The XFL officially has new owners, but the details are still being sorted with the ongoing bankruptcy case. Although we don’t know when the XFL is returning, or if they will play in a bubble; the league has still been actively trying to secure as many of those locations as possible.
Raymond James Stadium, home of the Tampa Bay Vipers, is one of the locations that had agreed to continue its lease agreement. That being said, now that the dust has settled, the Tampa Sports Authority (TSA) has filed a limited objection in the XFL’s bankruptcy case.
It all stems from the amount of money that has been identified as owed to the TSA under the “proposed cure amount”.
The Debtor indicated in the Cure Notice that it intended to possibly assume a lease agreement with TSA for the continued use of the Buccaneers Stadium.
Pursuant to the Cure Notice, the Debtor identified $0.00 as the amount it alleges to be owing to TSA under the Proposed Assumed Contract (the “Proposed Cure Amount”).
Looking further at the filing, the TSA has disputed the cure amount and is looking to collect $90,000. This amount accounts for a $30,000 termination fee per game not played during the 2020 season.
TSA agrees to the assumption of the Proposed Assumed Contract; however, TSA disputes the Proposed Cure Amount in the Cure Notice. Pursuant to the Venue Use Agreement, TSA reflects a cure amount of $90,000.00. This figure consists of a $30,000 termination fee per game not played during the 2020 XFL season, as agreed to by the Debtor under Article 4, Section 4.2 of the Venue Use Agreement. See Exhibit “1,” pgs. 18–19. The Debtor terminated the scheduled March 14, March 21, and April 12, 2020 scheduled games and as such, owes $30,000.00 per game, totaling $90,000.00 in prepetition termination fees to TSA.
Could this impact the Tampa Bay Vipers? Possibly. If there isn’t an agreement made between both parties the agreement could be ended. Alternatively, the TSA has no objection to the assumption of the lease agreement provided the amended cure amount has been paid.
TSA has no objection to the assumption of the Venue Use Agreement provided the proper cure amount is paid. Accordingly, TSA files this Limited Objection to the Proposed Cure Amount set forth in the Cure Notice.
At this point, it’s up to the bankruptcy court to agree or disagree with the TSA’s cost assessment. Regardless, we’re thinking there shouldn’t be any issues getting this sorted. We’ll keep you posted as more information comes out on this matter.