Betting-backed XFL files for bankruptcy
American football league details “harsh economic impact” and reports liabilities of between $10m and $50m
The XFL, the American football league owned by Vince McMahon’s Alpha Entertainment, has filed for bankruptcy after coming into financial difficulties due to the coronavirus outbreak.
In the Chapter 11 bankruptcy filing, Alpha Entertainment detailed that it had liabilities of between $10m and $50m along with 1,000 to 5,000 creditors.
The XFL, which had returned in February following a 19-year long hiatus, had signed several high-profile betting partnerships.
Deals with Sportradar, DraftKings, Genius Sports and Fox Bet had provided the XFL with a solid foundation in sports betting.
An agreement with ESPN and ABC also afforded the broadcasters the opportunity to integrate odds into their coverage of the XFL matches.
In fact, the XFL president Jeffrey Pollack regularly noted that sports betting was an integral part of the XFL experience.
Pollack said: “We want what our fans want, and millions of football fans have made fantasy and legal wagering an essential part of their football experience.”
The return of the XFL was warmly received by operators after the league’s opening weekend.
On 10 April, the XFL announced that it had suspended its operations and laid off employees due to Covid-19 but was planning on a return in 2021.
In a statement released this week, the XFL said that the move to file for bankruptcy was “heartbreaking”.
The statement continued: “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.
“Unfortunately, as a new enterprise, we were not insulated from the harsh economic impacts and uncertainties caused by the Covid-19 crisis.”