CHICAGO (Feb. 8, 1999) -- The National Football League has agreed to an exclusive option to purchase an equity interest in the Arena Football League, NFL Commissioner Paul Tagliabue and Arena Football League Commissioner C. David Baker announced jointly today.
The option can be exercised over the next three years and would give the NFL a minority ownership interest (up to 49.9%) in the Arena Football League and a voice in the operation of the league. Exercising the option is subject to the approval of NFL owners (24-31).
"Our goal is to support football at all levels," said Commissioner Tagliabue. "An interest in the Arena Football League would enhance our stake in the future of the game, both in the United States and internationally."
"The NFL is the preeminent sports organization in the world," said Commissioner Baker. "It is an honor to work together to further the vision of year-round, worldwide football for a new generation of fans."
The goal of the association between the two leagues is to ensure the future of football at all levels in four ways: 1) to promote interest in football, especially in small to medium-sized markets; 2) develop football as a year-round sport; 3) develop and grow football internationally; and 4) support youth football and grass-roots participation in the game.
The alliance between the NFL and its unique summertime complement -- Arena Football -- began on June 3, 1998, when the AFL Board of Directors approved the application of New Orleans Saints owner Tom Benson to place a team in New Orleans in 2000. Mr. Benson was the first NFL owner to apply for and purchase an Arena Football League membership.
NFL bylaws previously prohibited NFL owners from investing in other football leagues or teams, but an amendment to NFL rules was adopted on May 22, 1998, allowing an exception for Arena Football League teams in an NFL club's own market. Mr. Benson was a principal voice in the effort to secure the amendment, which could lead to more NFL owners owning Arena Football League teams.
Neal Pilson, television consultant to the Arena Football League and former president of CBS Sports, played an instrumental role in developing the relationship. "The agreement with the NFL will make the Arena Football League one of the marquee properties in sports," Pilson said. "The cost of acquiring a team has already increased from $500,000 to $5,000,000 in the past three years and I expect team values will continue to escalate as a result of this new association with the NFL."
The Arena Football League begins its 13th season in April having eclipsed the one million-attendance mark three straight seasons. The AFL's title game -- ArenaBowl XII, won 62-31 by the Orlando Predators over the Tampa Bay Storm on August 23, 1998 -- made its national network debut last season on ABC's Wide World of Sports and was viewed by over two million fans. Fifteen teams will compete in 1999, including the expansion Buffalo Destroyers. Los Angeles and New Orleans embark on their inaugural campaigns in April 2000.
In 1981, while watching a soccer match at Madison Square Garden, Jim Foster, then a marketing executive with the NFL, drew the outline of an indoor football field over a hockey rink on a manila envelope and penciled in notes on what would evolve into a new and exciting adaptation of America's favorite sport.