XFL Files for Bankruptcy (Chapter 11)

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Three days after the suspension of XFL operations, the upstart league, which had promised “football first” and “less dropout, more ball”, filed for Chapter 11 on Monday.

The eight-team league, which canceled the second half of its first season last month in response to the COVID-19 epidemic, has almost evaporated with a 15-page document at U.S. Bankruptcy Court in Delaware.

“Unfortunately, as a new business, we were not immune to the harsh economic repercussions and uncertainties caused by the COVID-19 crisis,” said XFL in a statement.

The record estimated league liabilities between $ 10 million and $ 50 million – there are 1,000 to 5,000 creditors – against the same range of assets.

A list of the 25 largest unsecured creditors attached to the file provides an unusual snapshot of the expenses of a professional sports league, even though it only played a handful of games before its inaugural season ended.

Creditors include seven of the eight head coaches in the league, led by Bob Stoops of the Dallas Renegades ($ 1 million) and Marc Trestman of the Tampa Bay Vipers ($ 777,777). Winston Moss, who was coach and general manager of the Los Angeles Wildcats, owes $ 583,333.

Pep Hamilton of D.C. Defenders is the only coach who is not among the top 25 creditors.

Four creditors are listed as “site fees” for the use of stadiums in East Rutherford, NJ, Houston, Tampa Bay, Florida and Washington, DC, a $ 1.2 million television service company.

Other creditors include 47 Brand, a Boston-based clothing company, owed $ 846,000, and XOS Digital, video editing solutions for professional sports, at $ 887,752.

The XFL is owned by World Wrestling Entertainment CEO Vince McMahon through Alpha Entertainment LLC. According to the bankruptcy case, WWE held 23.5% of the class B shares of the league, while McMahon held all the class A shares and the rest of the class B shares.



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