McMahon’s Alpha Entertainment, parent of XFL, files for bankruptcy
Vince McMahon’s Alpha Entertainment LLC, the parent company of the XFL, filed for Chapter 11 bankruptcy today, just days after the league informed its employees that it is suspending operations and firing everyone on their payroll.
In the court filings, Vince McMahon is listed as having 76.5% of Class B shares of the company while World Wrestling Entertainment is listed as owning 23.5% of the remaining Class B shares.
According to the document, the St. Louis Sports Commission is the biggest creditor and they are owed $1.6 million. NEP Integrated Solutions, which provides broadcast technology for high profile events, are owed $1.2 million. Bob Stoops, former head coach of the Dallas Renegades and Marc Trestman, the former head coach of the Tampa Bay Vipers are owed $1.08 million and $777,000 respectively. It’s not known how much the total amount for all creditors is.
Austin Karp of the Sports Business Journal added that the league is for sale as part of the bankruptcy process. Ticket season holders will be receiving a refund for their tickets in the coming days as well.
In a statement to TMZ, an XFL spokesman said, “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.” TMZ says that the company has paid all employees full wages up until yesterday as well as any accrued vacation days.
McMahon funded Alpha Entertainment with $100 million of his own money after cashing out hundreds of thousands of WWE stocks back in 2018.