REPORT: Creditors Think Vince McMahon Is Trying To Secretly Buy Back The Bankrupt XFL
Vince McMahon seems to be up to his old tricks.
The coronavirus pandemic killed the reboot of the XFL 2.0 as the first season came to a sudden end despite the league being widely popular and successful. Soon, employees would be fired and the league would file for bankruptcy.
Everything seemed dead in the water until a report by The Athletic’s Daniel Kaplan that stated there was some evidence that suggested McMahon is not done with the XFL and creditors truly believe McMahon is actually trying to force a quick sale of the defunct league’s assets to him in an attempt to reboot the rebooted league once again.
“A committee of unsecured creditors had plenty to say Tuesday in a series of court filings. Objecting to Alpha Entertainment’s proposal to pay $3.5 million in season ticket refunds, the committee wrote, “This is an unnecessary expenditure designed to buttress the Debtor’s argument that an abbreviated sales process is required and is being sought to further the efforts of the debtor’s controlling equity holder/secured lender, Vincent McMahon (“McMahon”), to acquire the debtor at a fire-sale price. … The debtor cannot possibly know at this time whether issuing refunds to season ticket holders will preserve the value of the debtor estate’s or benefit any creditor, other than possibly McMahon.”
In other words, the only reason to pay season ticket holders for games they did get would be to ensure goodwill to McMahon for if and when he returns with the XFL. The season ticket holders are unsecured creditors, so the chances they get paid in an orderly liquidation would be remote.
The committee also questioned why XFL headquarters is still open and executives like Pollack are drawing salaries.”
One only wonders what McMahon has up his sleeves, but it appears he’s going to give it another try.
Third time’s a charm?