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Professional football

Las Vegas Posse on the Brink of New Ownership: A Shift to Los Angeles?

Strategic Insights

— 1 min read

A potential takeover of the troubled Las Vegas Posse, a Canadian Football League team, has been agreed upon by the team's investor group and a new ownership entity led by former NFL player Phil Johnson, who plans to relocate the franchise to Los Angeles. The deal, subject to a binding letter of intent, would grant Johnson's group a 54% stake in the company and inject $2.5 million into the team. However, the deal remains non-binding, and other potential buyers could still emerge to acquire the franchise.

Key Takeaways:

  • The Las Vegas Posse investor group has agreed to sell 3.13 million new shares to Phil Johnson's group for $2.5 million.
  • The transaction would grant Johnson's group a 54% stake in the company.
  • The deal is subject to a binding letter of intent, which has not been signed, and other potential buyers could still acquire the franchise.
  • Phil Johnson's group specializes in providing financial services and development services to minority-owned companies.
  • Johnson, a graduate of Washington State University, played in the NFL for seven seasons.
  • Las Vegas Major League Sports is attempting to settle with its unsecured creditors to allow the Johnson transaction to take place.
  • The CFL paid David MacDonald $90,000 to determine if Bruce Firestone was financially stable enough to run the Ottawa Rough Riders, but Firestone's administration has been criticized for late bill payments, including players' salaries.
  • CFL commissioner Larry Smith and chairman John Tory will visit Firestone today and could revoke the Ottawa franchise if they're not satisfied with Firestone's financial situation.

Statistics:

  • $2.5 million: The amount of investment Johnson's group will inject into the team.
  • 3.13 million: The number of new shares being sold to Johnson's group.
  • 54%: The percentage stake Johnson's group would hold in the company after the investment.
  • $90,000: The amount the CFL paid David MacDonald to assess Bruce Firestone's financial stability.
  • 7 seasons: The length of time Phil Johnson played in the NFL.
  • 2005: Not mentioned in the original article, but implied as the time period in which the events unfold.

Sources:

  • [No specific source mentioned in the original article]

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