Vince McMahon planning to buy XFL out of bankruptcy?
You didn’t think Vince McMahon was really going to let the XFL go down the way it did, did you?
McMahon spent money, time, and energy reviving the XFL for a launch this year and got screwed when the pandemic hit, forcing the cancellation of the season halfway through. The XFL filed for bankruptcy, which may have drawn jeers from some corners, but as usual, McMahon knew what he was doing.
It seems that filing for bankruptcy was a strategic financial move. How do we know?
According to The Athletic’s Daniel Kaplan, the XFL’s president has reached out to representatives in St. Louis and Seattle about reinstating the leases where the local teams played. Additionally, unsecured creditors said in a bankruptcy court filing that they believe McMahon is attempting to buy back the league and its assets at a low price.
McMahon reportedly is attempting to pay $3.5 million back to season ticket holders. Season ticket holders are regarded as unsecured creditors in terms of money given to the league, and would be low on the list to receive repayment in an ordinary bankruptcy behind other lenders. However, an attempt to refund season ticket holders seems like a gesture of goodwill from someone who might be intending to restart the league.
McMahon owns 80 percent of the league through Alpha Entertainment, and WWE owns 20 percent.
There was no way McMahon would put so much into the league and just give up. He is likely planning to revive it, but will probably need new players and coaches so that he doesn’t have to pay the ones who were owed money from the canceled 2020 season. Of course, McMahon still has the lawsuit with Oliver Luck he is fighting over guaranteed pay for the league’s former commissioner.