The Alliance of American Football is officially dead. The league filed for Chapter 7 bankruptcy in Texas’ Eastern District today, as first reported by Front Office Sports. The bankruptcy filing comes two weeks after the league abruptly folded, leaving players on the hook to pay for allegedly team-provided housing and their own medical care.
According to documents obtained by Front Office Sports, the AAF claims assets of $11.3 million, liabilities of $48.3 million, and only $536,160.68 in cash on hand. The AAF allegedly owes CBS over $5 million, Arizona State University over $1.2 million, and MGM International $7 million. Former NFL officials Dean Blandino and Mike Pereira also claimed they are owed payments.
Shortly after the report was published, the league confirmed the news 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.”
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Per Pro Football Talk, that last bit refers to the AAF’s reported refusal to let their players sign with CFL teams. The defunct league views those contracts as assets in the bankruptcy case, and it will reportedly try to sell them to the CFL before eventually letting the players go free. Pretty nasty to hold control over their careers after the collapse of the league left them scrambling.
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