Sports league Major League Soccer, also known as MLS, has become the first-ever sports league to participate in a commercial transaction with Black-owned banks.
Working alongside nonprofit organization National Black Bank Foundation, or NBBF, MLS has borrowed a loan of $25 million from various different Black-owned banks in an effort to combat the wealth gap between white and Black Americans. The banks involved include the Citizens Trust Bank, Carver Federal Savings Bank, Alamerica Bank, Carver State Bank, Columbia Savings & Loans, Mechanics & Farmers Bank and Unity National Bank.
“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,” said the league’s commissioner, Don Garber, in a statement on the MLS website. “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.”
By borrowing from these banks, MLS will help them prosper through paying fees and interest. These large sums of money will go towards the banks’ total capital, allowing them to issue loans and mortgages to Black families or business owners.
MLS will also help get information on economic empowerment out to individuals part of NBBF, 100 Black Men of America, INC. and the National Coalition of 100 Black Women and Black Players for Change.
“Major League Soccer has raised the bar for corporate America with this transformative partnership,” said Ashley Bell, co-founder and board member of NBBF, in a statement. “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.”
So far, the racial wealth gap in the U.S. has failed to close despite efforts. According to a report by the Federal Reserve, the gap is still the same as it was in the 1960s with Black households earning an average of $24,100 and white households earning an average of about $188,200.
Contributions to the wealth gap include disparities in loans. According to a 2021 report by the National Association of Realtors, 43% of Black households in the U.S. have an average of $40,000 in student loans to pay off. Meanwhile, only 21% of white households have student loans worth an average of $30,000. As for mortgages, 10% of Black households who ask for one are denied while only 4% of white applicants are turned away.
The new partnership between MLS and NBBF is another step taken by the league to diversify the sport. In October 2020, they started several programs such as the MLS Diversity Committee to help bring new opportunities and increase representation for underrepresented groups. In December 2021, MLS also changed its hiring process, giving Black applicants more opportunities to be hired in first-team sporting positions.
