Vince McMahon’s XFL football league has filed for bankruptcy, according to TMZ Sports.
The filing comes days after the league officially suspended all operations last week, and revealed that they were no longer planning a 2021 season. The league originally announced that the re-launch season was being suspended after 5 games due to the coronavirus pandemic, but last week they confirmed that operations were being canceled altogether.
The league reportedly lost tens of millions of dollars in revenue due to the COVID-19 outbreak, according to TMZ. Despite the financial blow, employees were paid full wages up until April 12 as well as any accrued vacation days. The league also plans to refund ticket holders.
The timing of the filing was done to maximize the return to investors. Among the creditors, the league lists head coaches Bob Stoops ($1,083,333.33), Mark Trestman ($777,777.78), Jonathan Hayes ($633,333.33), Winston Moss ($583,333.33) and others.
A league spokesperson issued the following statement to TMZ Sports:
“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.”