According to the Action Network’s Darren Rovell via Twitter, “In new court filing, Vince McMahon says he won’t be bidding for the XFL assets”.
We have gained access to the filings, and after reading through them, we have gained some highly important information. On May 19th, and reported by us, McMahon submitted a proposal that the XFL creditors pay a $3.5 million refund to season-ticket holders for games that weren’t played. The creditors objected, and McMahon has since withdrawn the proposal.
Read also, Speculation that McMahon could buy back XFL has gaping holes
As to the point, McMahon stated the following about removing himself from bidding on the league:
“Filled to the brim with inflammatory rhetoric and unsubstantiated accusations that the Debtor rigged the Bidding Procedures in favor of Vince McMahon, the Committee’s Objection is irresponsible and value-destructive. Indeed, in response to the needlessly vitriolic personal attacks in the Committee’s Objection, McMahon has chosen to bid the Debtor good luck and simply walk away from any potential bid for the Debtor’s assets.”
On page 7 of the document titled DK000160 below, it also states that the creditors had placed an objection to allowing McMahon placement of a bid, “unless McMahon were also to make a cash bid that would provide a ‘meaningful distribution’ to unsecured creditors.” That objection was denied today, because of McMahon’s deposition and statement rendered it moot.
The sale has been extended from the July 15th, 2020 date, to the first week of August (from 90 days from filing, to 115).
More from this is available below, but the point is clear. McMahon was not trying to circumvent the system and his debts by filing for Chapter 11. Speculation was that by placing himself in perfect position to re-purchase the league at a “fire-sale” rate, he would be able to keep the league, and not have to pay to keep the business active. Which would not have been good business move in the first place.
Read Also, XFL drawing interest from potential buyers
Anschutz Entertainment Group also filed a notice of appearance in the case today, which is somewhat interesting. Phillip Anschutz, was part of the group that founded the MLS, whose infrastructure is similar to that of the XFL. He is also principle owner of the NHL’s LA Kings, and minority owner of the Lakers.
AEG is a listed creditor in many jurisdictions, so this could just be the group officially requesting access to the documents. But, it cannot be overlooked.
There’s been speculation as well that one of McMahon’s family members could step in to buy the league. But if he does want to keep the perception that he is not trying to skirt debt owed, but keep control of the league, this would not be an option either. It seems that he just wants out.
I’ve been steadfast on the fact that this is not your standard filing by a company. This was in fact a sale, and not a restructuring of debt. More will be revealed as time goes on, so stay with us as the story progresses.
Court filings are below:
