HBCU's $100 Million Market Play To Private Investors Is Pioneering And Brilliant

Howard University's head basketball coach is leveraging the Howard University brand asking for a $100M investment.

Mar 16, 2023; Des Moines, IA, USA; Howard Bison head coach Kenny Blakeney reacts after a play against the Kansas Jayhawks during the first half at Wells Fargo Arena. Mandatory Credit: Jeffrey Becker-USA TODAY Sports / Jeffrey Becker-USA TODAY Sports

HOUSTON — HBCU sports is a business. Inside are several recognizable and extremely marketable brands. Grambling State is a brand. Jackson State is a brand. Florida A&M, Southern, and Howard are also significant brands. Locate investment partners in these brands is the challenge — for years.

Howard's head basketball coach, Kenny Blakeney, is keenly aware of his program's unique market value and the substantial return on investment it can deliver. He is determined to establish partnerships with private equity firms or corporations and is seeking a $100 million investment in the Bison basketball program.

According to his Washington Post interview, Blakeney seeks investors for a "33 percent stake in the Bison." The Post's Jesse Dougherty says, "The Howard University men's basketball team is for sale."

His opening statement shouldn't come as a surprise. What is surprising is that many head coaches, athletic directors, and administrators need to acquire knowledge and aggressively market their brands.

Mar 19, 2024; Dayton, OH, USA; Howard Bison head coach Kenny Blakeney coaches in the second half against the Howard Bison at UD Arena. Mandatory Credit: Rick Osentoski-USA TODAY Sports / Rick Osentoski-USA TODAY Sports

BLAKENEY'S STRATEGY EXTENDS DEION SANDERS' BLUEPRINT

The blueprint for Blakeney's proposal's success can be seen in the recent example of Deion Sanders and the Jackson State football program from 2020 to 2022. During this time, businesses began to recognize the value of partnering with Historically Black Colleges and Universities (HBCUs). This was due to Coach Prime's marketability and Jackson State's success. There are some, not many, HBCU who starting to grasp the possibilities in the current marketplace for their brands. Blakeney is one of them.

Hardy Pelt, Chief Revenue Officer (CRO) at Urban Edge Network, informed HBCU Legends, "As long as advertisers can prevent HBCU coaches and administrators from understanding the true value of their sports programs, they will continue to struggle." He elaborated, "Our HBCU+ app enables conferences or schools to take control of their content by highlighting the positive aspects of their sports programs and, in turn, generate much-needed revenue."

Jackson State head coach Deion Sanders is seen during an NCAA college football game against Mississippi Valley State in Jackson, Miss., Saturday, Sept. 24, 2022. Tcl Jsu Vs Ms Valley244 / Hannah Mattix/Clarion Ledger / USA TODAY NETWORK

Sanders brought in entities such as Aflac and Walmart to help fund initiatives for Jackson State's football team. Coach Prime understood his and his team's market value. In an interview with 60 Minutes, SWAC Commissioner Dr. Charles McClelland confessed what he learned about Sanders being a marketable brand.  

"I've been around stars before. This is the first time that I've been around a superstar, and I really did not realize the difference." He explained to Bill Owens, "A superstar can enter any room, can enter any board room. Coach Prime is a business person. Coach Prime opened doors for the Southwestern Athletic Conference that we could not get into."

The attention Sanders has brought to HBCU football has translated into a revenue spike for his league, the Southwestern Athletic Conference.

- Bill Owens

Blakeney made the right play:

1. He believes in his student-athletes, program, and the product Howard can offer a partner.
2. He's not waiting for approval to secure funds for the school to improve its facilities and arena.
3. He knows the infusion of investment money would allow Howard to attract and keep top-rated recruits via NIL.

Dougherty mentioned that Coach Blakeney is actively involved in pitching his proposal. He met with a private equity firm in June and then went to Las Vegas for a charity golf event in mid-July, where he discussed the proposal with private equity investors. His proposal involves an equal revenue share, with one-third going to Howard, one-third to the basketball program, and one-third to the owners.

Nov 7, 2022; Lexington, Kentucky, USA; Howard Bison head coach Kenneth Blakeney celebrates during the first half against the Kentucky Wildcats at Rupp Arena at Central Bank Center. Mandatory Credit: Jordan Prather-USA TODAY Sports / Jordan Prather-USA TODAY Sports

PAST LEGENDS IN HBCU SPORTS BROKERED DEALS

His approach has been brilliant. Legendary football coaches Eddie Robinson (Grambling State), John Merritt (Tennessee State), and Jake Gaither (Florida A&M) secured the funds to run their programs. Although it's not new, taking the 'Howard Basketball Pitch Deck', a comprehensive presentation outlining the program's history, achievements, and future plans, nationwide to meet with financial power brokers is avant-garde.  

Upon exiting the HBCU sports world, Coach Prime profoundly said, "I gave the blueprint." Coach Blakeney is taking the "corporate" approach to sharing the "Gospel" of Howard Bison basketball with willing investors.

Despite recently securing broadcasting deals with HBCU GO, Urban Edge Network's HBCU+, ESPN, and other broadcast entities, the question remains: Can football and basketball programs survive without direct deals like Blakeney's proposal?

Brands like Howard University basketball and all HBCU programs have the potential for significant growth. Relying solely on broadcasting revenue shares becomes a waiting game. Instead, coaches must become market-clever and actively seek outside investors to unlock this growth potential for their programs.

Blakeney concluded the conversation with Dougherty, emphasizing the urgency of the situation. He stated, "We're just at the beginning of it. But I do feel like there is a short window of opportunity because the speed that NIL is moving, the transfer portal is moving, the professionalism of our business is happening. This s--- has to take place fast. There has to be some conversations."

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