Chris Smith here, handling today’s newsletter to write about private equity firm Brand Velocity Group’s acquisition of NFL Flag operator RCX Sports. NFL Flag has around 1 million participants, making it the world’s largest flag football platform, and RCX pursues mass youth participation, in part, to create a fan development pipeline for its league partners (RCX also operates licensed programs with MLB, MLS, the NBA, NHL and WNBA). The NFL’s stated goal is a full ecosystem of flag football opportunities, including NFL Flag youth leagues, high school, NCAA, the NFL and TMRW Sports’ coming pro flag league and the Olympics. The league recently named former Pro Padel League COO Brian Flinn as its SVP/Global Flag Football.
RCX, which operates league-licensed youth sports programs like NFL Flag, has been acquired by Brand Velocity Group. NFL Flag
Investment firm Brand Velocity Group has acquired RCX Sports, which operates league-licensed youth sports properties including NFL Flag, Jr. NBA and NHL Street. The company was previously owned by The Raine Group’s investment arm.
BVG is an independent sponsor, raising capital on a deal-by-deal basis, and the RCX investment is part of the sports investment strategy it launched in 2022. Limited partners in the RCX acquisition include Hamilton Lane’s social impact fund, St. Cloud Capital, Darco Capital and Three Ocean Partners. Athlete investors in the deal include Eli Manning, a partner with BVG, as well as Emmitt Smith, Peyton Manning, Klay Thompson and Larry Fitzgerald.
Financial terms were not available. The transaction is for 100% of RCX’s equity. Raine and Orrick, Herrington & Sutcliffe advised RCX, while BVG was advised by CohnReznick Advisory and Sidley Austin. Sidley’s Chuck Baker is also an advisor to BVG’s sports investment practice.
BVG partner Austin Ramos said RCX is differentiated from other youth sports operators because of its valuable league partnerships -- he pointed to the NFL providing a Super Bowl ad spot for RCX’s NFL Flag program last year -- and its strategy of pursuing mass participation instead of just elite-level play.
“The strongest youth sports businesses are the ones where you have commercial success and community impact go hand in hand,” Ramos said. “RCX is not a business focused on optimizing the revenue per participant. The model is around building access, and that’s a sustainable base. In this case, the financial performance of RCX and accessibility, they’re going to point in the same direction.”
RCX was originally part of a youth sports roll-up strategy at Raine, but it was split off when the rest of that business was sold to Endeavor in 2021. It currently has licensing deals with the NFL, MLS, NBA, MLB, NHL and WNBA. Raine’s Brett Varsovtold SBJ last year that the firm was getting weekly calls from potential buyers.
Ramos and BVG’s Drew Sheinman acknowledged it was a competitive auction process, though they wouldn’t comment on financial details. RCX’s management team will remain in place.
RCX CEO Izell Reese said he welcomes stronger guardrails around youth sports investments, as recently proposed in Congress, but shared he spent the last four years getting to know the firm and its partners. He said there’s alignment on the core goal of improving youth sports accessibility, and he spoke highly of BVG’s Share the Gains initiative, which sets aside some of the general partnership’s carried interest for portfolio company employees.
“While we do sit under private equity in youth sports, there’s a right way to do it. That has always been my vision,” Reese said. “We attracted the attention of six pro leagues because of that mission alignment. So to have a firm now that is solely focused on that, ... it truly gives us a platform and an opportunity to accelerate the growth, evolve the vision and look at more sports to bring on board.”
Draft season is arguably the most exciting time in the fantasy football calendar, and now it has a national day to commemorate the period.
National Fantasy Football Draft Day has been designated for Aug. 21, through an effort by Fantasy Sports Entertainment & Productions.
The group is also launching a three-day event at Circa Resort & Casino in Las Vegas called Draft Nation to celebrate the inaugural holiday, with packages starting at $299 and running up to $2,999.
Fantasy Sports Entertainment & Productions was founded earlier this year by Fantasy Sports Hall of Famer Rick Wolf, former Fox Sports programming VP Ed Bunnell, former CEO of the All England Club and Rugby Football Union Ian Ritchie, and Bill Enright, who previously was executive director of Sports Illustrated’s sports gambling and fantasy vertical.
Leagues that choose to honor the day and draft on Friday, Aug. 21 this year will make selections before most NFL teams have played their second preseason game. Aug. 21 falls on a Saturday in 2027 before landing on a weeknight the next several years. The national day returns to a weekend in 2032.
In the world of national days, National Fantasy Football Draft Day shares Aug. 21 with National Senior Citizens Day, National Spumoni Day and National Brazilian Blowout Day.
This week’s cover story chronicles the achievements of Fox Sports CEO and executive producer Eric Shanks during his time at the network, which includes being one of its first employees after it acquired NFL rights and working with the likes of Terry Bradshaw and John Madden.
The Commanders are the latest team to offer a value menu for season ticket holders, with 15 items costing $10 or less, reports SBJ’s Bret McCormick.
Lloyd Howell received nearly $6.8 million in salary and $7.2 million in total compensation/disbursements across three fiscal years for his brief and tumultuous two-year tenure as executive director of the NFLPA, writes SBJ’s Mike Mazzeo.
Range Sports is turning one of its past clients into a colleague, as former NFL player Nathan Peterman will work in its football division under longtime NFLPA agent Kyle Strongin, notes SBJ’s Irving Mejia-Hilario.
