The Alliance of American Football, which suspended operations earlier this month in the midst of its first season, filed a petition for bankruptcy Wednesday in a Texas court.
Based on the filing of assets and liabilities, the league – under the limited liability corporation Legendary Field Exhibitions, LLC — had $11,372,298.68 in assets and $48,366,188.90 in liabilities.
Those liabilities include $9,642,171 in money owed to creditors.
The league, despite millions of dollars invested in it, also has $536,160.68 in the bank and only $78,582 in licenses, franchises and royalties. The money was held in three accounts — $500,000 in a collateral MMA account, $36,116.72 in a LFC operating account and $43.96 in an account with the Birmingham Iron name on it.
Among the debt is $7 million to MGM Resorts International for “security interest in intellectual property.”
The league and a lot of the LLCs created with it — including AAF Players, AAF Properties and Ebersol Sports Media Group — are filing Chapter 7 bankruptcy petitions.
The league filed for Chapter 7 bankruptcy — the most common form of bankruptcy. It means the league will gather and sell its assets to pay creditors according the United States Bankruptcy Code. Property, while not clear if the AAF owned any, can be exempt but all other assets can be liquidated.
That includes equipment purchased by the league that was returned to a San Antonio warehouse earlier this month, according to a league source.
The AAF had financial struggles throughout its existence, eventually necessitating a pledge of $250 million in funding from Carolina Hurricanes owner Tom Dundon — the league got much less — before the second week of games to keep the league afloat.
Dundon decided to shutter the league two months later, which has spurred three class-action lawsuits filed since the league suspended operations April 2.