[ad_1]
Photo credit: Jake Roth-USA TODAY Sports
Front Office Sports has learned that the Alliance of American Football had officially filed for bankruptcy in Chapter 7 in San Antonio, Texas. On the record, the new football league claims assets of $ 11.3 million and liabilities of $ 48.3 million, as well as only $ 536,160.68 in cash.
The deposit comes 15 days after the official suspension of the league's activities on April 2, the eighth week of its first season, with the goal of providing an alternative to professional football for the NFL.
According to court documents obtained in advance by Front Office Sports, the creditors of the league whose claims are secured by property include MGM Resorts International for $ 7,000,000, Aramark Sports for $ 1,831,648 and Silicon Valley Bank for $ 810,523. .
Other parties with unsecured claims include CBS ($ 5,190,153), CAA ($ 30,000), Mike Pereira ($ 60,497.81) and Dean Blandino ($ 45,000).
BREAKING: @TheAAF filed a complaint for Chapter 7 Bankruptcy.
– In the filed documents, the League claims assets of $ 11.3 million and liabilities of $ 48.3 million.
– According to the documents, the league has $ 536,160.68 in cash. pic.twitter.com/IsOlGi2yoO
– Front office sports (@frntofficesport) April 17, 2019
Additional creditors range from universities (Arizona State University: $ 1,237,793.82) to cities (San Antonio, via Alamodome: $ 169,619.13, City of San Diego, SDCCU: $ 225,555.99) to businesses private (Rosemary's Catering, local San Antonio business: $ 203,000.81).
In response to this news, the league issued the following statement to Darren Rovell of The Action Network.
AAF declaration on filing for bankruptcy of a league. pic.twitter.com/wXTh2eZmEL
– Darren Rovell (@darrenrovell) April 17, 2019
The eight-team league was launched in early February but was soon faced with financial problems. Less than a month after the start of operations, Tom Dundon, owner of Carolina Hurricanes, pledged $ 250 million in the league and assumed the role of president soon after The Athletic announced for the first time the league risked not receiving a salary.
A few weeks later, he appealed to the NFL Players Association for cooperation to allow a selection of young NFL players to play on AAF alignments, telling USA Today in March 27 that "if the players' union does not give us young players, we can not be a development league".
Otherwise, Dundon told the newspaper that the league would consider shutting down. A week later, the FAA did exactly that. Several reports Shortly after, the players were forced to pay for their trip after returning from the road. Now, the league is officially bankrupt, 10 days before the scheduled date of its very first league game.
* An earlier version of this story incorrectly stated that CAA owed a figure of $ 30,000,000. It has since been updated to reflect the exact figure of $ 30,000.
[ad_2]
Source link