wrestling / News

More Details On Vince McMahon’s Rumored Plan To Declare Bankruptcy For XFL And Buy It Later

May 22, 2020 | Posted by Joseph Lee
XFL Logo Oliver Luck

As we reported earlier this week, there has been speculation that Vince McMahon could have declared bankruptcy for the XFL in order to buy it back later for a ‘fire sale price’. It was even reported that XFL President Jeffrey Pollack has called venues in St. Louis, Missouri and Seattle, Washington, about reinstating lease agreements. The Wrestling Observer Newsletter has a few more details on the rumors and what they could mean.

Those involved with the XFL’s bankruptcy are reportedly still trying to refund the $3.5 million in tickets sold to fans for the rest of the season and season tickets that were sold last season. McMahon had ordered that the tickets be refunded prior to the bankruptcy, but other creditors want that money as part of the debt, along with whatever may have been earned by selling assets. McMahon, of course, is listed as a creditor because he loaned the XFL money for the last few payrolls. McMahon buying the league later would, in theory, allow him to own the XFL without owning the $50 million in debt.

The unsecured debtors said in court documents that they believe that WWE owning 20% of the company (so McMahon could retain the intellectual rights from the first version), along with other moves, is a sign that he’s going to make a go at buying the XFL once the pandemic is over.

However, it should be noted that McMahon doesn’t have a good name in football right now for how he treated Oliver Luck and many of the coaches. Luck was fired prior to the bankruptcy declaration for ‘gross negligence’ and is currently suing McMahon for lost salary. It was speculated that this may also be a way for McMahon to get the XFL out of its current TV deal, which pays no money, as there could be value in the XFL with the ratings it had in its first few games. Of course, the ratings were on a decline by the time the pandemic hit. Another possible problem is that the venues could want money up front in order to host the XFL league again, or may not commit to it right away, as the XFL will be seen as something with no stability and having bad publicity.

It’s also believed that if Vince were to attempt bringing back the XFL again, players wouldn’t be an issue (even though many of them were also left without pay), as there are ‘tons of players’ that come out of college every year who want to play football and won’t make the NFL. The Canadian Football League is also facing financial issues which could potentially give another XFL revival an advantage.

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XFL, Joseph Lee