The XFL’s creditors seem to believe that Vince McMahon may be trying to buy his XFL football league out of bankruptcy court, according to a new report from The Athletic.
The league shut down and filed for Chapter 11 bankruptcy in Delaware back in early April, due to the negative impact from COVID-19. However, XFL President Jeffrey Pollack continues to draw a salary and has reportedly called venues in Seattle and St. Louis to ask about reinstating lease agreements.
One former team official, who passed on the tips on St. Louis and Seattle to The Athletic, speculated that the bankruptcy filing and league shutdown in April may have been a “cutthroat finance ploy” by Vince to ride out the coronavirus pandemic without having to pay the costs of operating the league.
A representative for Visit St. Louis, the group that oversees The Dome at America’s Center where the STL Battlehawks played, confirmed to The Athletic that Pollack recently asked about the lease there.
A committee of unsecured creditors objected to Alpha Entertainment’s proposal to pay $3.5 million in season ticket refunds in a series of court filings on Tuesday, speculating that the league is only paying season ticket holders for games they didn’t get as a way to ensure goodwill to McMahon for if and when he returns with the XFL. The committee also questioned why XFL headquarters in Stamford, CT, which is across the street from WWE HQ, is still open and executives like Pollack are still drawing salaries.
A spokesperson hired by the XFL was asked about the possibility of Vince filing for bankruptcy protection to restart the league and they wrote back, “The response to this filing will speak for itself.”
You can read more details on Tuesday’s filing by the unsecured creditors at The Athletic.