Youth Flag Football Operator RCX Acquired by Private Equity Fund Involving NFL Stars
On June 4, U.S. private equity firm Brand Velocity Group ("BVG") announced it had completed the acquisition of RCX Sports ("RCX") from private equity fund Raine Partners. Additional terms of the transaction were not disclosed.
RCX was founded in 2019 by former NFL player Izell Reese. From its inception, it became the official operating partner of the NFL FLAG league, the NFL's youth flag football program. By expanding league operations, equipment support, local operator empowerment, and national events, it drove participation from 500,000 to over 800,000 today.
Since then, RCX has also secured exclusive operating rights for other sports leagues. It now manages the licenses of the official youth sports programs of the NFL, NBA, WNBA, MLS, NHL and MLB. The company makes money distributing sports products such as uniforms and equipment and servicing local parks and recreation centers, with 150 employees.
It is reported that BVG partner and former NFL New York Giants legendary quarterback and Super Bowl champion Eli Manning was a key figure in facilitating this deal. Manning has long been a strong advocate for flag football. In a CNBC interview, he said he served as an assistant coach for his daughters' teams and is pushing to make flag football an official varsity sport for both boys and girls in middle and high schools.
Above: Eli Manning
BVG focuses on consumer and sports-related business investments. Its portfolio includes youth team sports equipment company SCORE Sports, New York lifestyle jewelry brand The GLD Shop, fashion apparel group Jaya Apparel Group, and outdoor grill brand MAGMA.
Flag football’s popularity is exploding in the U.S. According to USA Football research, the number of boys and girls ages 6-17 playing flag football increased 38% from 2014-23, reaching a peak of more than 1.6 million in 2024. In October 2023, flag football was officially included in the 2028 Los Angeles Olympics (for both men and women).
Founder Izell Reese, a former NFL player, has nearly 20 years of experience in youth football-related organizations and businesses. He is very optimistic about the future of flag football. He believes that unlike tackle football, flag football games can be played at any time, and this multi-seasonality not only allows teenagers who want to work on their football skills but also enables more children to participate and experience the fun of flag football.
He said, "I jokingly tell people a lot of time when I’m trying to explain it that we’re like Little League Baseball meets Fanatics. The pro leagues’ (intellectual property and trademarks) all go through us when a local rec organization wants to run these programs.”
Above: Izell Reese
In addition to financial investment, BVG will support RCX in further expanding strategic and commercial partnerships, strengthening connections between athletes and professional leagues, and enhancing its operational resources.
The transaction received support from a broad group of strategic investors, including Hamilton Lane's Impact platform, St. Cloud Capital, Darco Capital, and Three Ocean Partners, as well as athlete partners such as Emmitt Smith, Larry Fitzgerald, and Jameis Winston.
Following the transaction, RCX will continue to operate under its existing brand, and founder and CEO Izell Reese and the current management team will remain in place.
| Sources: Official press release, CNBC, Forbes, USA Football
| Image credits: RCX official website, USA Football official website