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Author Topic: Vince McMahon could be trying to buy the XFL  (Read 893 times)
CF DolFan
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cf_dolfan
« on: May 20, 2020, 11:02:50 am »

Not sure I understand this as i thought he already owned them.  Either way it doesn't seem to me that McMahon will ever quit trying.

As the bankrupt XFL looks for a buyer, the buyer could be its founder.

Via Daniel Kaplan of TheAthletic.com, XFL creditors “seem to believe” McMahon is positioning to buy the league out of bankruptcy. Separately, XFL president Jeffrey Pollack has contacted stadiums in Seattle and St. Louis about reinstating the league’s lease agreements.

The XFL declined comment to Kaplan regarding the potential strategy that would, if effective, allow McMahon to escape debt at a time of devastated revenue and re-emerge on the other side of the pandemic with a clean slate.

The clues as to the creditors’ beliefs come from their objection to a proposal in bankruptcy to pay $3.5 million in season-ticket refunds. The committee of creditors wrote that the payment “is being sought to further the efforts of the debtor’s controlling equity holder/secured lender, Vincent McMahon . . . to acquire the debtor at a fire-sale price.”

The ticket refunds would be aimed at bolstering relations with customers, in anticipation of a future business arrangement.

If that’s McMahon’s plan, and if it succeeds, he’d have to rebuild the league from the ground up, re-hiring coaches and players and others necessary to running the league. Anyone who previously worked for the league and was stiffed in any way may not be inclined to return (most notably, Oliver Luck won’t be back as the Commissioner), but if folks want to work in football and unless they’ve landed in the NFL, it’s not as if they have many alternatives.

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.


https://profootballtalk.nbcsports.com/2020/05/20/vince-mcmahon-could-be-trying-to-buy-the-xfl/
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MyGodWearsAHoodie
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« Reply #1 on: May 20, 2020, 01:16:34 pm »

Not sure I understand this as i thought he already owned them.  Either way it doesn't seem to me that McMahon will ever quit trying.

Yes he owns them.  But he is not personally responsible for the debt.

Lets say you formed an LLC to open a business. Thru a serious of very poor business decision you now have $50,000 in assets and $1 million dollars in debt.  You are not personally liable for the million dollars in debt.  The business declares bankruptcy. The  assets get sold and each debt holder gets 5 cents on the dollar.  But wait you still believe in the business and have $50k in a bank account so decided to buy the business.

Basically that is what he is trying to do.

Knew someone who did something similar with a house that was foreclosed.  She and her husband bought a house for $1.1 million at the height of the housing bubble.  Three years later they lost it to foreclosure.  Her mom and dad bought it at auction for $350,000 and rented it to them for the new mortgage rate (which they could afford).  When her parents died she inherited it. It cost her parents a lot less than giving them the amount of money necessary to avoid foreclosure.
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Phishfan
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« Reply #2 on: May 20, 2020, 01:38:44 pm »

Slimy. Move but exactly what I would expect from him.

This is kind of in line with a question I had about Dave's landlord,  does the business entity that provided him the check even still exist under the same name?
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EDGECRUSHER
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« Reply #3 on: May 20, 2020, 02:19:25 pm »

Yes he owns them.  But he is not personally responsible for the debt.

Lets say you formed an LLC to open a business. Thru a serious of very poor business decision you now have $50,000 in assets and $1 million dollars in debt.  You are not personally liable for the million dollars in debt.  The business declares bankruptcy. The  assets get sold and each debt holder gets 5 cents on the dollar.  But wait you still believe in the business and have $50k in a bank account so decided to buy the business.

Basically that is what he is trying to do.

Knew someone who did something similar with a house that was foreclosed.  She and her husband bought a house for $1.1 million at the height of the housing bubble.  Three years later they lost it to foreclosure.  Her mom and dad bought it at auction for $350,000 and rented it to them for the new mortgage rate (which they could afford).  When her parents died she inherited it. It cost her parents a lot less than giving them the amount of money necessary to avoid foreclosure.

Seems like the type of thing you wouldn't be allow to do because it's so obviously unethical and skirts some legal issues. Then again, when lawyers and bankers and politicians get together to make laws, anything is possible.

The article put it best in the middle, you might be pissed at Vince for this, but football jobs are hard to come by so you will begrudgingly come back to work.
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MyGodWearsAHoodie
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« Reply #4 on: May 20, 2020, 02:59:21 pm »

Seems like the type of thing you wouldn't be allow to do because it's so obviously unethical and skirts some legal issues. Then again, when lawyers and bankers and politicians get together to make laws, anything is possible.

The article put it best in the middle, you might be pissed at Vince for this, but football jobs are hard to come by so you will begrudgingly come back to work.

Judge could block it, if creditors object.  But if he is offering more money than anyone else, it is in the creditor best interest to sell to the highest bidder.
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EDGECRUSHER
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« Reply #5 on: May 20, 2020, 03:10:38 pm »

Judge could block it, if creditors object.  But if he is offering more money than anyone else, it is in the creditor best interest to sell to the highest bidder.

Yeah, basically comes down to "Do you want to get bent over hard or get bent over moderately?".
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CF DolFan
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cf_dolfan
« Reply #6 on: May 20, 2020, 05:19:08 pm »

Yes he owns them.  But he is not personally responsible for the debt.

Lets say you formed an LLC to open a business. Thru a serious of very poor business decision you now have $50,000 in assets and $1 million dollars in debt.  You are not personally liable for the million dollars in debt.  The business declares bankruptcy. The  assets get sold and each debt holder gets 5 cents on the dollar.  But wait you still believe in the business and have $50k in a bank account so decided to buy the business.

Basically that is what he is trying to do.

Knew someone who did something similar with a house that was foreclosed.  She and her husband bought a house for $1.1 million at the height of the housing bubble.  Three years later they lost it to foreclosure.  Her mom and dad bought it at auction for $350,000 and rented it to them for the new mortgage rate (which they could afford).  When her parents died she inherited it. It cost her parents a lot less than giving them the amount of money necessary to avoid foreclosure.
I guess I didn't realize he owned it through a company. I know several people who have bankrupted several business and yet they are still in business under a different name.
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MyGodWearsAHoodie
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« Reply #7 on: May 21, 2020, 02:06:02 pm »

I guess I didn't realize he owned it through a company. I know several people who have bankrupted several business and yet they are still in business under a different name.

It is pretty easy to declare bankruptcy and recover unless the reason for the bankruptcy is uninsured medical debt of yourself or a loved one. Those people are stuck with the debt until they die. 
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BuccaneerBrad
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« Reply #8 on: May 24, 2020, 06:30:06 pm »

It is pretty easy to declare bankruptcy and recover unless the reason for the bankruptcy is uninsured medical debt of yourself or a loved one. Those people are stuck with the debt until they die. 

Or student loan debt for that matter
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EDGECRUSHER
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« Reply #9 on: May 26, 2020, 03:47:42 pm »

McMahon said today that he won't be a bidder for the league. I think the creditors were fighting it really hard and it wasn't worth it to him.
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DenverFinFan
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« Reply #10 on: June 25, 2020, 08:12:31 pm »

https://www.google.com/amp/s/www.espn.com/xfl/story/_/id/29297846/how-xfl-came-crashing-its-collapse-means-future-spring-football%3fplatform=amp

The only good thing about coronavirus is it tanked the XFL. I hate that slimy weasel
and Trump friend McMahon. Easily one of the worst American villains.
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BuccaneerBrad
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« Reply #11 on: August 03, 2020, 12:15:13 pm »

Looks like The Rock has bought the XFL.  For a grand total of $15 million. 
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EDGECRUSHER
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« Reply #12 on: August 03, 2020, 12:42:04 pm »

Looks like The Rock has bought the XFL.  For a grand total of $15 million. 

He bought it with some media company that has access to networks and other media. So, really looks like it will relaunch when things go back to normal.
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BuccaneerBrad
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« Reply #13 on: August 03, 2020, 10:13:26 pm »

He bought it with some media company that has access to networks and other media. So, really looks like it will relaunch when things go back to normal.

Plus he was a college and pro football player before he was a wrestling superstar/movie star.  This could very well be a successful league with him behind it.  The crazy thing is his business partner happens to be his ex-wife.
« Last Edit: August 06, 2020, 12:52:04 pm by BuccaneerBrad » Logged

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