|Chapter 11 For XFL|
|The XFL’s parent company filed for Chapter 11 bankruptcy yesterday. On Friday, the league suspended all operations and laid off almost all of its employees.
The filing, which was made by Alpha Entertainment, said the XFL had assets and liabilities in the range of $10 million to $50 million.
Loss Of Downs
The reborn XFL spent two years in development before debuting in February. The eight-team league played five weeks before it had to suspend its season due to the coronavirus pandemic.
Initially, the league had said it had plans to return in 2021. However, ESPN reported that XFL Owner Vince McMahon reassessed that position following WWE’s Wrestlemania 36 earlier this month, and instead decided to take this step.
The league could be sold during the bankruptcy process, according to ESPN.
“The XFL quickly captured the hearts and imaginations of millions of people who love football. Unfortunately, as a new enterprise, we were not insulated from the harsh economic impacts and uncertainties caused by the COVID-19 crisis. 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 league said in a statement.
Who Are The XFL’s Creditors?
The league owes more than $14 million to its 25 largest unsecured creditors.