Alliance of American Football Update: Bankruptcy
“We are deeply disappointed to be taking this action. The AAF was created to be a dynamic, developmental professional football league powered by an unprecedented alliance between players, fans and the game. The AAF strove to create new opportunities for talented players, coaches, executives and officials while providing an exciting experience for fans. We are proud of the fact that our teams and players delivered on that goal.
We thank our players, coaches and employees for their commitment to the game of football and to this venture. Our fans believed in the AAF from the beginning, and we thank them for their support. We are hopeful that our players, coaches and others will find opportunities to pursue their football dreams in the future.”
As we previously covered in our two-part “Series on the Alliance of American Football,” on April 2, 2019, the AAF suspended football operations, just two weeks before the end of its inaugural season. As news surfaced, it became clear that the AAF was already in severe financial straits in its second week of operations. However, some reported that the AAF might have been in financial straits as early as December 2018.
The AAF’s bankruptcy petition has verified many reports of financial difficulties. Pursuant to the bankruptcy petition, the AAF has $11.3 million in assets, but $48.3 million in liabilities. Further, the AAF only has $536,160.68 in cash, despite the money recently invested by Tom Dundon. In a statement the league said, “[t]he AAF is committed to ensuring that our bankruptcy proceeds in an efficient and orderly manner.”