FC Alliance (Knoxville)

Overview

FC Alliance is East Tennessee’s oldest and largest competitive soccer club, founded 2008 and headquartered in Knoxville. Operated via the 501(c)(3) “FC Alliance Soccer Club” (reorganized/current entity 2021, EIN 85-2720953). One of only two Tennessee clubs with ECNL Girls admission at the time of its invitation.

Financials

  • Revenue (FY2024): $2,253,828 (HIGH — ProPublica)
  • Expenses (FY2024): $2,266,796
  • Net Income: -$12,968 (net loss)
  • Net Assets: -$177,133 (NEGATIVE — liabilities exceed assets)
  • Trend: Revenue grew $817K (2021) → $2.25M (2024); three consecutive years of operating deficits; 2023 loss was -$234K
  • Entity: FC Alliance Soccer Club, EIN 85-2720953, 501(c)(3)

Negative Net Assets

FC Alliance has operated at a deficit three of its four filing years as the current entity. Net assets have gone from +$280K (2021) to -$177K (2024). Financial stress signal — may be receptive to capital/platform partnership.

Teams & Players

  • Competitive boys and girls programs
  • Serves East Tennessee / Knoxville metro

League Affiliations

Facilities

Not specifically identified in this research — gap.

Leadership

Not verified — gap.

Competitive Position

Knoxville is a mid-sized competitive market (~870K metro). FC Alliance holds ECNL Girls as its flagship. Direct competition from:

The competitive dynamic has intensified since One Knoxville SC formed in 2023 via the Crush + Reds merger — FC Alliance’s financial stress coincides with this market shift.

Investment Thesis

High-interest acquisition target in East Tennessee. Negative net assets plus three years of deficits is a signal of distress that may make FC Alliance receptive to a capital-backed platform partnership or acquisition. ECNL Girls credential is the strategic asset.

Considerations:

  1. Distress discount: Valuation should reflect the negative equity position
  2. Turnaround thesis: With PE discipline + capital + cross-market efficiencies, the $2.25M revenue base could be run profitably
  3. East TN white space: Gives platform geographic breadth beyond Nashville

Open Questions

  • What drove three consecutive years of deficits? (Facility lease, coach costs, program overexpansion?)
  • Leadership — board composition, ED identity
  • Relationship with One Knoxville SC’s rise — lost players?
  • Any existing merger or partnership conversations?
  • Player count and revenue composition (fees vs sponsorship)