Is Vince McMahon trying to covertly buy his own bankrupt XFL?

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SamTheRam28
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Is Vince McMahon trying to covertly buy his own bankrupt XFL?

Post by SamTheRam28 » Wed May 20, 2020 2:09 am

https://theathletic.com/1824702/2020/05 ... krupt-xfl/
Is Vince McMahon trying to buy his own XFL out of Delaware bankruptcy court? The XFL’s creditors seem to think so, and sources said XFL president Jeffrey Pollack has called venues in St. Louis and Seattle about reinstating the lease agreements.

The XFL, 80 percent owned by McMahon through Alpha Entertainment and 20 percent by his WWE empire, launched Feb. 7 and lasted five weeks before shutting down because of the COVID-19 pandemic. The league shut down for good April 10 and filed for Chapter 11 bankruptcy three days later.

But was that just a cutthroat finance ploy by McMahon to ride out the pandemic and resultant economic turmoil without paying the costs of operating the league? That’s what was asked by one former team official, who passed on the tips about Seattle and St. Louis. A representative for Visit St. Louis, which oversees the Dome at America’s Center where the BattleHawks played, confirmed Pollack had reached out about the lease.

A representative for the XFL declined to comment.

But a committee of unsecured creditors had plenty to say Tuesday in a series of court filings. Objecting to Alpha Entertainment’s proposal to pay $3.5 million in season ticket refunds, the committee wrote, “This is an unnecessary expenditure designed to buttress the Debtor’s argument that an abbreviated sales process is required and is being sought to further the efforts of the debtor’s controlling equity holder/secured lender, Vincent McMahon (“McMahon”), to acquire the debtor at a fire-sale price. … The debtor cannot possibly know at this time whether issuing refunds to season ticket holders will preserve the value of the debtor estate’s or benefit any creditor, other than possibly McMahon.”

In other words, the only reason to pay season ticket holders for games they did get would be to ensure goodwill to McMahon for if and when he returns with the XFL. The season ticket holders are unsecured creditors, so the chances they get paid in an orderly liquidation would be remote.

The committee also questioned why XFL headquarters is still open and executives like Pollack are drawing salaries.

“Any cash constraints on the debtor are solely the result of unnecessary and unwarranted expenditures by the debtor designed to placate the desires of McMahon, such as the payment … in ticket refunds to unsecured creditors by an estate that allegedly may become administratively insolvent; retention of the debtor’s headquarters in Stamford, Conn., which is across the street from the (headquarters) of McMahon’s principal asset, World Wrestling Entertainment, Inc. (“WWE”); employees in that locale drawing excessive compensation rates who are not needed for an enterprise that has shut down; and a bloated cost-sharing arrangement with the WWE that has yet to be explained for unspecified finance and accounting services,” the committee wrote. “The … bid procedures are designed to ensure that McMahon can acquire the debtor at a fire-sale price with third parties having little or no meaningful opportunity to do the diligence required to ensure a fair process.”

Unlike the bankrupt Alliance of American Football, the XFL arguably has intriguing intellectual property assets. The XFL spent over a year developing new rules, many of which, like the kickoff and punt, were so well received some asked if the NFL should adopt them. Even the ball was unique to the XFL.

And in certain markets, like St. Louis and Seattle, the crowds were thick and fan passion evident, a remarkable feat for a nascent league. The teams in markets like New York and Tampa, Fla., struggled (and there was talk of relocating those teams), but many XFL markets fared well.

When the XFL shut down, it had more than 400 employees, including players, many highly paid. Dallas head coach Bob Stoops had a two-year, $2 million contract, and team presidents were earning an annual salary in the mid-six figures.

The employees’ only redress is filing claims in bankruptcy court, other than former commissioner Oliver Luck. Because McMahon guaranteed Luck’s pay, he is suing McMahon for $23.8 million in federal court.
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SamTheRam28
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Re: Is Vince McMahon trying to covertly buy his own bankrupt XFL?

Post by SamTheRam28 » Wed May 20, 2020 2:56 am

The thing about Pollack calling STL & Seattle is very intriguing. I don't want to get my hopes up, but I would do literally anything to get this league back and I hope Vince still has plans for the XFL.
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Re: Is Vince McMahon trying to covertly buy his own bankrupt XFL?

Post by MGB01 » Wed May 20, 2020 3:10 am

The CFL going under could be a thing, at least it's closer to being a reality now than it was seven weeks ago when the XFL made the announcement.

That said, the concern for 2021 is where are all the revenues coming from? That hasn't changed from seven weeks ago, along with the likelihood of the post-SB period being crowded with both college football and basketball (there go the TV slots). Of course if he's come up with a plan then by all means...............

But as I said in another thread the leagues/orgs that are coming back are the one who make bank off of TV and while not prospering, can withstand this. Even if the CFL goes and there's a sudden void that still has to be addressed.

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Re: Is Vince McMahon trying to covertly buy his own bankrupt XFL?

Post by Tank55 » Wed May 20, 2020 10:25 am

XFL 3.0!

If Pollack is making phone calls, there's hope. Amazing.
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Firecop
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Re: Is Vince McMahon trying to covertly buy his own bankrupt XFL?

Post by Firecop » Wed May 20, 2020 5:43 pm

Who'd a thunk it!
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Re: Is Vince McMahon trying to covertly buy his own bankrupt XFL?

Post by MGB01 » Wed May 20, 2020 6:36 pm

CFL has officially postponed their season until September (season opening Labor Day DH Sept 7?), a shortened season and a homefield Grey Cup

https://touchdownwire.usatoday.com/2020 ... -pandemic/

Ultimately I don't think the CFL goes anywhere but I've just seen five national stores go under so who knows? Maybe he/Pollack can snag similar rights/streaming deals--if not them themselves, if so that covers the game day losses (what was the number thrown around, about 25-30 mil?)

Still a long shot (real long) and it still looks more toward merely acquiring assets if nothing else, but why not take one last shot if its there?

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Re: Is Vince McMahon trying to covertly buy his own bankrupt XFL?

Post by Dorky_dude » Thu May 21, 2020 12:31 am

LFGO!

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Re: Is Vince McMahon trying to covertly buy his own bankrupt XFL?

Post by 4th&long » Thu May 21, 2020 9:44 am

Thought this early on for same reasons stated.

IMO he think Luck was spending too much money and he thinks it could be done for less. Ie too many players for a 10 week season. The refund fo season ticket holders. The chp 11 vs 7. Putting in $3.5mm to close out etc....
Also VM may have been buying time to see how we react to pandemic.

Luck is not a businessman - I think he showed that with spending money after suspension in a pandemic.

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Re: Is Vince McMahon trying to covertly buy his own bankrupt XFL?

Post by Metallifreak10 » Thu May 21, 2020 10:30 am

I don’t have much to add other than that I’m holding out hope!

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Re: Is Vince McMahon trying to covertly buy his own bankrupt XFL?

Post by MGB01 » Thu May 21, 2020 3:35 pm

Something else to consider here, while I've mostly been watching the CFL, is no college football.

While I don't think that will happen either and more likely that the college season gets pushed back and we have a jam-packed football/hoops split in eight months (which you'd be hard-pressed to find a spot for the X), there is a possibilty. The logistics alone work against anything happening in the next month or two.

Maybe we could finally get that pipe dream of Trevor Lawrence for a year after all. That would have only been considered under a one in a million situation, well this would be it. What changed? Maybe seeing K-Rob listed as West Virginia/St. Louis BattleHawks and highlights afterwards (pretty sure that didn't happen when Adrian McPherson was drafted, even during the time the NFL and Arena League had a loose relationship).

"With the #1 pick in the 2021 NFL Draft, the Chicago Bears* select Trevor Lawrence, QB, Clemson/Seattle Dragons"

*-Like hell Gardner Minshew is going to QB the worst team in the league even if the rest of the team is eclipsed by AEW on the relevance scale in Khanworld. Besides the Bears traded up for an ACC quarterback before, now they'll do it for a good one.

Given that half the power five schools (forget GO5/FCS) would be wiped out without football paying the bills the chance of this happening is definitely of the Lloyd Christmas variety, but then again you can't let it go by either.

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