XFL has filed for Chapter 11 bankruptcy

By Anthony Caruso III | Publisher

There was so much hope for the XFL this spring. However, due to the coronavirus pandemic that has wrecked havoc in the United States economy and sports world since March.

As a result, days after saying that the league was shutting down, the XFL has filed for Chapter 11 bankruptcy. The filing was made on Monday in Delaware.

Football (Photo by Pixabay)

Vince McMahon — who owned the league through Alpha Entertainment — listed that his assets and liabilities were in the range of $10 to $50 million. Most of the creditors were coaches, as seven of the eight coaches were listed in the filing.

“The XFL quickly captured the hearts and imaginations of millions of people who love football,” the league said in a statement. “Unfortunately, as a new enterprise, we were not insulated from the harsh economic impacts and uncertainties caused by the COVID-19 crisis. Accordingly, we have filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code.

“This is a heartbreaking time for many, including our passionate fans, players, and staff, and we are thankful for them, our television partners, and the many Americans, who rallied to the XFL for the love of football.”

This is the second-time that McMahon failed has a business owner in football. The Chairman and CEO of World Wrestling Entertainment also failed in 2001 with the original XFL that was also part owned by NBC.

On Friday, the league announced that they were ceasing operations. Also, it was announced at that same time, that they were laying off nearly all of their employees.

There is a possibility that the league could be sold, according to ESPN, during this bankruptcy process.

The league paid its employees through April 12th. In addition, the employees also received accrued vacation time.

The XFL also plans on refunding all previously purchased ticket sales for Week 6 games and beyond.

The league shut down following Week 5 due to the coronavirus back on March 12th. An employee for the Seattle Dragons, one of the eight teams in the league, tested positive for the coronavirus a few days after the league was shot down.

McMahon announced that the league would return in January 2018. This time around, it was more about football than the previous version.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.