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Tuesday, June 25, 2024
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Law

Carolina Hurricanes Owner Sued for Pro Football League’s Demise

  • The AAF ceased operations in April 2019 after filing for bankruptcy.
  • At one point, the startup league was unable to make $5 million worth of first-week player payments.
Brett Davis-USA TODAY Sports

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 Vikingspleaded 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.

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