The unfortunate circumstances continue for the XFL as they have filed for Chapter 11 Bankruptcy today in Delaware. In the report, according to Action Networks Darren Rovell, the WWE owned part of the league with 23.5% of Class B stock. Among the creditors include Mark Trestman, Bob Stoops, and MetLife Stadium.
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
For those unaware of what Chapter 11 Bankruptcy means. It is a form of bankruptcy that involves a reorganization of a debtor’s business affairs, debts, and assets. Named after the U.S. bankruptcy code 11, corporations generally file Chapter 11 if they require time to restructure their debts. It is also usually the most expensive form of a bankruptcy proceeding. Many businesses have filed for Chapter 11 Bankruptcy and have come through.
As part of the bankruptcy process, Sports Business Journal’s Austin Karp tweeted that an XFL source told him the league is for sale.
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
The XFL did release a statement on filing for Chapter 11 Bankruptcy saying, “The XFL quickly captured the hearts and imaginations of millions of people who live football,” the XFL said: “Unfortunately, as a new enterprise, we were no insulated from the harsh economic impacts and uncertainties caused by the COVID-19 crises. 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 official statement from the #XFL on their Chapter 11 Bankruptcy: pic.twitter.com/DkBQpTOgJl — Konnor Fulk (@KonnorFulk_XFL) April 13, 2020
It’s incredible how quickly two months fly. The XFL got off to a hot start with their innovations from the kickoff to extra point converts. The XFL, like many other leagues, were forced to suspend their seasons due to COVID-19. Some have had to cancel the rest of their season as the XFL did back on March 20th. Last week, the XFL refunded all season ticket holders for the 2021 season. Last Friday, they suspended day to day operations and laid off a portion of their employees, keeping only a handful at the league headquarters.
It’s a shame that the XFL ended so soon because so many of us have been wanting to see a spring football league succeed since the days of the USFL. Unlike other leagues, this league was forced to cancel their season due to the coronavirus pandemic. This league looked like the answer for spring football, but now it seems likely they will join the rest of failed leagues. While they only lasted for five weeks, they did give the fans some good games and helped some players sign with NFL teams. Thanks for the memories, XFL.
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