Want more from Front Office Sports
in your search results?
The now-defunct Alliance of American Football continues to be dogged by legal disputes.
Former AAF owner Tom Dundon — who also owns the NHL’s Carolina Hurricanes — has been sued for at least $184 million by the U.S. trustee overseeing the startup league’s bankruptcy.
The AAF ceased operations in April 2019 after filing for bankruptcy — at one point, it was unable to make $5 million worth of first-week player payments.
The trustee alleges Dundon shuttered the league despite financial alternatives.
- In response to the suit, Dundon has sued Charlie Ebersol, the AAF’s founder, for $70 million.
- Dundon alleges that he was misled by Ebersol about the AAF’s finances.
- The Hurricanes owner pledged to invest $250 million in the AAF.
The complaint filed by the trustee also revealed that the NFL had agreed to a deal with the AAF in exchange for warrants worth 15% of the shuttered league.
Controversial Investor
In April, Reginald Fowler — a former investor in the AAF and Minnesota Vikings — pleaded guilty to charges related to a $600 million cryptocurrency scheme in a Manhattan federal court.
Prosecutors alleged that Fowler — who attempted to buy a stake in the AAF using illegally obtained funds — facilitated unregulated transactions on behalf of crypto exchanges.
Fowler originally committed $170 million to the AAF in 2019 and later invested $28 million before it ceased operations, per Action Network.
Download the FOS App
The business of sports, in your pocket.
Scan the QR code to get the app now.
