XFL Files For Bankruptcy, Lost " Tens Of Millions" Due To Quarantine
It’s not a good time to own a professional sports league right now, and it’s especially a bad time to start a new one. This is certainly the case with Vince McMahon’s newly returned XFL, who was suffocated after a surprisingly promising new start thanks to the coronavirus and has now filed for bankruptcy.
TMZ Reports Deposits Arrived Just Days After XFL’s Official Closure, And According To A Press Release From A League Spokesperson, The Coronavirus Pandemic And Resulting Social Distancing Guidelines Are Main factor of his misfortune:
US Bankruptcy Code
“XFL has quickly captured the hearts and imaginations of millions of football fans. Unfortunately, as a new business, we have not been isolated from the harsh economic repercussions and uncertainties caused by the COVID-19 crisis. As a result, we have filed for redress under Chapter 11 of the US Bankruptcy Code.
“It is a heartbreaking time for many, including our passionate fans, players and staff, and we are grateful to them, our television partners and the many Americans who have joined XFL for the love of football. . ”
A source tells TMZ that COVID-19 cost XFL “tens of millions of revenues” through half the regular season and the end of the post-season.
Sports affairs expert Darren Rovell went into more detail on the brief return to service of the XFL, including the fact that it was funded to the tune of $ 500 million by Vince McMahon through Alpha Entertainment. The league’s creditors mentioned in the file are also listed, including the eight XFL head coaches, who owe between $ 583,333 and $ 1.083 million each.
The bankruptcy is probably the last nail in the coffin for this incarnation of XFL, which was founded for the first time in 2001, for a season before its closure and its possible resumption earlier this year.