The United States Football League (USFL), which operated from 1983 to 1985, was not a haphazard creation but the result of a meticulously crafted strategy known as "The Dixon Plan." Conceived by New Orleans businessman David Dixon in 1965, this comprehensive blueprint aimed to establish a professional football league that would thrive by playing in the spring and summer, thus avoiding direct competition with the National Football League (NFL) and college
football. Dixon, a key figure in bringing the New Orleans Saints to his city and in the construction of the Louisiana Superdome, spent years researching and refining his ideas. His plan was designed to address the common pitfalls that had plagued previous attempts to challenge the NFL's dominance, focusing on financial stability, market presence, and media exposure.
The Vision Behind the Plan
Dixon's vision for a spring football league was rooted in observations of evolving trends in American sports and technology. By the 1950s, football was becoming increasingly lucrative, and technological advancements like artificial turf and improved natural grass maintenance in the 1960s made it more practical for football and baseball to share facilities during the same time of year. The growing influence of television also played a role, as did the decline of minor league baseball, which freed up large stadiums suitable for football. Furthermore, the expansion of college football led to the construction of many large, football-specific stadiums in cities without NFL teams, presenting ready-made venues for a new league.
Over 15 years, Dixon diligently studied the histories of the American Football League (AFL), a successful NFL challenger, and the World Football League (WFL), which struggled financially. In 1980, he commissioned a study by Frank Magid Associates, which yielded positive results for the viability of a spring and summer football league. This research informed the core tenets of his plan: securing early television exposure, implementing heavy promotion in home markets, and ensuring that team owners possessed the financial resources and patience to absorb initial losses, which Dixon believed were inevitable until the league found its footing. He also meticulously assembled a list of prospective franchises located in markets that would be attractive to potential television partners.
Pillars of Financial Stability and Market Presence
A critical component of The Dixon Plan was ensuring the financial robustness of the league and its teams. Dixon was acutely aware that many previous football leagues had failed due to underfinanced teams unable to cover basic expenses, a problem that plagued the WFL. To counteract this, the USFL under Dixon's guidance implemented stringent financial requirements for prospective owners. They were subjected to detailed due diligence processes and had to meet strict capitalization requirements. Furthermore, each owner was mandated to post a $1.5 million letter of credit, intended as an emergency fund, to guarantee that teams could maintain a credible product on the field.
The plan also emphasized strategic market placement. Dixon aimed to secure NFL-caliber stadiums in top television markets to entice networks into offering lucrative television deals. When the USFL was formally announced in May 1982, Dixon had secured commitments from 12 cities. Notably, nine of these cities already hosted NFL teams, and three did not. All but two of these initial 12 teams were located in the top 13 media markets in the United States at the time. This focus on major markets was crucial for attracting the television revenue and exposure that Dixon believed were essential for the league's success. The league successfully signed contracts with both ABC and ESPN, securing roughly $13 million in 1983 and $16 million in 1984, including $9 million annually from ABC, with options for increased payments in subsequent years.
Challenges to the Plan's Execution
Despite the thoroughness of The Dixon Plan, its execution faced significant hurdles. Problems arose even before the teams began play, with some franchises encountering financial instability. Pressure from the NFL made it difficult for some USFL teams to secure stadium leases in venues shared with NFL teams, forcing them to find alternative sites or relocate. A major deviation from the plan's spirit was the lack of a hard salary cap. Although there were pledges to control costs, some teams rapidly escalated player payrolls to unsustainable levels, engaging in bidding wars for star players against both NFL teams and other USFL franchises. This forced other owners to spend more to remain competitive, undermining the financial prudence Dixon had envisioned. While some franchises adhered to the plan and remained stable, others suffered repeated financial crises, leading to numerous ownership changes, mergers, and relocations during the league's short existence.
