AAF to creditors: There’s no money, don’t file claims

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The Alliance of American Football has a message for anyone to whom the league owes money: Don’t waste your time trying to get it.

Via Danial Kaplan of SportsBusiness Journal, the AAF’s parent company, Legendary Field Exhibitions, admitted in a Tuesday bankruptcy county filing that creditors shouldn’t bother to submit claims.

“No property appears to be available to pay creditors,” the filing said, according to Kaplan. “Therefore, please do not file a proof of claim now. If it later appears that assets are available to pay creditors, the clerk will send you another notice telling you that you may file a proof of claim and stating the deadline.”

The AAF owes more than $48 million. Seven claims, totaling $1.24 million, have been filed to date.

Of course, the creditors may not take “we have no money” for an answer. They make target others with the financial wherewithal to pay all of sum of the debts incurred, potentially under the argument that misrepresentations were made about the viability of the operation.

25 responses to “AAF to creditors: There’s no money, don’t file claims

  1. And yet the wealthy people who set this up to fail will still be wealthy, meanwhile your average american has to decide whether or not they should buy a cup of coffee or save the money for a rainy day.

  2. At what point does this become a criminal case? The AAF owes $48 million? And there response is don’t waste your time trying to collect? People have been killed over debts far smaller than that.

  3. I am a CEO. When I hear a lawyer say that it means to me go after Dundon, Polian, and Ebersol personally.

  4. This is a ponzi scheme plain and simple. Polian and ebersol should be held responsible personally for this.

  5. It absolutely should be a criminal case. This was blatant fraud, and both the NFL and the media partners of the NFL are co-conspirators that weren’t honestly representing what a phony this entire operation was.

  6. Nothing more than fraud at its highest level. Polian’s reputation is going to take a pounding over this.

  7. It’s a con.

    Of course they don’t want creditors to file more claims. More claims will only demonstrate how the AAF misled everyone into believing that they were financially sound and responsible. Polian and Ebersol are absolute scum; I hope the bankruptcy court pierces the corporate veil, and allows the creditors to go after the personal assets of these weasels.

  8. shutupbrees says:
    April 30, 2019 at 8:11 pm
    It absolutely should be a criminal case. This was blatant fraud, and both the NFL and the media partners of the NFL are co-conspirators that weren’t honestly representing what a phony this entire operation was.
    +++++++++++++++++++++++++++++++++++
    Please explain how the NFL, who has no relationship with the AAF at all, is responsible.

  9. 12brichandfamous says:
    April 30, 2019 at 8:22 pm
    shutupbrees says:
    April 30, 2019 at 8:11 pm
    It absolutely should be a criminal case. This was blatant fraud, and both the NFL and the media partners of the NFL are co-conspirators that weren’t honestly representing what a phony this entire operation was.
    +++++++++++++++++++++++++++++++++++
    Please explain how the NFL, who has no relationship with the AAF at all, is responsible.
    ——
    Right.
    Did the AAF do a time buy on the NFL Network or did the NFL pay for the rights to show some AAF games? If it was a time buy, did the AAF stiff the NFL or if the NFL payed for the rights, did the NFL pay for games never played?

    Either way that’s not a partner.

  10. If your average Joe writes $100 in bad checks it’s straight to jail. Richie Rich writes $48 Million in bad checks….

  11. If theres one thing weve learned from present leadership, bankruptcy is all the rage! Rich get richer, others get the shaft.

  12. Since the principal “owner” who made the decision to shut the league down is worth billions, it’s a shame he can hide and take advantage of bankruptcy protection.

  13. If you are dealing with a football league in its first five years, only take cash. I really want to see ESPN or SI do a deep dive on this league. Between CBS and the NFL and others – it seems like a lot of people gave this league credibility based on lies told to them.

  14. WHY IS BILL POLIAN ON SIRIUSXM NFL RADIO?
    I have stopped listening when I heard him on last week I have switched my sports station!
    Why is this guy so golden?
    Absolutely a crook to the 3rd degree.

  15. You are lucky I let you pay my bills for me.

    Mr. Corporate American.

  16. dejal says:
    April 30, 2019 at 8:52 pm
    12brichandfamous says:
    April 30, 2019 at 8:22 pm
    shutupbrees says:
    April 30, 2019 at 8:11 pm
    It absolutely should be a criminal case. This was blatant fraud, and both the NFL and the media partners of the NFL are co-conspirators that weren’t honestly representing what a phony this entire operation was.
    +++++++++++++++++++++++++++++++++++
    Please explain how the NFL, who has no relationship with the AAF at all, is responsible.
    ——
    Right.
    Did the AAF do a time buy on the NFL Network or did the NFL pay for the rights to show some AAF games? If it was a time buy, did the AAF stiff the NFL or if the NFL payed for the rights, did the NFL pay for games never played?
    Either way that’s not a partner.

    ———————————-

    Disagree completely, I believe the NFL had a backroom deal with the AAF to leapfrog the XFL to become a development league of the NFL. I believe they showed games on the NFL Network as part of this agreement. By stifling the XFL before it even began, the NFL stood to benefit. Maybe not via direct competition, but cutting off any talent pipeline that may have entered the league.

    This all fell apart when the AAF turned into a complete joke, with no clear plan or preparation, and culminated with the NFL foolishly thinking the NFL Players association would buy into the idea of them playing games for the AAF.

    The NFL wanted to stifle competition. The AAF wanted a sweetheart development deal with the NFL. The AAF was essentially Steve Jobs trying to dupe Apple into buying out his startup company that was just a fancy shell of a PC with no actual software. The media partners, like NBC (PFT) turned a blind eye to all of this despite it being right in front of their face. They even blocked all negative comments under any AAF article, which would bizarrely have more thumbs ups and positive messages than the league had viewers.

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