The XFL officially cancelled their 2020 season and laid off their employees, signalling the end of their return. Now the league has officially filed for bankruptcy.
A spokesperson for the XFL told TMZ that the COVID-19 pandemic had a huge effect on them, leading to them filing for bankruptcy.
“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.”
According to sources, it was said that the COVID-19 pandemic, which shut down the league, caused the XFL to lose “tens of millions in revenue”, forcing them to put an end to the remainder of their season and the playoff games.
It was also said that despite the hit in finances, the XFL still paid their employees their salaries through April 12th, as well as any vacation days they had accrued. The league will also refund ticket holders.
The reason for them filing bankruptcy was said to be a timing issue, in order to maximize the return to their investors.
TMZ also reported the creditors, where they listed XFL head coaches Bob Stoops ($1,083,333.33), Mark Trestman ($777,777.78), Jonathan Hayes ($633,333.33), Winston Moss ($583,333.33) and others.
Dave Meltzer also commented on this.
XFL officially declared bankruptcy, essentially Vince getting out of money owed.
— Dave Meltzer (@davemeltzerWON) April 13, 2020
