For those who remain unaware, Fan Controlled Football (FCF) is a professional football league played in the spring where fans call the plays. It was truly an innovative idea. The FCF is 7-on-7 football, and each game consists of 20-minute halves with a six-minute halftime. There is no kicking or punting, and fans vote on all offensive players in real time while deciding the outcomes of instant replay reviews.
The league, which debuted in 2021, is going to be vastly different in 2023.
In a recent article by Ben Fisher in the Sports Business Journal, it was revealed that the Fan Controlled Football is undergoing a significant change in its business model. Their co-founder is now pivoting to a technology licensing model and hoping to sell franchises to fund a restart of the league after a cash crunch killed this year’s planned season, according to Sports Business Journal.
The co-founder stated they raised $55 million in venture capital, including a $40 million Series A round in January 2022 that was intended to fund two additional years, but the cash essentially dried up and now a third season will not be played.
“Given the capital markets currently — and quite frankly, nobody’s going to tell you it’s not capital-intensive to run a sports league — we thought maybe the better idea in this environment is to focus on the technology and the platform for now”.
Sohrob Farudi, the co-founder and CEO of Fan Controlled Sports & Entertainment, acknowledged the financial challenges:
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“I think we pretty quickly realized that the big growth road, which I’d say even six months ago was pretty achievable, was going to be next to impossible”.
The biggest silver lining is the interest generated in the technology behind their fan voting tools. The company is nearing completion of deals to incorporate fan-input elements into other sports, including basketball, auto racing, and golf.
“Some we’ll co-own and co-produce, and some will be existing leagues we’re adding interactivity to”.
Aside from the technology license, FCF is considering a franchise ownership model as a means to relaunch the league. They are looking to sell franchises for high six figures to lower seven figures, aiming to secure eight buyers.
Currently, the FCF features eight teams owned by some of the biggest names in sports and entertainment, including Richard Sherman, Austin Ekeler, Rachel Lindsay, Quavo, Renee Montgomery, Marshawn Lynch, Bored Ape Yacht Club, Druski, and Steve Aoki.
