By Henry Frieman
The XFL filed for Chapter 11 bankruptcy Monday, a move that likely indicates the end of the second attempt at a football league by Vince McMahon.
The league is for sale, but the XFL still intends to refund all ticket sales, according to sources.
Chapter 11 Bankruptcy is defined as “involves a reorganization of a debtor’s business affairs, debts, and assets,” per Investopedia. In simpler terms, the XFL is proposing a plan to keep its business alive and pay creditors over time.
In contrast, the Alliance of American Football (AAF) filed for Chapter 7 Bankruptcy. “This chapter of the Bankruptcy Code provides for “liquidation” – the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors,” as defined by the US Courts. Basically, the AAF sold all of its assets to pay off debts. The XFL, however, is not liquidating its assets.
Although it’s unlikely the XFL returns, I wouldn’t rule it out completely. Old Vince (he’s 74!) might have one more trick up his sleeve.
Curse this pandemic for ruining one of the best leagues in sports. Stay home.