You might remember the All-American Football League, the "challenger" pro league meant to challenge the NFL. (This is the one that drafted players from near their college area; Snarktastic had someone sneak into the draft.) Well, this will come as a shock to you, but ... it looks like the league might fold before it even plays a down.
In an attempt to secure kickoff of its inaugural season as well as its long-term future and success, the All American Football League® has begun discussions to explore multiple financing options.
Since inception, the League's finances have been indirectly tied to the $300 billion federally guaranteed student loan asset backed securities market. In August, the sub prime mortgage crisis began spreading into other sectors such as municipal bonds and federally guaranteed student loans. The situation, which was considered to be temporary at the time, has continued to worsen. Despite the fact that the Federal Reserve has repeatedly lowered interest rates during this financial crisis, their efforts have not yet restored liquidity in many asset backed markets, including municipal bonds and student loans.
Ha! The problem with the league is the subprime lending crisis! Of course! It's the same thing that took down the ESPN Phone, sure.
So Much For The All-American Football League [Orlando Sentinel]
The All-American Football League May Fold Before It Starts [FanIQ]