The XFL’s parent company, Alpha Entertainment, filed for Chapter 11 bankruptcy Monday, the first business day after the league suspended operations and laid off almost all of its employees on Friday.
The filing in U.S. Bankruptcy Court in Delaware estimates the organization has between $10,000,001 and $50 million in both assets and liabilities.
The largest creditor was listed as the St. Louis Sports Commission at $1.6 million. Seven of the league’s eight coaches also are among the top creditors.
According to a league source apparently the XFL wants to maximize the value of its assets in order to pay creditors and has begun the process of seeking a buyer.
The XFL lasted just part of one season before the COVID-19 pandemic put their season on hold. At the time, the league promised it would be back in 2021. That’s looking less likely by the day with reports suggesting the league was toast over the weekend.
BREAKING: XFL files for bankruptcy. N bankruptcy filing reveals that WWE actually does own part of league (23.5% of Class B stock). Among the creditors — Bob Stoops ($1M), Marc Trestman ($777K), Ticketmaster ($655K), other coaches ($583K) and MetLife Stadium lease ($368K). pic.twitter.com/PRj3CXAnkv
— Darren Rovell (@darrenrovell) April 13, 2020
In a statement, the XFL attributed its decision to the coronavirus pandemic:
“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.”
An XFL source tells me the league is in fact for sale as part of bankruptcy process.
XFL still intends to return all ticket funds to fans (as @BenFischerSBJ reported Friday).
— Austin Karp (@AustinKarp) April 13, 2020
Owner Vince McMahon, who is also chairman and CEO of the WWE, has not spoken publicly about the XFL’s demise.
XFL CEO Jeffrey Pollack held a conference call Friday with employees to announce the layoffs and suspension of operations. Although Pollack stopped short of saying the league is going out of business, staffers left the call convinced that the XFL will not return.
A source close to the bankruptcy filing said the league could be sold during the process.