VM reason for folding XFL

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4th&long
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Posts: 6471
Joined: Sun Nov 24, 2019 2:27 pm

VM reason for folding XFL

Post by 4th&long »

Here we get some simple direct reasons for the XFL folding and it was ALL about China's coronavirus

>> Daniel Kaplan
@KaplanSportsBiz
i dont think it means that. my sources tell me XFL is done because McMahon has a very dour view of the US pandemic response, and thinks it may be years before the economy returns to the state it was before <<
https://twitter.com/KaplanSportsBiz/sta ... 8713646081

Now agree with that or not... That SOUNDS LIKE something that would cause someone to pull the plug, and protect what he has.

Not to mention WWE stock has lost about 60% of its value from peaks in Q1 2019.

https://www.cnbc.com/quotes/?symbol=wwe&qsearchterm=wwe

Vince is basically circling the wagons... the XFL proved that spring FB can work, but Corona has taken him out at the knees. XFL made a non-paying TV deal inorder to get top notch exposure. It was a smart but costly move in near term with huge down stream upside. But it was already designed to lose money in years 1-3. China's coronavirus took away the cash in the bank need to make it happen.

And the sports world suffers. Huge Shame

>>Daniel Kaplan
@KaplanSportsBiz
sort of crazy in this environment, but told the XFL is for sale now. I suppose that would mean trademarks and logos as the rest of it is disbanded.
3:26 PM · Apr 13, 2020·Twitter Web App<<
https://twitter.com/KaplanSportsBiz/sta ... 8245625856

ESPN quoting a source said the league COULD be sold...
>> A source close to the bankruptcy filing said the league could be sold during the process.<<
https://www.espn.com/xfl/story/_/id/290 ... operations

There is some reason they refunded fans (could just be good PR for WWE), paid employees thru 4/12 with accrued vacation, etc... , and I believe the Coach $$ owed is for year 2 (they must have been paid for 2020 at least 95%) this is being wrapped up in a select way.


Since they filed a Chapter 11 (vs 7) they are looking to clear debts and reorganize, the remaining assets (intellectual property, equipment, business plans, etc..) can be purchased - even my VM himself, to be used after Corona. Will someone give it a try in 2021 or 2022? With there be a vaccine quick an corona is no longer a threat to people or the economy. Will things bounce back quick? Will someone or group pick up the pieces? Time will tell. In the short term the IP assets are protected.
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