The hits continued for the XFL as on Monday, the pro football league filed Chapter 11 bankruptcy.
The bankruptcy statement noted that the economic impacts and uncertainties caused by the coronavirus forced the XFL to close down.
This comes after the XFL had suspended operations last week. The season was postponed after week five. The XFL issued a statement to 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 heartbreaking 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 that once the relaunch of the league was made official, WWE Chairman Vince McMahon stated that WWE wasn’t part of his new project. Instead, WWE would be a separate company from the XFL, which was owned by McMahon under Alpha Entertainment.
The listing for the bankruptcy revealed that wasn’t the case. Instead, WWE owned 23.5 percent of the XFL’s Class B stock while McMahon owned the remainder of it.
As recently as February, WWE’s Interim CFO Frank Riddick stated on a conference call that WWE had no plans of investing in the XFL.
WWE is slated to release its quarterly financial report on April 23 and will hold a conference call for investors. WWE having an equity stake in the XFL could be brought up.
McMahon had sold nearly $300 million in WWE stock in order to fund the league.
