XFL suspends operations, lays off all employees

[cero2k]

src: https://www.f4wonline.com/wwe-news/xfl- ... ees-308571

The coronavirus pandemic has affected another sports entity as the XFL announced in a Friday internal conference call that they are suspending operations and all employees have been laid off.

It's unclear if the suspension means the fledgling football organization is done forever, but given the uncertainty of the economy in the wake of the global health crisis, that is a strong possibility.

Less than a month ago, Vince McMahon's second go-round at a football league suspended the rest of their season as did all other active and between season sports leagues. Over the past two-plus years, the WWE chairman had sold nearly $300 million in stock in order to fund the league through Alpha Entertainment, a separate LLC.

The league debuted on a variety of networks this spring (ESPN, ABC, Fox, FS1) to good ratings that dwindled over the weeks, but still remained strong. The goal was to eventually secure a traditional rights deal for guaranteed money, but with the league only managing to play part of its schedule, it never had the opportunity to fully realize its first season since the first iteration launched in 2001.

Our Dave Meltzer speculated on Twitter that the WWE's recent stock price drops contributed to the decision in addition to the economy and the league's ability to get a TV deal due to those economic uncertainties.

[cero2k]

a very small part of me feels bad for Vince right now

[XIV]

XFL actually gained interest and now this.... doomed to failure.

[cero2k]

XFL FILES FOR CHAPTER 11 BANKRUPTCY
src: https://www.f4wonline.com/wwe-news/xfl- ... tcy-308786

After suspending operations last Friday, the XFL today filed for Chapter 11 bankruptcy.

The XFL issued a statement on the decision:

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.

The bankruptcy was filed for by Vince McMahon's Alpha Entertainment. It lists that the league has both $10-50 million in estimated assets and estimated liabilities.

McMahon owns 100 percent of Class A shares and 76.5 percent of Class B shares, while WWE owns 23.5 percent of Class B shares.

Sports Business Journal's Austin Karp tweeted: "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)." ESPN also wrote that a source close to the bankruptcy filing said the XFL could be sold during the process.

TMZ Sports reported that sources told them the coronavirus pandemic caused the XFL to lose "tens of millions in revenue." Their report also stated that XFL employees were paid their full wages up until April 12, along with any accrued vacation days.

XFL head coaches and general managers Bob Stoops ($1,083,333.33), Marc Trestman ($777,777.78), Jonathan Hayes ($633,333.33), Winston Moss ($583,333.33), Kevin Gilbride ($583,333.33), June Jones ($583,333.33), and Jim Zorn ($583,333.33) are listed among the league's top 25 creditors with the largest unsecured claims.