Alliance of American Football filed for bankruptcy protection Wednesday. In the aftermath of the start of the league's settlement, co-founder Charlie Ebersol has broken his silence.
"I know everyone has conspiracy theories," Ebersol told John Ourand of SportsBusiness Journal. "Unfortunately, this may just be dead because the main investor and the founders had different visions of what the company should be … Our long-term vision of building something slow and gaining business value was not consistent with the vision of how he looked the league. "
It is not clear what Ebersol means by" conspiracy theories "; The predominant point of view is that AAF behaved as if it had enough money to fund several seasons, as it really did not. It had pledges first from the primary investor Reggie Fowler and then from Tom Dundon. But AAF at no point had money in the bank to pay the bills for another full season, much less two or more.
"We traveled over $ 170 million in the second quarter last year," Ebersol said. "We have ultimately raised well over $ 200 million before the launch of the football league. When it became clear that our primary investor [presumably Fowler] could not or did not comply with the signed contracts that had been overseen by several banks … we went to the market after the success of the first weekend and offered to let other people buy in. In the end, Tom made an offer to buy in. "In other words, AAF never had the money in the bank for To pay the bills for another full season, much less two or more.
Even after Dundon had committed $ 250 million to the operations, the reports quickly showed that he could pull the plug at any time. He did it eventually, and it was from here that Dundon and co-founders Charlie Ebersol and Bill Polian emerged. Ebersol and Polian wanted Dundon to hold the course, but Dundon decided to stop throwing good money after bad.
Now there is not enough money to pay the bills. And there it was never. With over $ 48 million in liabilities and less than $ 12 million in assets, most creditors will get stuck – unless they can create legal arguments that will allow them to pursue anyone and everyone who created the impression that money was in the bank as it really wasn't.