Vince McMahon’s XFL is the latest football league to move play to bankruptcy court, where it hopes to sell its assets.
Parent Alpha Entertainment LLC filed for Chapter 11 protection on Monday, April 13, in the U.S. Bankruptcy Court for the District of Delaware in Wilmington. The petition comes about three weeks after the league canceled the remainder of its inaugural season because of the Covid-19 pandemic and days after it reportedly suspended operations and laid off nearly all staff.
Although the league initially said it looked to play full seasons “in 2021 and beyond,” a Friday ESPN report said there were no plans for a future return. The collapse means the league played one season of less in each of its two iterations. A previous version of the XFL played its sole season in 2001.
A first-day hearing has yet to be scheduled before Judge Laurie Selber Silverstein.
In a declaration, Alpha president and COO Jeffrey N. Pollack said a $3.5 million new-money debtor-in-possession loan from McMahon, founder of World Wrestling Entertainment Inc. (WWE), would allow the Stamford, Conn.-based league to fund payroll and conduct a sale process. The loan calls for approval of bidding procedures by May 15 and a sale by July 15.
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