AAF creditors fill 1,117 pages of bankruptcy filing

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The AAF bankruptcy filing is nearly as big as the Vikings’ new playbook.

Via Daniel Kaplan of SportsBusiness Journal, the now-defunct football league’s bankruptcy filing has a list of creditors that covers 1,117 pages.

The AAF owes MGM the most, at $7 million. MGM reportedly took steps to ensure that it would assume ownership of the league’s real-time gambling technology in the event that the AAF went belly up.

The next biggest creditor is CBS, which the AAF owes $5.19 million. An advertising firm has unsatisfied bills of $2.275 million, and a law firm is owed $2.4 million. Arizona State University, where the Hotshots played its home games, has a claim in the amount of $1.2 million.

In all, the AAF’s liabilities exceed $48 million, and it has less than $12 million in assets.

31 responses to “AAF creditors fill 1,117 pages of bankruptcy filing

  1. ” liabilities exceed $48 million, and it has less than $12 million in assets.”
    ———————————
    So, about two bits on the dollar. Sounds about right since it seems like the league was apparently run like a “two bit” organization.

  2. It’s interesting that they owe CBS money. Did the AAF pay CBS to broadcast the games? Usually the network pays the league for broadcast rights and the opposite arrangement would be … peculiar.

  3. “An advertising firm has unsatisfied bills of $2.275 million”

    Perhaps the most shocking line in the article. I had no idea they even had an advertising budget.

  4. Good luck with that. Stinks for vendors and legitimate everyday people that got the shaft and didn’t get paid. I filed an $8K claim for cash owed in bankruptcy court once…..8 years later I got $39. Yippie!

  5. “It will be a tremendous league, it will a great league, it will be so much better than any league in history. People are going to make so much money. These big strong players come up to me with tears in their eyes and say how great I am for saving football.”

    Bankrupt, uh?

  6. Everyone is blaming Dundon but shoot be got out when he saw it wasn’t gonna work. I don’t blame him. The real crime is on Mr Ebersol and Polian. They lied to everyone and said there was enough money for two year. They should held liable in my humble opinion. Who agrees??

  7. Wait I was told this was going to be a the next great thing. It was going to flourish and produce thousands of NFL stars. I guess I wasn’t crazy saying minor league football doesn’t work.

  8. “It’s interesting that they owe CBS money. Did the AAF pay CBS to broadcast the games? Usually the network pays the league for broadcast rights and the opposite arrangement would be … peculiar.”
    ______________

    Could they possibly owe them for advertising that never got to air due to them not finishing the season? Like CBS built in a clause protecting themselves if the league did go under?

  9. I’m wondering if the CBS obligation came from cameras and crews, the cost of actually filming/broadcasting the games themselves. That would make some sense.

  10. Were are all the people that were commenting here back in Feb. that this league was “better than the NFL”, was”Real Football” and was going to “Challenge the NFL”?

    Say what you will about Goodell and NFL, fans simply are not going to watch mediocre football and horrible QB play when there are so many other entertainment options out there. Everyone was on a “Super Bowl high” and could not wait for “more football”. Then the novelty of a new league wore off and fans saw what was out on the field and lost interest.

  11. Wow. An abject lesson in the merits of a spring pro football league without the net of the NFL. Apparently, it’s just not possible. And it looked so promising. All games televised. Decent uniforms. Play improving over the season. And then….poof! It’s kind of like buying a new car and wrecking it before you take that first big trip in it.

  12. When the principal “owner” is worth over $1 Billion all $48 Million in liabilities should be paid. Massive issue with our system where wealthy can hide behind belly up companies that they drove into the ground

  13. Minor league football CAN work! Among many major issues the AAF did not develop any story lines or interest in their players. You have to make the players interesting, especially if you don’t know most of them. This is where I can see the XFL working, they do this for a living with the WWE. The other glaring issue was how hard it was to find a way to watch.I don’t have CBS Sports Net – and the app version of the games was without commentary. Its got to be accessible and easy! It can work, they just have to do it better and be FAR more detail oriented.

  14. To the person who mentioned WWE building characters for XFL, it reminds me of another thing XFL will have an advantage with.

    The WWE Network. If XFL can branch off the WWE Network’s tech to create a subscription-based football service, they can collect revenue directly from fans who are unable to attend live games.

    You’re more likely to find 10 people nationally to pay $5 each to watch the stream, versus finding one person locally to pay $50 to attend the game in person.

  15. Glad it’s only 1,117 pages. I thought it would be some ridiculously high number. Somewhere around 1120 pages.

    Sarcasm aside, that’s a lot of data on those pages.

    AAF – An Accounting Fiasco!

  16. Is it normal to just assume a startup business would immediately turn a profit that could be used to sustain itself? It seems to me that a brand new business would take some time to establish itself enough to make a profit such as the one they were assuming they should immediately get. At what point would fraud be a consideration for those involved?

  17. yadda yadda americans sue. rich guys will get to keep most of their money by declaring bankruptcy. money they do lose will go big creditors. people who really need money with be lucky to get pennies. business wrecked. just another day in corporate america. reality in usa lose lots of money you will be okay. lose small amount you credit rating is toast and you never get the money back.

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