Tom Dundon, the former chairman of the Alliance of American Football, this week has asked the bankruptcy court to rebuild its $ 70 million investment in the non-existent spring league.
Dundon, who filed for an unsecured creditor, claims the AAF managers have misled him for the financial situation of the league to lure him to make a significant investment. The billionaire, who also owns Carolina Hurricanes of NHL, promised $ 250 million to fund the league and became its majority shareholder in February, just weeks before it collapsed.
Dundon Capital Partners), his contribution would get AAF in the first season, these executives knew during the execution of the deadline sheet that AAF would probably need an additional $ 50,000,000 (including league earnings ) in addition to DCP's investment up to $ 70,000,000 for the first season, "said the archive, as reported by The Athletic for the first time. "AAF and its executives have never disclosed this information to DCP."
Dundon's submission claims the AAF leaders say the league can finish its first season, using only $ 55 million of its original investment, and the rest is in reserve for future seasons. , However, Dundon said the league's finance review revealed that there are more than $ 1
Co-founder Charlie Ebersol and former CEO of NFL Bill Polian last February, promoting a rational product on the ground, an innovative digital app for viewers and financial contributions from several high-profile investors. While the early TV ratings and reviews were strong, the league soon faced funding problems. , chose to withdraw funding in April after AAF failed to reach a partnership with the NFL. The League attracted widespread criticism for dealing with the break that left many players and sellers with unpaid bills.
Aaf applied for bankruptcy protection in April, revealing $ 11 million of assets against $ 48 million in liabilities.