The hits have continued for Vince McMahon as the XFL Professional football league has filed Chapter 11 bankruptcy as of this Monday. This statement noted that the economic uncertainties and impacts caused by COVID-19 has unfortunately forced the XFL to close down. This news comes as the XFL had already suspended operations last week. The season was postponed after only the fifth week.
The XFL has issued a statement with TMZ:
“Unfortunately, as a new enterprise, we were not insulated from the harsh economic impacts and uncertainties caused by the COVID-19 crisis. Accordingly, we have filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code. This is a heart-breaking 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.”
It should be noted that once the relaunch of the league was officially announced, WWE Chairman Vince McMahon confirmed that the WWE was not part of his new project. WWE would actually be a separate company from the XFL, which was owned by Vince McMahon under Alpha Entertainment. The bankruptcy listing suggests otherwise as the WWE owned 23.5 percent of the XFL’s Class B stock While McMahon owned the remainder.
As recently as February, the interim CFO of WWE Frank Riddick stated on a conference call that the WWE had no plans of investing in the XFL. WWE is expected to release its quarterly financial report on the 23 rd April 2020 and will hold a conference call for their investors. WWE having an equity stake in the XFL is expected to be brought up. Mr. McMahon has nearly sold $300 million in WWE stock to fund the league.
