The XFL filed for bankruptcy, just three days after the league announced it was suspending operations and laying off staff.
In the Chapter 11 filing, the league listed both assets and liabilities in the $10-$50 million range. Alpha Entertainment, the company founded by Vince McMahon to oversee the XFL, was listed as the debtor on the document, with McMahon holding 100% of its class A shares. World Wrestling Entertainment is listed as a class B shareholder, with a 23.5% stake, with McMahon holding the remainder. The news was first reported by Eriq Gardner of the Hollywood Reporter.
The St. Louis Sports Commission holds the largest unsecured claim against the league at $1.6 million. The XFL had agreed to pay St. Louis $100,000 a game, according to the St. Louis Post Dispatch.
Other high stakes creditors include a number of league coaches, including Bob Stoops, Marc Trestman and Kevin Gilbride, as well as Ticketmaster, the Meadowlands Stadium and the Tampa Sports Authority.
The timing struck some as particularly fast, since the league laid off nearly all employees on Friday.
“It’s not coincidental that everyone was fired on Friday and they filed on Monday,” said a prominent sports lawyer who asked to speak anonymously. “This eliminates some of the risk Vince [McMahon] was facing regarding his other assets. At some point if they can’t find a buyer, they could still convert it to a Chapter 7, which would allow them to sell everything and pay creditors pro rata.”
The XFL was five weeks into its season when games were suspended on March 12.