A U.S. Bankruptcy Court Judge on Friday approved the sale of the defunct XFL to the group led by Dwayne “The Rock” Johnson, his business partner Dany Garcia and RedBird Capital Partners. The deal is expected to close by Aug. 21. A group of unsecured creditors had objected after the sale was announced on Monday, claiming it would forestall legal claims or other actions that could generate more than the $15M sale price. But they dropped their objections after some late changes to the sale contract that “should enhance the recoveries that unsecured creditors will receive,” said the creditors' lawyer, Greenberg Traurig Partner Howard Steinberg. The Rock/RedBird group was the only qualified bidder for the league, which will face steep challenges in returning to play in the short term, despite its good reviews and promising relaunch in February, before the pandemic shut down play.
MOVING FORWARD: Judge Laurie Selber Silverstein said, “The marketing of these assets was extensive, it was done pursuant to an approved process, and it was a multi-month process which certainly provided all parties an opportunity to bid on the assets if they were interested. ... There is no suggestion that there is any collusion in the process or anything other than good faith, arm's length negotiation.” In addition to paying $15M, the buyers will assume certain liabilities and will pay up to $9.2M to settle outstanding claims they inherit. Garcia has told reporters this week they would like to relaunch the league in '21. But that step depends on securing media rights deals, not to mention rehiring hundreds of employees and reconstituting rosters.
