Several months after getting caught up in the now infamous FIFA scandal, Traffic Sports is reportedly nearing a deal to end the company’s five-year ownership of the Carolina RailHawks.
Traffic Sports is reportedly set to sell the NASL club to Raleigh’s Stephen Malik, an entrepreneur who has specialized in healthcare information technology. The sale can reportedly be finalized as soon as next week, and Malik has already been approved by the NASL Board of Governors.
In 2010, Malik sold his company Medfusion to Intuit for $91 million, although the UNC-Chapel Hill alumnus reacquired the company three years later and currently serves as Executive Chairman.
Malik’s reported purchase from Traffic comes in the wake of the FIFA scandal that saw the indictment of over a dozen officials, including Traffic president Aaron Davidson. Since,Brazil-based Traffic Sports International Inc. pled guilty to wire fraud conspiracy on May 14, while José Hawilla, owner and founder of Traffic Sports Group, agreed to divest his holdings in Traffic Sports and forfeit over $151 million.
In the aftermath of the scandal, Davidson was suspended by the NASL Board of Governors, who also suspended business operations with Traffic. At one point, Traffic owned the RailHawks, Fort Lauderdale Strikers and Atlanta Silverbacks.
The RailHawks return to action Saturday in a clash with the Tampa Bay Rowdies.
What do you think of the proposed sale? Expect more from the RailHawks in the coming years with a new owner?
Share your thoughts below.
Rebrand maybe?
A real live local team owner (guy even went to college locally … at UNC) … and one that is NOT caught up in an international bribery scandal? Ah, this is a good day … for the Railhawks and NASL.
Boris Jerkunica is a local business owner that went to college locally as well (and still holds record for goals scored in a season). He’s also known as the former owner of the Atlanta Silverbacks. Checking the boxes doesn’t always work out, but I’m hoping for the best for Carolina.
Good for the NASL.