In a stunning move, particularly so since announcing the complete shutdown of all operations and firing all employees via a conference call and emails, the XFL has filed for Chapter 11 bankruptcy in Delaware.
According to documents from the filing, released first by Darren Rovell of the Action Network, Vince McMahon owned 100% of the class A shares. While it has been confirmed, the WWE owned 23.5% of the class B shares. McMahon held the remaining 76.5% of class B. Class A shares are usually given to the management of the group, and have more voting power than class B.
Assets and liabilities are shown in the $10M-$50M range.
In the release, current creditors are:
Bob Stoops ($1M), Marc Trestman ($777K), Ticketmaster ($655K), other coaches ($583K) and MetLife Stadium lease ($368K).
Another interesting bit of information from the filing, and sources from an @XFLNewsHub article, “Mr. 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.“
If there was any hope of the league returning, even after the April 10th announcement of the shutdown, it’s gone now.
The league closed its doors amid the COVID-19 pandemic. Citing the issues that ending the season midway through and the apparent inability to plan for the 2021 season brought as the causes.
It’s a surprise to many, as just last week Dallas Renegades exec and former Dallas Cowboys player Daryl “Moose” Johnston said in an interview on a SI.com podcast that they were looking forward to, and planning for the 2021 season.
A day later, everyone was fired. This is still an ongoing story, so stay tuned to PSN for all of your updates.
