The latest decision made by WWE Chairman Vince McMahon regarding the second attempt at the XFL has apparently impacted his reputation in the process.
On Monday, the XFL filed for Chapter 11 bankruptcy in the state of Delaware. In the wake of the news, it was reported that the league is looking for a buyer for its assets.
This came after the pro football league had announced that they were suspending the season due to the coronavirus pandemic. Originally, they had plans to make a return in 2021 but McMahon nixed the idea and the XFL is done.
Dave Meltzer noted on Wrestling Observer Radio that the bankruptcy hurt Vince’s reputation. The reason for that is due to this decision that was made because McMahon could get out of the debt that the XFL had.
Meltzer noted that he picked up on this fact once speaking with people in New York on Monday as they pointed out how McMahon is worth millions of dollars and had earmarked $300 million for the league.
Those same people know that he hadn’t spent $300 million on the league yet. Thus, there is a feeling that McMahon ended up “screwing people” he worked with on the league, which includes coaches and stadiums.
As noted, WWE had a 23.5% equity stake in the XFL while McMahon owned the rest of the company. The league also had creditors that included head coaches Mark Trestman ($777,777.78), Jonathan Hayes ($633,333.33), Bob Stoops ($1,083,333.33), Winston Moss ($583,333.33) and others.
The league has between $10 million and $50 million in liabilities and the same in assets. Also, they owe more than $14 million to its 25 largest unsecured creditors.