It ain’t over til it’s over.
It is all over for the Alliance of American Football with the scoreboard reading Chapter 7. For those who don’t know what Chapter 7 is, the explanation is reasonably simple. You have gone out of business and filed the notice with a court. The next step is the court appointing a trustee to take a look at what you have in assets and what your creditors want. The trustee will figure out how to sell those assets, like players contracts. The AAF management signed a bunch of players to longer term contracts and has decided a few can go to the National Football League but not to the Canadian Football League. Apparently the players’ contracts, not the real human beings who played in the AAF, are sellable assets. There are lawsuits aimed at getting those players free of their AAF commitments. There is no AAF anymore so in theory the players should be free to pursue other football opportunities. The AAF had about $500,000 in cash on hand and claimed slightly more than $11 million in assets. The AAF’s liabilities were more than $48 million. Chapters 1-6 of the AAF book will eventually be written and used in a small way in sports business management college courses.
The AAF had someone put out a statement expressing sorrow. “We are deeply disappointed to be taking this action. The AAF is committed to ensuring that our bankruptcy proceeds in an efficient and orderly manner. Pursuant to the bankruptcy laws, a trustee will be empowered to resolve all matters related to the AAF’s remaining assets and liabilities, including ongoing matters related to player contracts.” Meanwhile, Vince McMahon’s XFL continues to put together its business and the XFL Commissioner Oliver Luck said that his business views the AAF’s failure as a cautionary tale. The XFL needs luck and money to succeed.