Report: UCF loses more than $1 million over AAF implosion

AP

When it comes to the disappearance of the Alliance of American Football, players won’t be the only ones left holding the bag.

According to WFTV.com, the University of Central Florida will lose more than $1 million as a result of the shuttering of the league. Per the report, the AAF did not pay UCF under a lease that made the school’s football stadium available for Orlando Apollos home games. Apparently, the school never sent an invoice to the team.

Now, it’s likely too late to do anything, other than get in line with all other creditors for whatever carcass is available to be picked over in bankruptcy.

The Apollos had average attendance in the range of 20,000 per game.

It will be interesting to see how many similar stories emerge in the coming days, as the dust continues to settle on a league that obviously wasn’t sufficiently funded to get through its initial season.

54 responses to “Report: UCF loses more than $1 million over AAF implosion

  1. Brand new startup league and UCF didn’t get ANY of the stadium rent upfront? Can’t wait to rent the place out for my kid’s birthday party!

  2. Oh man. The lawsuits are going to be extravagant, and a certain chairman who invested for two weeks is the face of them, cause after all – he does have majority majority of the league.

    Good move Dundon, good move!

  3. This is ridiculous. So they just told the AAF “No problem! Go ahead and use our facilities and we’ll get the money from you later…”?

    But I can guarantee you that if a student is late paying their tuition, they won’t hesitate to put a hold on their account and prevent them from registering for a class.

  4. Stupid school administrators have no business sense either locally or at the college level. But the taxpayer always pays for their stupid mistakes. Zero accountability. This league was doomed from the beginning. Boring in every way.

  5. No invoice?!? That’s to be expected from a public college administration. Unlike the private sector, the administrators won’t get fired. What sucks is that the taxpayers of Florida are the ones on the hook for the unreimbursed costs of hosting the games.

  6. They didn’t lose $1M. They just didn’t receive the benefit of the bargain – $1M they thought they were going to get. It’s not like they paid the AAF football $1M and are not getting it back. They may have even made a profit on parking and concessions on a days the stadium would otherwise have been empty. These guys are pretty far down the list on people who got screwed.

  7. bull……… Dundon came if after the first game and pledged 250 mil as long as things went as he was told they would. He always said that .. that’s why he didn’t just hand over $250 mil

  8. Awe! Too bad! Get in line! Pay the players first. Everybody else can fight for the crumbs.

  9. The Apollos had average attendance in the range of 20,000 per game.
    =================================================

    That’s more than the Redskins or Bucs.

  10. Whatever they are saying publicly, the XFL execs must be fairly concerned in the lack of sustainability for a ‘minor league’ football league. The college game has youth and rivalries and creativity, loyalties and an immense built-in following. The NFL fields the best athletes on the planet doing insane things.

    In the middle you have the guys who are too old for one and not talented enough for the other. Sports fans would rather watch hockey, basketball, or baseball. The hardest of Hard core football fans might follow it and that’s it.

    No one wants to lose 3 hours of their life watching bad football.

  11. Do Floridians submit anything on time?

    As much as this is a complete and utter failure by Bill Polian and Rich Ebersol, failing to submit and invoice is how to fail in business 101.

  12. Even if the school had billed them, the AAF knew they were going under weeks ago, they would’ve never been paid anyway. This league was obviously doomed I have no idea why anybody invested. At least a few players and coaches got a chance to make some cash before they went out of business.

  13. Dundon only got involved a few weeks ago, there was clearly no plan in place other than a Hail Mary to a guy with a background in payday lending…

  14. hendricks83 says:
    April 5, 2019 at 5:54 pm
    Hopefully they go after Dundon.
    —————————————-

    Nothing short of amazing how this is sticking to Dundon rather than Ebersol & Polian who authored the disaster.

  15. We all love the NFL and understand its the original. It would be great if the National Football League could help the AAF.

  16. The fact that UCF “never sent an invoice” has no significance. Landlords simply don’t send invoices. Hell, most jurisdictions don’t even require landlords and tenants to put leases in writing. But that doesn’t change the fact that a tenant owes the rent it agreed to pay.

    Sounds to me like this reporter talked to a source from UCF who told him or her that the AAF stiffed UCF for the rent it owed. Then the reporter talked to a source from the AAF who told him or her that they never received an invoice as a way to deflect blame.

  17. Go after Polian and Ebersol. Built a house of cards and sold it as something else. Ponze scheme that’s all it was.

  18. “Hell, most jurisdictions don’t even require landlords and tenants to put leases in writing.”

    I don’t think you’ve ever leased anything, lol. The Bankruptcy judge will appoint a trustee to gather all debts (including UCF) and present them as part of the case.

    The bigger question has to do with the gambling app that Dundon allegedly pilfered. I imagine the app is the only thing with any value.

    In the coming bankruptcy case the first issue will to establish ownership of the Intellectual Property. If it is a league asset it will be monetized to pay creditors. However, if Dundon somehow manages to have it shielded – then the creditors are screwed.

    I’d like to see the court really stick it to Dundon. I’m sure he got involved for the sole purpose of acquiring their gambling app. The fact that the league was not viable to begin with really doesn’t matter – he jumped in to get the gambling app on the cheap and to he!! with other people, players, etc.

  19. montgomeryfunke says:
    April 5, 2019 at 8:34 pm

    The fact that UCF “never sent an invoice” has no significance. Landlords simply don’t send invoices. Hell, most jurisdictions don’t even require landlords and tenants to put leases in writing. But that doesn’t change the fact that a tenant owes the rent it agreed to pay.

    ——————–

    First, whether or not Florida required a written Commercial Lease Agreement is meaningless – a public entity such UCF would have required a lease agreement to mitigate the risk of another entity using their facilities and to limit their liability.

    Second, oral lease agreements are extremely difficult to enforce as any attorney can tell you – right Florio.

    Third, payments in this contract structure typically would have been timed to each event with a either a security deposit and / or a surety against the AAF’s failure to meet its contractual obligations.

  20. these are classless people!!! players having to pay their own hotel bills..find their own way home…and medical bills. now they are saying ucf never sent a freakin invoice. so without a bill u didnt know you owed ucf….seriously???? classless just classless.

  21. The money should have been paid up front. You collect the full amount old upfront as a deposit. You can’t check into hotel without the full amount reserve against the Amex

  22. UCF is not the home of our best and brightest here in Florida. They actually celebrated with a “national championship” parade for their football team even though they didn’t even make the playoffs. I think they are the school that started the “FloridaMan” degree.

  23. But I can guarantee you that if a student is late paying their tuition, they won’t hesitate to put a hold on their account and prevent them from registering for a class.

    Oh..it gets even better….if you owe money for a parking ticket on campus, they will withhold issuing your degree until you pay it !

  24. It’s obvious that the league expected to last until the end of their league year to tie up all of their loose ends. Irresponsible move on their part, but starting a league from scratch is impossible otherwise-unless you have mega-millions in the bank already.

    They expected Dundon to hold up his end of the agreement. He didn’t. They went belly up. And their naivety is what got them here-except for Dundon, I suppose. He’s just greedy.

  25. I think the part that bothers me the most is that, for all intents and purposes the NFL has a monopoly on American Football. And the way the AAF crashed and burned, only serves as a deterrence of any future attempt to compete with the NFL. The build it and they will come mentality of the AAF was obviously flawed. The university took a chance on future dividends by allowing use of its facility to an entity which had not yet shown its ability to raise enough revenue to cover operational costs. Had the league succeeded, the University would have been in position to make lots of future revenue that could be used to support the campus. So as bad as I feel for the University, they surely understood the risk/reward before allowing the AAF to use its facilities.

  26. ak185 says:
    April 6, 2019 at 10:12 am

    They expected Dundon to hold up his end of the agreement. He didn’t. They went belly up. And their naivety is what got them here-except for Dundon, I suppose. He’s just greedy.
    ————————————————————————————–
    WRONG. Dundon bailed out the league and expressly had a clause that he could withdraw his investment at ANY time if he did not like what he saw. He knew this league was a crap show, and he drew the line. That’s being greedy? I suppose he should be dumping money into this failure?

    The fact that you, and a ton of others keep blaming Dundon for the failure, show me that collective reading comprehension stops after the headline. The BLAME here falls fully on Ebersole/Polian and everyone that put this “business plan” together. First rule of thumb when opening a business is you need to have enough capital to sustain losing money for the first year. These clowns were out of money after week ONE. If not for Dundon, the league would have folded then.

  27. UCF……..Enough said. This is a University that tries to bill itself as the largest University in the state (enrollment-wise), yet all that is needed to be accepted is a heartbeat. Makes it far easier to explain how they get away with no concern about the Florida citizenry that ends up paying for their nonchalance re: finances.

  28. The Apollos had average attendance in the range of 20,000 per game.
    ______________________________________________

    HEY that’s way better than the Chargers had at their home games!

  29. The Bucs too, they tried giving tickets away and they still couldn’t fill 1/4 of the stadium!

  30. bpacha77511 says:
    April 5, 2019 at 11:37 pm
    these are classless people!!! players having to pay their own hotel bills..find their own way home…and medical bills.

    _________________________________

    WOW Paying their own medical bills? That sounds eerily similar to our wounded VETS during the Bush and Obama administrations!

Leave a Reply

You must be logged in to leave a comment. Not a member? Register now!