The uphill climb has begun.
Vince McMahon has been down this road before. He started a football league, the XFL, which kicked off in 2001 and died in 2001. Startup football leagues have a very high mortality rate. The 2019 startup, the Alliance of American Football, lasted two months. The cause of death was a lack of funding. There was a claim that the AAF took in $12 million worth of revenue and had $100 million in expenses. McMahon will probably lose money because his revenue streams are limited. The AAF had no government support as in the AAF getting money or tax breaks to play in municipal stadiums and get huge revenue sources. The AAF was never in that position to call those shots. McMahon has the same problem. The AAF was unable to land a big television contract, which is an essential for a league. A startup league cannot command major money for the product. That is another problem the XFL is facing. There was also a lack of substantial corporate support for the AFF. The AAF attendance revenue was weak. McMahon may encounter the same problem. McMahon will ultimately decide the league’s future.
Startup pro leagues have not been able to last. Three American Football Leagues, the All-America Football Conference, the Continental Football League, the World Football League, the United States Football League, the XFL, the United Football League and the World League of American Football, which was backed by the National Football League, all folded. Lamar Hunt’s American Football League did merge with the NFL in 1966. The NFL took one AFL III team and three All-America Football Conference teams along with Hunt’s 10 teams. The XFL has many hurdles to jump. XFL crowds need to be large with customers willing to spend on the product because other revenue streams are limited.