The Alliance of American football officially is no more.
The defunct football league announced Wednesday that it has begun the process of seeking bankruptcy protection after it ceased operations in early April.
AAF statement on league filing for bankruptcy. pic.twitter.com/wXTh2eZmEL
— Darren Rovell (@darrenrovell) April 17, 2019
“The Alliance of American Football (AAF) has ceased all business operations and has started the process of liquidation pursuant to Chapter 7 of the Bankruptcy Code,” the league said in a statement. “AAF’s bankruptcy petition was filed on April 17, 2019, with the Bankruptcy Court for the Western District of Texas (San Antonio Division).
“We are deeply disappointed to be taking this action,” the statement continued. “The AAF was created to be a dynamic, developmental professional football league powered by an unprecedented alliance between fans, players and the game.”
The AAF ceased operations in early April, with just two weeks to play in its inaugural regular season. That decision caught players, coaches, vendors and venues by surprise, with many of them not paid by the league.
The AAF said in its statement that a trustee would be assigned to the team’s remaining assets and liabilities, including the issue of players’ contracts.
Many players said they were booted out of their lodging for games and stuck with the bill. Vendors said they were unpaid, and leases for stadiums and other venues were not honored.
It was just recently that players were allowed to be signed by NFL and CFL teams, meaning the AAF likely was trying to hold on to any assets it could.
According to records obtained by Front Office Sports, the AAF claimed assets of $11.3 million and liabilities of $48.3 million, but has only $536,160.68 in cash.
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 (@frntofficesport) April 17, 2019