The AAF suspended all football operations prior to the completion of its first season in a stunning decision that indicated financial woes for the league had not been fixed in total by the investment of $250 million from Carolina Hurricanes owner Tom Dundon.
Dundon decided to shut down the league a month ago after not getting his wish of a promise of more investment from the NFL to make the AAF a true development league. In the weeks since, lawsuits have been filed against the league by former players and the ugly truth about the league’s financial problems have come to light.
On Wednesday, the league filed for Chapter 7 bankruptcy, officially ending the short run the league had and the filing indicates just how bad things had gotten for the AAF.
Bankruptcy documents obtained by Front Office Sports show the league claims just over $11 million in assets, $48 million in liabilities, and just north of $500,000 in cash — including a grand total of $44 in the Birmingham Iron’s bank account.
BREAKING: @TheAAF has filed for Chapter 7 Bankruptcy.
– In the filings, the league claims assets of $11.3 million and liabilities of $48.3 million.
– According to the documents, the league has $536,160.68 in cash. pic.twitter.com/IsOlGi2yoO
— Front Office Sports (@FOS) April 17, 2019
It’s clear from these documents that the AAF was bleeding money throughout its first season and, ultimately, decided to shut its doors rather than risk a continued loss of funds. However, it raises the question of why the league rushed to open its first season so quickly if, financially, they were never in position to make it through a season without a hefty influx of funds from a new chief investor and a hopeful investment from the NFL.
