XFL Files For Bankruptcy, Documents Show WWE Owned Part Of The League

The XFL has officially filed for bankruptcy.

A document filed to the United States Bankruptcy Court in the District of Delaware shows that Vince McMahon's Alpha Entertainment has filed for Chapter 11 bankruptcy.

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In the document, it is shown that World Wrestling Entertainment owned 23.5% of Class B Interests in the XFL. McMahon sold part of his WWE stock to help fund the XFL, but was adamant that WWE and XFL were two separate entities. McMahon had 100% of Class A Interests and 76.5% of Class B Interests in the XFL.

The XFL issued the following statement to TMZ:

"The XFL quickly captured the hearts and imaginations of millions of people who love football.  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."

Bob Stoops, Marc Trestman, Ticketmaster, and more were also among the creditors listed in the document. Estimated assets and liabilities are both in the $10-50 million range.

You can view the entire filing document by clicking here.

According to Austin Karp of Sports Business Journal, the league is for sale as part of the bankruptcy filing.

On April 10 it was reported that the XFL would suspend all operations due to the coronavirus pandemic and all employees were laid off. The league officially canceled its first season under the reboot on March 20.

 

 

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