writes the "overreaction to this Tom Dundon/AAF bailout story is ridiculous." Kravitz: "This is a league that's paying its players a real salary, pays its staff a real salary, offers health benefits to all of its employees and players. They dumped a ton of money into promotion. OF COURSE they are cash strapped to a degree. It's a start up business, what start up business is flushed with cash flow and revenue? That's not how it works." He said having a "multi millionaire dump 250 mill into their product" is "not a time to be alarmed" (TWITTER.com, 2/19).
GRAVITY OF THE SITUATION: USA TODAY's Nate Davis writes Dundon's cash infusion "shows how difficult it is to launch a pro sports league, especially one that wants to be relevant on Day 1." This shows the "reality of the situation: It's really hard to launch a second pro football league in this country" (USATODAY.com, 2/19). In DC, Matt Bonesteel writes the AAF on paper "shouldn’t have this problem," as all teams are "owned by the league itself and not individual owners." Bonesteel: "If the AAF blew through its initial funding before the second weekend of its regular season, it could be a sign of future problems down the road" (WASHINGTONPOST.com, 2/19).
