San Francisco, CA., United States (4E) – Just two weeks after folding during its inaugural season, the Alliance of American Football league filed for Chapter 7 bankruptcy Wednesday in Texas.
The AAF is reportedly awash in debt, owing millions of dollars to CBS, Arizona State University and MGM International.
Front Office Sports reports the AAF claims assets of $11.3 million, liabilities of $48.3 million, and only $536,160.68 in cash creating an unsustainable business model.
League officials confirmed the report in a statement.
“The AAF is committed to ensuring that our bankruptcy proceeds in an efficient and orderly manner. Pursuant to the bankruptcy laws, a trustee will be empowered to resolve all matters related to the AAF’s remaining assets and liabilities, including ongoing matters related to player contracts.”
Not only did players get stuck with housing and medical costs when the AAF collapsed but they also haven’t been able to offer their services to some other existing football leagues.
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