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XFL files for Chapter 11 bankruptcy

After suspending operations last Friday, the XFL today filed for Chapter 11 bankruptcy.

The XFL issued a statement on the decision:

The XFL quickly captured the hearts and imaginations of millions of people who love football. Unfortunately, as a new enterprise, we were not insulated from the harsh economic impacts and uncertainties caused by the COVID-19 crisis. Accordingly, we have filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code. This is a heartbreaking time for many, including our passionate fans, players and staff, and we are thankful to them, our television partners, and the many Americans who rallied to the XFL for the love of football.

The bankruptcy was filed for by Vince McMahon's Alpha Entertainment. It lists that the league has both $10-50 million in estimated assets and estimated liabilities.

McMahon owns 100 percent of Class A shares and 76.5 percent of Class B shares, while WWE owns 23.5 percent of Class B shares.

Sports Business Journal's Austin Karp tweeted: "An XFL source tells me the league is in fact for sale as part of bankruptcy process. XFL still intends to return all ticket funds to fans (as @BenFischerSBJ reported Friday)." ESPN also wrote that a source close to the bankruptcy filing said the XFL could be sold during the process.

TMZ Sports reported that sources told them the coronavirus pandemic caused the XFL to lose "tens of millions in revenue." Their report also stated that XFL employees were paid their full wages up until April 12, along with any accrued vacation days.

XFL head coaches and general managers Bob Stoops ($1,083,333.33), Marc Trestman ($777,777.78), Jonathan Hayes ($633,333.33), Winston Moss ($583,333.33), Kevin Gilbride ($583,333.33), June Jones ($583,333.33), and Jim Zorn ($583,333.33) are listed among the league's top 25 creditors with the largest unsecured claims.