Last month, Vince McMahon decided to fold the second attempt at the XFL as the pro football league filed for Chapter 11 bankruptcy in the state of Delaware. At the time, it was reported that the league is looking for a buyer for its assets.
Daniel Kaplan of The Athletic has an interesting report that looks at how the WWE Chairman and CEO might be trying to buy back the league. It was noted in the report that XFL creditors “seem to believe” McMahon is positioning to buy the league out of bankruptcy.
Also, it was reported that XFL president Jeffrey Pollack has contacted stadiums in Seattle and St. Louis about reinstating the league’s lease agreements.
If this is agreed upon then it would allow McMahon to escape debt that the league has following the inaugural season and if started up again after the coronavirus outbreak is over then it would have a clean slate.
It was noted that the reason for the belief by the creditors is due to the proposal in bankruptcy filings to pay $3.5 million in season-ticket refunds. If done then it would help relations with customers ahead of a future arrangement of games.
The creditors noted that the payment “is being sought to further the efforts of the debtor’s controlling equity holder/secured lender, Vincent McMahon . . . to acquire the debtor at a fire-sale price.”
Also, the XFL owes more than $14 million to its 25 largest unsecured creditors. Of course, nothing is confirmed regarding whether McMahon plans to start the league back up because he would have to rebuild the league from the ground up, which includes re-hiring coaches and players and other staff.
This comes at a time where McMahon is currently being sued by former XFL Commissioner Oliver Luck for wrongful termination. For more on that, click here.