David and Matthew Katz are two well-known businessmen from New York City. They are being likened to the Koch brothers (minus the political wrangling and billion-dollar inheritances) by many.
Later this year, the Katz brothers will be debuting their new sports franchise, the Gozo Gladiators, by way of a pre-season tournament in Ghana. It is no secret that many sports franchises are started with borrowed money, but few are started with A/R financing like this one was.
It happened like this: in 2013 Gozo had opened itself up to having a new football team. In order to be considered, businessmen had to put a good faith deposit of $250,000 down, which would have been refunded had they not been selected. The reason for the good faith deposit was because the Maltese island and its fans had been burned before with an underfunded team that showed little promise to win a championship.
Those who know the Katz brothers know that they play to win, drawing first blood on any deal when necessary, but they did not have $250,000 in cash due to other deals they’d been involved with. What could they do?
They contacted Christopher Pascale – an accountant they’d met after reading an interview of him. He reviewed their books and saw that they had three deals that would close in less than six months, all of which would net them more than $250,000. Based on this, he drew up a proposal to three different bankers, informing them that they were competing with other lenders to get the Katz brothers’ business and that it was crucial they act diligently and in great haste.
Four days later, the Katz brothers were in contention for the rights to the sports franchise, and the rest, as they say, is history.