Earlier this week the XFL filed for Chapter 11 bankruptcy just days after suspending day-to-day operations and laying off most of its staff, including CEO and Commissioner Oliver Luck.
According to the Wall Street Journal, lawyers for the XFL outlined plans to sell the league during its debut hearing Wednesday in the U.S. Bankruptcy Court in Wilmington, Del. A $3.5 million loan offered by XFL founder and World Wrestling Entertainment Inc. Chairman Vince McMahon includes milestones that require a judge to approve a potential sale by July 15.
There’s a significant difference between Chapter 11 and Chapter 7 bankruptcy. The latter option, which the AAF pursued, entails complete and total liquidation of the business. Chapter 11 keeps the possibility of an eventual return, following reorganization of the business and handling of the debts.
As explained by the Wall Street Journal, an initial hearing in bankruptcy court entailed XFL lawyers outlining a plan to sell the league by July 15. The goal, specifically, will be to sell the XFL name, trademarks, and intellectual property, like the slogan “For the Love of Football.” The XFL also wants to sell equipment, merchandise, and other property owned by the league.
Something to keep in mind, just because the league has a plan to sell by mid-July doesn’t mean they will find a buyer. Additionally, if they do find a buyer it’s still not a guarantee that the XFL will return. If the XFL does find a buyer and the league returns, it’s hard to say what it may look like in its next iteration.
We’ll keep you posted as more information comes out on the matter. Do you think the XFL will find a buyer? If so, do you think it’ll return? Let us know down in the comments below or join the conversation on Discord.