It has been a rough week for McMahon and his businesses.
In the end, Vince McMahon decided bankruptcy was the most fitting way to put his latest football venture into the dustbin of failed sports leagues history. Alpha Entertainment, which was doing business as the XFL, filed for Chapter 11 bankruptcy protection although it was not exactly clear how much cash Alpha Entertainment had on hand or how much Alpha Entertainment owed creditors. McMahon claimed he was ready to invest hundreds of millions of dollars into the venture and was going to give the league at least three years to see if it would be viable. The XFL suspended 2020 operations after five weeks because of the COVID-19 outbreak in the United States but McMahon vowed to return in 2021. On April 10, McMahon pulled the plug.
McMahon did not have the necessities to survive. Looking at the bankruptcy filing, you can see he did not have government support in sweetheart leases with cities for his eight outlets. Five are the biggest creditors are the people who run stadiums. The XFL owes the St. Louis Sports Commission $1.6 million. McMahon didn’t have much cash coming in from television even though he had deals with some of the biggest names in sports-television partnerships. It appears that McMahon was not able to get much capital from corporate partners. McMahon also didn’t get much money from selling tickets. McMahon’s football league got off to a good start with TV ratings in week one but those ratings had fallen by week five. New York and Los Angeles were poor XFL markets. St. Louis was probably the best XFL spot and Seattle was a good XFL outpost. Could there be an XFL revival? It is possible as the entity could be sold during the bankruptcy proceeding. McMahon has failed twice in trying to present a late winter-spring football league. He is not the only one.