Both ESPN and Fox say their involvement in a future XFL under new ownership can’t be counted on, even though the defunct league had at one point hoped to include those contracts in a bankruptcy sale. Bids are due Thursday, with an auction for XFL parent Alpha Entertainment’s intellectual property set for Aug. 3. While neither contract included a rights fee, the robust promotional and programming commitment made by ESPN and Fox were seen as key to the XFL’s initial success before its abrupt cancelation and bankruptcy at the start of the pandemic.
In a filing with the U.S. Bankruptcy Court in Delaware on June 30, ESPN said it agreed to the expansive broadcast deal with the unproven XFL because of Vince McMahon’s credibility and track record. "The image and ultimate success of the XFL are heavily linked to the efforts, resources, and reputation of Vincent McMahon,” ESPN’s lawyers wrote. "If Vincent McMahon and his team of professionals are not running the XFL enterprise, then a key consideration for the (contract) has disappeared, and ESPN cannot be compelled to join in a partnership with an assignee absent ESPN’s express consent.”
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This is crucial, because McMahon himself claimed he would not seek to re-purchase the league out of bankruptcy after a group of creditors accused him of plotting such a move. In ESPN’s case, its lawyers said its compensation in the contract was intrinsically tied to McMahon personally. In a more recent filing with the bankruptcy court, Fox and XFL jointly agreed that their old contract would not be transferred to a new owner in its current form, and that they were negotiating new terms “in good faith” that would allow Fox to stick around under a new buyer.
Any hopes of quickly reconstituting the XFL would depend heavily on a media deal, especially important in light of pandemic-related restrictions on live attendance. An XFL representative declined to comment. ESPN declined comment, while Fox did not immediately respond to a request. The networks’ concerns were first reported by The Athletic.
