XFL Issues Statement After Filing For Bankruptcy

XFL Issues Statement After Filing For Bankruptcy

XFL Issues Statement After Filing For Bankruptcy

Named after the US bankruptcy code 11, corporations generally file Chapter 11 if they require time to restructure their debts.

The St. Louis Sports Commission holds the largest unsecured claim against the league at $1.6 million.

When the XFL announced last month it was prematurely ending the 2020 season because of COVID-19, the startup league said it would return in 2021.

Seven of the league's eight teams head coaches also feature among the league's 25 biggest creditors.

The announcement that the XFL came three days after media reports said the league was suspending operations and laying off most employees after failing to finish its first season because of the COVID-19 pandemic. Vince McMahon lost a lot of money, but he would have lost more had he kept the football league going.

According to ESPN, all employees were paid through April 12, including any unspent vacation time.

The Chapter 11 bankruptcy filing notes the XFL has both assets and liabilities in the range of $10 million to $50 million.

TMZ added that the league counts several creditors including: "head coaches Bob Stoops ($1,083,333.33), Mark Trestman ($777,777.78), Jonathan Hayes ($633,333.33), Winston Moss ($583,333.33)".

However, WWE's share price tumbled by nearly 30 percent in the two weeks before the XFL made its debut on February 8.

The XFL is owned by World Wrestling Entertainment chief executive Vince McMahon through Alpha Entertainment LLC.

A source close to the league revealed to The Hollywood Reporter that the league plans to maximize the value of its assets in order to pay creditors and has begun the process of seeking a buyer.

The Tampa Bay Vipers line up against the LA Wildcats at Dignity Health Sports Park during an XFL game on March 8 in Carson, California.

Related news

[an error occurred while processing the directive]