There's more bad news for Vince McMahon's XFL today as following the news that the football league had suspended operations and laid off staff, it's been revealed that they've now also filed for bankruptcy. Most surprising, however, is the news that WWE actually owns 23.5% of the company. That's despite denials that they're two completely separate entities.
Creditors listed include Bob Stoops ($1M), Marc Trestman ($777K), Ticketmaster ($655K) a number of coaches ($583K), and a MetLife Stadium lease ($368K).
Vince McMahon's plan was to spend $300 million over the next three years to secure a big-money television deal, and the XFL had already reached TV deals with ESPN, FOX, ABC, and FS1 to air its games. This is bound to hurt WWE's stocks (which already aren't great), and XFL issued the following statment to TMZ about the news:
"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."
After losing tens of millions of dollars in revenue, this was perhaps inevitable, but it's another embarrassing outcome for Vince McMahon as this is the second time the XFL has obviously failed. This time, though, it's fair to say it was out of the WWE Chairman's control.