The other shoe has apparently dropped for the XFL, as its parent company Alpha Entertainment LLC has declared Chapter 11 bankruptcy.
“The XFL quickly captured the hearts and imaginations of millions of people who love
football,” the company, based in Stamford and owned by WWE chairman and CEO Vince McMahon, declared. “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,” the statement added.
The corporation reported assets valued in the $10 million to $50 million range, and has an estimated range of 1,000 to 5,000 creditors.
The XFL suspended play in mid-March, although the WWE has continued to hold events, albeit without live audiences. Last week the XFL announced it was canceling its inaugural season and laying off all team and league employees.
Leaving the door slightly open for another XFL resurrection, Alpha said that McMahon “has recused himself from the consideration and approval of any post-petition financing since he is a potential source of such post-petition financing.”
McMahon had said he was prepared to invest as much as $500 million – five times what he invested in the league’s first incarnation in 2001 – over the new-look XFL’s first three years. In March 2019 he sold $272 million worth of WWE stock, most of it to fund the football league.