MLS Launches Partnership With National Black Bank Foundation

Major League Soccer’s partnership with the National Black Bank Foundation
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Photo: Major League Soccer

Major League Soccer today announced that it will leverage a historic $25 million loan from a syndicate of Black banks, marking the first time any sports league has participated in a major commercial transaction exclusively with Black banks. Facilitated by the nonprofit National Black Bank Foundation (NBBF), the partnership is the latest significant step in a series of ongoing efforts by MLS in the Diversity, Equity and Inclusion space.

“Major League Soccer’s partnership with the National Black Bank Foundation is a tangible step in the efforts to close the racial economic gap in the United States, and it’s the right business decision for us,” said MLS Commissioner Don Garber. “As a league, we continue to increase our initiatives in support of racial justice. In order to make a genuine impact, economic justice must be part of the equation. This transaction with a syndicate of community-focused Black banks is an important measure, and it is our hope this will raise awareness of the importance of Black-owned banks and their impact on the economy.”

The transaction announced today, coupled with the league's strong credit rating, will grow the banks' capital cushion through fees and interest earned, creating additional capacity for new lines of credit for home and small business loans in communities of color across the country.

In facilitating the loan, the NBBF organized a syndication team led by Atlanta-based Citizens Trust Bank and New York-based Carver Federal Savings Bank.

"Major League Soccer has raised the bar for corporate America with this transformative partnership," NBBF co-founder and general counsel, Ashley Bell, said in a release. "If other leagues and major corporations follow the MLS model, lives of Black families all across this country will change for the better because their local Black bank will have the capital resources to approve historic numbers of home and small business loans."

Historical context

Black banks fuel social mobility in the United States by connecting borrowers of color to capital. However, the sector's impact has been limited by a chronic, acute undercapitalization that has restricted the flow of credit it could create for underserved borrowers.

According to the Federal Reserve, the Black-white economic gap in the United States has remained virtually untouched since the Civil Rights Movement. Historical efforts by Black families to escape the continuum of poverty by building intergenerational wealth, primarily through homeownership and small business entrepreneurship, have been thwarted by racialized credit access. In 2020, lenders denied Black mortgage applicants at a rate 84% higher than white borrowers.

Transacting major deals with Black banks as MLS has done is one step of many in erasing America's racial wealth gap. These partnerships diversify Black banks' portfolio risk and grow their capital capacity to create and extend credit and other wealth-building services to Black borrowers.Read more.

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