UPDATE: We reported earlier today here on eWn that Vince McMahon’s XFL filed for Chapter 11 bankruptcy. According to ESPN, the XFL is planning to maximize its asset value so they can pay their creditors. They are also reportedly in the process of trying to find a potential buyer to keep the league going. Obviously, it remains to be seen how that will play out.
The XFL employees that were recently laid off were paid through the end of the regular season. They were also paid for any vacation days that had accrued.
ORIGINAL: The XFL filed a Chapter 11 bankruptcy filing in Delaware on Monday.
Media reporters who have gone through the filing have noted that WWE actually owned 23.5% of the XFL. Vince McMahon and other WWE officials had previously denied that WWE had an equity stake in the XFL.
The XFL issued the following statement to TMZ:
“The XFL quickly captured the hearts and imaginations of millions of people who love football. 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.”
