Cam Newton supports the launch of an amateur league for high school football players.

• Brooklyn, New York-based company Overtimes launches a seven-on-seven football league called OT7.
• Overtime stated that it intends to cover expenses across the league with a portion of the $80 million it obtained in April 2021 from investors, including Jeff Bezos' investment firm and Drake.

Overtime is launching a new amateur sports league for high school football players.

In June, a seven-on-seven football league called "OT7" will be launched by a Brooklyn, New York-based company. This move follows the successful launch of a high school-level basketball league by Overtime more than a year ago. The football program will take place in Las Vegas from June 9 to June 12.

OT7, a company that aims to revolutionize the music industry, announced that it plans to use a portion of the $80 million it raised in April 2021 from investors including Jeff Bezos’ investment firm and global entertainer Drake to pay for expenses around the league. NFL quarterback Cam Newton is also an investor in OT7. The terms of Newton’s investment were not made available.

Dan Porter, Overtime's co-founder, revealed to CNBC that the company is intensifying its focus on amateur leagues.

He stated that our focus is on the most popular sports and expanding our reach in those areas where we can successfully amplify their impact.

Overtime distributes original sports content on social media platforms such as YouTube and Facebook. The company boasts over 50 million followers across its social media channels. Its revenue streams include indirectly aligning with brands by integrating them into online media content and making money from video ads, as well as through e-commerce with its apparel offerings.

Overtime raised more than $140 million since its launch in 2016, and Pitchbook estimated its valuation reached $280 million in March 2021. However, Porter declined to reveal specifics about the company's valuation, stating it's less than $1 billion.

Newton, a new investor, has coached amateur seven-on-seven teams for over 10 years and is familiar with seven-on-seven football camps, which could aid in OT7 operations.

Porter stated that while it's great to have someone with a large platform to validate your work and bring an audience, it's even better when that person is deeply involved in youth football and is passionate about it.

Newton considered starting a youth football league but ultimately decided that Overtime's muscle and the growing popularity of social media platforms made it the best option for giving kids the exposure they need.

Inside the OT7 football league

The Overtime Elite (OTE) basketball league, founded a year ago in Atlanta, offers a path for younger players to develop their brand and gain eligibility for the NBA draft without going through traditional high school and collegiate levels.

NBA scouts who spoke with CNBC about OTE said it is too early to speculate on its impact on the recruiting landscape.

Still, Overtime is growing its content deals around OTE.

In January, Meta struck a deal with Overtime Entertainment (OTE) to create virtual reality dunk shows for its Oculus devices. Although the terms of the deal were not publicly disclosed, Porter did not discuss the specifics of OTE's revenue. However, the bet is that Overtime can eventually license the content to a larger media company or streaming platform seeking a Generation Z audience.

Porter stated, "Our goal is to maximize value." He added, "Although Overtime's social media audience is not a significant consumer of live linear media, we believe they will eventually get there."

Last year, Overtime constructed a 103,000-square-foot facility in Atlanta's Atlantic Station district. This campus serves as the home for OTE participants and league staff. OTE offers financial literacy, life training, and traditional education categories. The organization guarantees players a minimum compensation of $100,000 and promises to cover an additional $100,000 in college expenses if they choose not to pursue a professional career.

College football players who participate in OT7 games will not receive payment for their play, but Overtime will cover expenses such as hotel rooms and meals, except for equipment costs.

OT7 will consist of up to 24 teams competing in eight games each, followed by a playoff round to determine a champion. The games will be played on 40-yard line segments of a regulated 100-yard NFL field, with each game lasting 20 minutes and tackling being restricted. Additionally, OT7 will allow for one-hand touch to stop play.

The league will aid in enhancing players' passing and route-running abilities. Quarterbacks will have six seconds to toss passes. Overtime anticipates that 500 to 700 athletes will participate in the league.

Newton stated that there has been an unexplored market for seven-on-seven for many years. He explained that kids have received scholarship offers based on their seven-in-seven film. He added that OT7 would offer "kids the exposure they need from visual content, regardless of their talent level. Our platform aims to showcase your skills."

Newton’s investments

According to Spotrac, Newton, 32, has made $133 million in his 11-year NFL career. Forbes also estimates that he has made $5 million in annual endorsements from companies including Beats, which he had an agreement with, but that deal expired in January 2020, the company told CNBC.

Newton's involvement in OT7 is his most significant investment, as he will run the organization while continuing to coach his C1N teams in the league. It is uncertain if the NFL quarterback earns profits from his teams through Overtime's business model.

Newton also owns equity stakes in plant-based food companies Daring Foods and Dream Pops. He also owns "Fellaship," a cigar bar located in Atlanta.

Newton, a three-time Pro Bowler and former NFL MVP who led the Carolina Panthers to the Super Bowl in 2016, stated that he only invests in things he can relate to personally. He emphasized that he is a responsible person who manages his finances wisely.

Whether he will play in the NFL again is uncertain, as he is a free agent for the second time in two years. When asked about his future, Newton neither confirmed retirement nor ruled it out.

Newton stated, "I currently have numerous connections, and I am confident that I can still excel in this game. However, I do not require this game to maintain a high standard of living."

He stated that his goal in a new team was to win, explaining that his competitive nature remains constant.