The time is officially here AAF fans. The Alliance of American Football has filed for Chapter 7 bankruptcy. Putting the final nail in the coffin for a direct competitor to the XFL. This after only eight weeks of games and a promise of $250 million in financial backing by NHL Carolina Hurricanes owner Tom Dundon. They suspended operations earlier this month when Dundon pulled out of the league effectively leaving it no choice but to close its doors.
Front Office Sports reported the AAF filed for bankruptcy in the following tweet.
BREAKING: @TheAAF has filed for Chapter 7 Bankruptcy.— Front Office Sports (@frntofficesport) April 17, 2019
– In the filings, the league claims assets of $11.3 million and liabilities of $48.3 million.
– According to the documents, the league has $536,160.68 in cash. pic.twitter.com/IsOlGi2yoO
The AAF is claiming assets of $11.3 million and liabilities of $48.3 million. As for actual cash in the bank, the league has a total of just $536,160.68.
The league’s trouble started before its first kick off when former USFL player Reggie Fowler, who was the AAF’s primary investor. Did not come through on a $28 million payment in December of 2018. We reported that WWE Chairman and CEO Vince McMahon declined an offered by the AAF to merge with the XFL in late December of 2018. XFL Chairman and CEO Oliver Luck was asked about any knowledge of a conversation about a merger, and he said no.
Hurricanes owner Tom Dundon then came aboard as the primary investor He gave $250 million in funding and became the league’s chairman. The extra capital still could not make it work as the AAF was reportedly losing $10 million per week.
XFL News Hub reported less than a month ago that Dundon said “If the players union is not going to give us young players, we can’t be a development league. We are looking at our options, one of which is discontinuing the league.”
AAF Offical Statement On Folding
AAF statement on league filing for bankruptcy. pic.twitter.com/wXTh2eZmEL— Darren Rovell (@darrenrovell) April 17, 2019
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