Vince McMahon’s XFL football league declared Chapter 11 bankruptcy on Monday afternoon.
Alpha Entertainment, the parent company behind the XFL, suspended operations on April 10 and the league wasn’t expected to return in 2021 due to the coronavirus pandemic.
The XFL folded with assets and liabilities each in the range of $10 million to $50 million, according to ESPN. St. Louis Sports Commission, a nonprofit organization that promotes major sporting events for the city, was the largest creditor in the filing at $1.6 million. Among the eight coaches in the league, seven were listed as among the top creditors.
The XFL said it wasn’t “insulated from the harsh economic impacts” of the pandemic, despite capturing “the hearts and imaginations of millions of people who love football.” As such, the league and its parent company filed a voluntary petition for relief under Chapter 11.
“This is a heartbreaking time for many, including our passionate fans, players, and staff, and we are thankful to them, our television partners, and the many Americans who rallied to the XFL for the love of football,” according to the statement.
A source close to the bankruptcy told ESPN the league could be sold during the process. XFL chief operating officer Jeffrey Pollack confirmed all employees will be laid off.
Why It’s Important For WWE
McMahon, who serves as the CEO of World Wrestling Entertainment, first attempted to launch the football league in 2001, but it folded after one season. The XFL was relaunched in February 2020 and its season lasted just five weeks before it was suspended.
The bankruptcy filing showed that WWE owned 23.5% of the league’s Class B shares. McMahon owned 100% of Class A shares and 76.5% of Class B shares.
“It appears as though the WWE never disclosed its interest in … Alpha Entertainment, which would not only give credence to recent lawsuits that have popped up but also could draw the ire of the Security and Exchange Commission,” according to Action Network. “The SEC would usually require disclosure of relevant business and financial information for investors, and it might consider McMahon’s public stance that he owned the XFL in totality inaccurate and misleading.”
WWE’s stock closed Monday at $37.46 per share.
This story originally appeared on Benzinga.
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