How often do you hear an owner buying his own company? Looks like that's what's going to happen with the XFL.
Reports are emerging that WWE chairman and XFL founder Vince McMahon is positioning to buy the football league out of bankruptcy.
It seems like it's going to happen as XFL president Jeffrey Pollack contacted stadiums in Seattle and St. Louis to reinstate lease agreements.
Buying out the XFL out-of-pocket seems like a potential strategy its founder is willing to do to salvage the league. It will allow McMahon to dodge the bankruptcy of his dear project.
Vince McMahon to pay XFL debts?
Creditors objected a proposal in bankruptcy to pay $3.5 million in season-ticket refunds. It could have repaired parts of its customer relationship in case the XFL goes back and running.
Such effort will only play in favor of the interest of someone who still looks to salvage a bankrupt football league, which can only be one Vincent Kennedy McMahon.
McMahon might be liquid enough to pay off its debts. He can easily rebuild the league out of his own pocket but wanted to minimize the risk in his second attempt in creating a football league.
He will have to re-hire coaches and players and others necessary to running the league. That's if they still have the morale to work for him and the XFL.
Will McMahon's plan work?Ultimately, fans won’t care one way or the other. In St. Louis and Seattle, the league thrived. If/when it resurfaces, the XFL could move franchises in cities where the league struggled to places like San Diego and Oakland, from which NFL teams recently have moved. The XFL also could try to identify another city or two (or more) like Seattle, which has an NFL team (and other pro sports) but which still flocked to the XFL games.
If McMahon is indeed trying to rebuy his own league and resurrect it for a second time, there’s a path to profitability given the impressive ratings performance on TV, the pent-up thirst for live sports, and the potential post-pandemic explosion of legalized wagering as states try to repair busted budgets.
Debates regarding the business ethics of the move notwithstanding, this potential Hail Mary play disguised as a Statue of Liberty could be the thing that lays the foundation for the league to survive and perhaps to thrive.
Can Vince McMahon salvage the XFL? What will it take for him to finally get it running? Tell us if you are in favor of the XFL making a third comeback.
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