XFL's prospective ownership group indicated that it is planning on staging a '21 seasonGETTY IMAGES
A creditors’ committee objected yesterday afternoon to the proposed sale of the XFL announced earlier in the day, saying it should not include possible civil actions the league could have pursued but hasn’t yet. If successful, the creditors could force a delay and even substantial changes to the agreed upon price of $15M plus assumption of liabilities and up to $8.5M to settle old claims. The creditors claim the league could get money back from insiders or other business partners that exceeds $15M. They claim to have found “substantial potential causes of actions against insiders,” such as “questionable loan transactions” that "could form a significant source of recovery for the Debtor’s many aggrieved creditors.” Also, they point to earlier financial statements showing $60M worth of “potentially avoidable and recoverable” transfers before the bankruptcy. The XFL's new ownership group indicated that it is planning on execution for a '21 season, for which planning would have to begin soon (Ben Fischer, SBJ Unpacks).
WHAT'S IN STORE: CNBC’s Eric Chemi noted RedBird “may IPO in upcoming weeks.” Chemi: “With these two big brands, what can they turn the XFL into? Will it be back on TV in a year, or is this they’re buying the brand and maybe it sits there dormant for a few years?” RedBird and Dwayne "The Rock" Johnson “have a lot of money, they can buy a lot of things and maybe they’ll piece some things together” (“The Exchange,” CNBC, 8/3).
ON THE CHEAP? NESN’s Jahmai Webster said the $15M sale price “seems awfully low, but the selling point was it’s a made-for-TV product ready to take in the bubble atmosphere" (“After Hours,” NESN, 8/3). ESPN’s David Jacoby said “apparently you can now buy sports leagues" for $15M. Jacoby noted $15M “will get you a two-bedroom on the Upper East side, it can also get you an entire sports league.” Jacoby: “You know that Ice Cube woke up this morning and was like, ‘Wait, the XFL sold for $15 million? I’m about to sell the Big3’” (“Jalen & Jacoby,” ESPN, 8/3). WFAN-AM’s Gregg Giannotti: “Why would you buy the XFL when it’s failed twice? You might as well just drop $15 million out of an airplane in a wheat field.” But WFAN’s Boomer Esiason noted in 10 years, college football may not “exist anymore,” and the XFL “should be a minor league feeder system for the NFL” (“Boomer and Gio,” CBSSN, 8/3).
