Monday, April 13, 2020

XFL Declares Bankruptcy, Reportedly Go Up For Sale (UPDATED)

XFL Declares Bankruptcy
Following the news last week that the XFL had suspended operations, the league has also filed bankruptcy.



Vince McMahon's second shot at a professional football league was forced to cease all ongoing operations due to the ongoing global coronavirus (COVID-19) pandemic. The league canceled the remainder of the season after the fifth week of play and, while the original plan was for the league to return for the 2021 season, those close to the league said it would not come back for a second season.

The death of the fledgling league seems to be official as a spokesperson for the XFL spoke with a reporter with TMZ Sports and said the league had filed for Chapter 11 bankruptcy.
"The XFL quickly captured the hearts and imaginations of millions of people who love football," the spokesperson said. "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 to them, our television partners, and the many Americans who rallied to the XFL for the love of football."
TMZ Sports reported the league lost out on "tens of millions in revenue" due to the rest of the regular season and planned playoff games being canceled and that the filling occurred when it did to maximize the return to investors. Among the creditors listed in the filing include XFL head coaches Bob Stoops ($1,083,333.33), Mark Trestman ($777,777.78), Jonathan Hayes ($633,333.33) and Winston Moss ($583,333.33).

UPDATE:

A source close to the league revealed to The Hollywood Reporter that the league plans to maximize the value of its assets in order to pay creditors and has begun the process of seeking a buyer.

The league reportedly lost "tens of millions in revenue" due to canceling the season. The first iteration of the league failed due to increasingly falling ratings and the new league seemed to be suffering the same fate. The first week of games averaged 3.12 million viewers and fell to 1.16 million during the final week.

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