Reports surfaced on Monday that Vince McMahon’s XFL was filing for bankruptcy. This news comes days after it was revealed the league would shut down indefinitely and after the league was not going to resume this season or next. The XFL issued the following statement to TMZ:
“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.”
Essentially, this brings an end to the league for a second time. There are rumors that as part of the bankruptcy filing, the league is up for sale.
McMahon was heavily invested in trying to get the league to run and was working hard to land a large-scale television deal that would see the XFL turn a profit. And, as the league was much better for production than it was the first time through, the timing of the virus couldn’t have been worse.
League sources told TMZ that the coronavirus pandemic caused the league to lose “tens of millions in revenue”, losses stemming from not being able to finish the season and losing out on potential playoff revenues.
The league was on the hook with contracts for players that were to be paid up to April 12 but the bankruptcy essentially takes them off the hook for any future payments. Other payments included salaries and monies owed to the following:
Head coaches Bob Stoops ($1,083,333.33), Mark Trestman ($777,777.78), Jonathan Hayes ($633,333.33), Winston Moss ($583,333.33) and others were among those listed as creditors.