Connect with us

XFL News

Oliver Luck Wants McMahon To Pay Him, Not The Sale Of The XFL

Back in late June, XFL News Hub reported that the lawsuit between XFL CEO and Commissioner Oliver Luck and XFL owner Vince McMahon was put on pause. The ‘Stay Order” by Judge Victor A. Bolden was put in place, so Alpha Entertainment LLC could be sold first in early August before their ligation can continue. Now Lucks legal team is trying to change that.

Oliver Luck and his legal team filed a ‘Motion For Relief From Stay’ in the Alpha Entertainment LLC bankruptcy proceedings. First, they want to prove that Alpha terminated Luck without cause. If they are able to do so, they want the $23.8 million owed in compensation to be paid for, not by the sale of the XFL, but rather by Vince McMahon himself.

“Mr. Luck was terminated without cause from his employment as the Commissioner and CEO of the XFL. The Employment Contract (as defined below) was guaranteed by Mr. McMahon. In the Guaranty Action, Mr. Luck seeks to enforce the Guaranty against Mr. McMahon. However, the District Court recently held that Alpha is a necessary party to determine whether Mr. Luck can recover under the Guaranty solely against Mr. McMahon, and has stayed the Guaranty Action until such time as Alpha can be joined. 

Cause exists to lift the stay to allow Mr. Luck to name Alpha as a nominal defendant in the Guaranty Action because Alpha will be a party solely to determine whether Mr. Luck was properly Case 20-10940-LSS Doc 295 Filed 07/17/20 Page 1 of 11 2 40000/0841-20824612v3 terminated for cause under the Employment Contract for the sole purpose of allowing Mr. Luck to obtain a monetary judgment against Mr. McMahon under the Guaranty. Even if Mr. Luck is succesful in obtaining a declaration that Alpha did not not properly terminate him for cause, Mr. Luck will not be seeking to recover any monetary judgment against Alpha and will not be pursuing a claim in this case. Because no recovery will be sought against Alpha, lifting the stay will not cause any prejudice to Alpha, its bankruptcy estate, or its creditors. By contrast, if the stay is not lifted, Mr. Luck will be significantly prejudiced by being indefinitely stayed from pursuing the recovery of substantial sums owed to him under the Guaranty from a non-debtor, Mr. McMahon. “

Later in the filing, it again reiterates that Luck seeks to get paid from McMahon only, not Alpha Entertainment LLC.

“Mr. Luck does not seek to enforce any judgment against Alpha. The sole purpose of joining Alpha as a party in the Guaranty Action is to determine whether Alpha wrongfully terminated Mr. Luck so that he can recover against Mr. McMahon under the Guaranty. Because Mr. McMahon is bound by an absolute guaranty of payment, Mr. Luck can collect from Mr. McMahon under the Guaranty without first attempting to collect from Alpha”

This move will undoubtedly help the sale of the XFL, as the Luck / McMahon feud will be outside of the realm of their purchase. Someone interested in buying the XFL at a bargain won’t want Luck’s $23.8 million hanging over their head.

Luck wants his money, and he wants it now. His legal team’s fear is that who knows what McMahon’s financial position will be due to the current economic state.

“As this Court is all too aware, the COVID-19 pandemic has put a strain on many businesses and industries, even causing Alpha to file for bankruptcy. With the economic issues caused by the pandemic, the assets that Mr. McMahon has available now to satisfy a potential judgment might not be the same assets that he has at the conclusion of this bankruptcy proceeding. “

The next step for fans of the XFL is to continue to wait and see as this story develops. Getting the Luck / McMahon feud out of the bankruptcy process is a good thing. 

One note, and this is pure speculation, by Luck making this move. Does this open the possibility of Oliver Luck returning to the XFL as CEO and Commissioner under new ownership?


Unleash the Action: Sign up for XFL Insider and Fuel Your Passion for Football!


Mark Perry, a devoted sports journalist and founder of XFL News Hub, has been a key figure in XFL coverage since its 2018 revival. Launching XFL News Hub soon after the league's return announcement, Mark has established the platform as a primary source for comprehensive XFL updates. Renowned for his in-depth knowledge and commitment to sports journalism, Mark actively engages the XFL community, welcoming interactions at mark.perry@xflnewshub.com.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

XFL Kickoff

XFL News Alerts

USFL and XFL Merger: A Deep Dive into the Historic Collaboration

Latest Podcast

Subscribe XFL Podcast

More in XFL News

XFL News Hub