Key Points:
- Vince McMahon and former XFL head Oliver Luck settle an $11.1 million legal dispute.
- The lawsuit involved claims of poor leadership and financial mismanagement leading to XFL’s 2020 bankruptcy.
- Settlement terms remain confidential
Sports entertainment mogul Vince McMahon and Oliver Luck, the former head of the XFL, have recently resolved an $11.1 million legal dispute that arose from allegations of poor leadership and mismanagement leading up to the league’s bankruptcy in 2020. This settlement, reached in a Connecticut federal court, marks the end of a contentious legal battle that began in April 2022 according to Law360.
The legal proceedings initiated when Peter Hurwitz, the bankruptcy plan administrator for XFL’s parent company Alpha Entertainment LLC, filed a lawsuit against Oliver Luck in Delaware. This suit accused Luck of providing “woefully inadequate” services as XFL’s commissioner and CEO. Hurwitz sought to reclaim a portion or all of Luck’s salary and bonuses, totaling two years’ worth.
This legal battle saw several key developments, including the transfer of the case to Connecticut following Luck’s request, rooted in a confidential settlement he received in a wrongful termination lawsuit. In August 2022, Luck filed a third-party complaint against McMahon, demanding indemnification based on his employment contract and an associated guarantee from McMahon. We have covered this all in depth on XFL News Hub.
In June 2023, U.S. District Judge Victor A. Bolden denied McMahon’s motion to dismiss, finding sufficient grounds in the complaint under the employment contract’s monetary compensation provisions. McMahon had contended that indemnification was only applicable to third-party claims, not those arising from Alpha’s bankruptcy.
The settlement, reached on September 14, effectively resolves all claims between Hurwitz and Luck, as well as those between Luck and McMahon, dismissing them with prejudice and without fees or costs to any party.
Oliver Luck’s termination occurred just days before Alpha Entrainment filed for bankruptcy in April 2020, marking the second shutdown of the XFL since McMahon first launched the league in 2001. The XFL has since relaunched in February 2023 under new ownership, including professional wrestler and actor Dwayne “The Rock” Johnson, Dany Garcia and RedBird Capital. The XFL is currently in merger talks with the USFL.
Meanwhile, McMahon, who merged WWE with Ultimate Fighting Championship’s parent company, now serves as the executive chairman of TKO Group Holdings Inc. Interestingly, he recently sold $700 million worth of shares.
