XFL Bankruptcy Update

As noted before, the XFL announced this past April that they were shutting down and filing for bankruptcy due to financial issues related to the cornavirus pandemic. Several of the league’s unpaid creditors were unhappy over allegations that Vince McMahon was attempting to purchase and revive the league in order to avoid having to pay the league’s current debts – allegations that were denied by McMahon.

The Athletic reported several new details regarding the issues that the league’s unpaid creditors had with both Vince McMahon and the league itself. On the last day of the league’s operations, around $2.1 million was paid out that went mainly to WWE and none to the majority of the league’s creditors. It was also reported that in the final 90 days prior to filing for bankruptcy, the XFL made nine payments to WWE totaling around $2.3 million, with another $203,424.65 still owed.

It was also reported that should someone end up buying the league, the first $9 million of that sale, assuming the deal reaches that amount or over, will automatically go to Vince McMahon. This reportedly is due to McMahon loaning that amount of money in late March for the league to remain open and to make himself the first secured creditor in line for repayments.