Vince McMahon Appears to be Playing with Bankruptcy Laws with the XFL

Posted By James Walsh on 05/20/20


Did WWE Chairman Vince McMahon declare bankruptcy on the XFL only to buy it back on the cheap later? Some people seem to think so. The Athletic has published an article by Daniel Kaplan on the current situation of the failed revival of the XFL by Vince McMahon, and if McMahon’s plan is to buy back the XFL, which filed for bankruptcy and put its assets up for sale last month. According to the report, XFL creditors believe Vince McMahon is trying buy back the bankrupt XFL for a “fire-sale price.”

Besides the XFL creditors believing this is McMahon’s plan, sources claim that XFL President Jeffrey Pollack has called venues in St. Louis, Missouri and Seattle, Washington, about reinstating lease agreements.

Additionally, Kaplan states that in a series of court filings, the unsecured creditors for the XFL expressed some concern that the declaration of bankruptcy for the league was a “cutthroat” financial strategy by McMahon in an attempt to ride out the COVID-19 pandemic and the current economic issues faced by the world. As a result, McMahon would not have to pay for the costs of operating the league, and he’d be able to later re-acquire the debtor at what’s called a “fire-sale price.”

McMahon is also facing a lawsuit by former XFL Commissioner Oliver Luck for wrongful termination and wants the remaining money he was promised in his guaranteed contract if he was terminated “without cause.”

The XFL relaunched earlier this year through his management company Alpha Entertainment and 20 percent WWE. The new season was cut short due to the coronavirus pandemic. All of the employees were later let go, aside from a small number of executives.