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AAF Files Bankruptcy

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AAF Files Bankruptcy

Front Office Sports has learned that the Alliance of American Football has formally filed for Chapter 7 bankruptcy in San Antonio, Texas. In the filing, the fledgling football league claims assets of $11.3 million and liabilities of $48.3 million, as well as merely $536,160.68 in cash.

The filing comes 15 days after the league formally suspended operations on April 2, the eighth week of its first season in its attempt to provide a professional football alternative to the NFL.

According to court documents first obtained by Front Office Sports, the league’s creditors who have claims 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).

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Front Office Sports

@frntofficesport

BREAKING: @TheAAF has filed for Chapter 7 Bankruptcy.

– In the filings, 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.

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Additional creditors range from universities (Arizona State University: $1,237,793.82) to cities (San Antonio, via the Alamodome: $169,619.13; City of San Diego, SDCCU: $225,555.99) to private businesses (Rosemary’s Catering, a local San Antonio business: $203,000.81).

Of the creditors named in the filing, the following are owed more than $1 million:

MGM Resorts International: $7,000,000

CBS: $5,190,153

swirl | mcgarrybowen: $2,275,602.29

Morgan, Lewis, & Blockius: $2,413,773.57

Aramark Sports: $1,831,648

Arizona State: $1,237,793.82

When it comes to hotels, it doesn’t look like the league was paying the bills there, either.

According to the filings, here’s a look at just some of the lost income the hotels are left to figure out how to recoup:

Hilton Phoenix Mesa Hotel: $170,437.89

The Emily Morgan Hotel a Doubletree by Hilton: $324,416.29

Courtyard By Marriott Atlanta Alpharetta: $184,854.09

Embassy Suites by Hilton South Jordan Salt Lake City: $115,009.75

Embassy Suites San Antonio Landmark: $439,838.52

Embassy Suites San Antonio Riverwalk Downtown: $133,158.63

In response to the news, the league issued the following statement to The Action Network’s Darren Rovell.

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Darren Rovell

@darrenrovell

AAF statement on league filing for bankruptcy.

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The eight-team league launched in early February but was quickly beset by financial issues. Less than a month into operation, Carolina Hurricanes owner Tom Dundon pledged to invest $250 million in the league and assumed its chairman role shortly after The Athletic first reported the league was in danger of not making payroll.

Within weeks, he appealed to the NFL Players’ Association for cooperation in allowing select young NFL players to play on AAF rosters, telling USA Today on March 27 that “if the players union is not going to give us young players, we can’t be a development league.”

Failing that, Dundon told the paper, the league would consider ceasing operations. One week later, the AAF did exactly that. Multiple reports soon followed that the players were forced to pay their way home from road trips after the news broke. Now the league is officially bankrupt, 10 days prior to the scheduled date of what was to be its first-ever championship game.

*An earlier version of this story incorrectly stated that CAA was owed a figure of $30,000,000. It has since been updated to reflect the accurate figure of $30,000.

Article Source – https://bit.ly/2PeGJdx

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