By Gary J.Nix
- Major League Soccer is the first professional sports league to partner with Black banks by leveraging a $25M loan
- Black-owned banks collectively control less than 1% of U.S. banking assets
The link between sports and culture is strong, always has been, and Major League Soccer (MLS) has leveraged a $25 million loan from Black-owned banks as a step in narrowing the racial wealth gap. Many times, sports and entertainment insiders have proven the ability to positively affect American society. MLS intends for this partnership with the National Black Bank Foundation to raise awareness of Black-owned financial institutions’ importance and impact on the nation’s economy.
Why This Matters: Thankfully, a swift impact can be felt from this partnership. In a league where 20% of players are Black, MLS leveraging this loan will allow Black-owned banks to grow capital by collecting fees and interest. In turn, these banks can then lend funds to small businesses and make other loans in the communities that they serve. Black athletes and entertainers including Serena Williams, Kevin Durant, and Patrick Mahomes have all acquired stakes in competitive MLS clubs.
MLS Commissioner Don Garber stated, “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.”
Black-owned banks have proven to be intentional in helping their communities. For example, at a typical Black-owned bank, 67% of mortgages are given to Black households. At the average non-Black-owned bank, that number is less than 1%. This suggests an increase in sustainable Black-owned banks would be an important element to narrowing the racial wealth gap. Hopefully, more companies and organizations will consider banking Black as one way of showing their work regarding all those promises they made during the summer of 2020.
Situational Awareness: It is clear that many of the systems presently in place uphold the racial wealth gap. For instance, as of 2019, the median white household had 8x more wealth than the median Black household. Combine this with a lack of trust in banks from Black people, the recurrence of this racial wealth gap is inevitable.
CBx Vibe: “Money In The Bank” Lil Scrappy & Young Buck
