mr.nascar13

Death of the Alliance of American Football

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37 minutes ago, MJWalker45 said:

https://www.foxbusiness.com/features/aaf-tom-dundon-70m-refund-bankruptcy

Dundon wants his money back and I don't see how he'll get it if the assets are still less than the losses. 

“Even though AAF executives told DCP (Dundon Capital Partners) its contribution would get the AAF through the first season, those executives knew at the time of the execution of the Term Sheet that the AAF would likely need an additional $50,000,000 (including League revenue) on top of DCP’s investment of up to $70,000,000 to get through the first season,” the filing said, as first reported by The AthleticOpens a New Window.. “The AAF and its executives never disclosed this information to DCP.”

 

Dundon’s filing further alleges that AAF executives claimed that the league could complete its first season using just $55 million of his initial investment, with the rest in reserve for future seasons. However, Dundon said that a review of the league’s finances revealed it had more than $13 million in debt that it did not reveal prior to his investment."

 

I'm starting to believe as fact that Charlie cooked the books when he talked to Dundon. Or was Ebersol still naively thinking his original investor, who's since flown the coop somewhere, was still going to support them like he said he would. 

He did.  The ESPN long-form indicated that during that 24+ hour period, Ebersol sent Dundon the prospectus on the league which had the wrong (aka old) financial information.

Quote

Dundon told Ebersol that he was in for $250 million -- the amount both men believed it would take to get the league to profitability. But over the next hour, Dundon started digging into the business and was livid at what he found: The financial prospectus the AAF provided him was outdated and inaccurate.

"I'm out," Dundon told Ebersol.

Then Ebersol talked Dundon back in, explaining that the prospectus hadn't been updated and selling his vision for the AAF as a transformative league with transformative tech. Dundon called a few media and sports executives for advice. As always, the promise and potential of a spring football league captured their imagination. The heavy lifting of getting the league off the ground was already complete. Dundon concluded that if he could partner with the NFL or secure a remunerative broadcast deal, he might be able to flip the AAF, maybe for up to a billion dollars. Dundon had hours to decide. He decided to keep the AAF open on a weekly basis -- even if he would publicly play up the $250 million to the media, vowing that it was good for the long haul. He figured that was best for business. "I'm buying the option on it," he told a confidant. The four-page deal came together in 26 hours.

Also, what The Athletic story details is that Ebersol's AAF corporation really couldn't sign off on any deal with Dundon, the same with Ebersol's Legendary Field Exhibitions corporation.  It was ESMG (Ebersol Sports Media Group) Board of Directors which had approve the transaction.  Also, The Athletic reports that by doing this, Dundon is attempting to remove himself from litigation from creditors AND to possibly have the AAF executive and AAF Board insurance policies trigger a new pool of monies. 

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Posted (edited)

Good Seats Still Available produced a second post bankruptcy AAF podcast.  This episode is with ESPN's Michael Rothstein, who co-wrote the piece with Seth Wickersham.  In the hour long conversation Rothstein mentioned how he was assigned the AAF, his weekly reports, and his ESPN Radio weekly hit, as well as other observations he made from training camp in San Antonio until the day the league folded.  Interview starts around the 12:00 mark.

 

Oh, and Charlie Ebersol gave the court a response to one of the class action suits against him and the AAF.

Quote

Charlie Ebersol, the cofounder of the now-defunct Alliance of American Football, responded to a lawsuit filed by the league's former players by alleging that it was the AAF players who committed "intentional misrepresentations" and fraud, legal documents show.

 

The players, in their class-action suit filed in April, alleged that Ebersol and co-defendants Tom Dundon and Legendary Field Exhibitions, LLC, among others, were the ones who committed fraud and didn't live up to their contracts.

 

Ebersol's response document does not say what type of fraud or misrepresentation he is alleging that the players committed. The document does allege that the plaintiffs had "material breaches of obligations" and "directly interfered with Defendant's performance of its obligations" but does not state what those breaches or interference are.

 

The response also says Ebersol "denies, both generally and specifically, each and every allegation contained in the Plaintiff's Complaint" and believes the plaintiffs are not entitled to any damages and Ebersol "acted reasonably, in good faith and without malice based upon all relevant facts and circumstances known by Defendant at the time." Ebersol also alleges that the Plaintiffs should not receive any damages due to the "negligent" and "intentional intervening acts of a third party," shielding Ebersol from liability. The document does not say who the third party is.

 

Ebersol is also alleging that the players should be "barred from claiming any injuries or damages because such injuries and damages are the sole, direct and proximate result of Plaintiffs' conduct." The document does not state what that conduct is.

20% of the players are involved in the class action suit.

 

Edited by dfwabel
link added

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What a scumbag.  Hope they can take him for everything they’re owed and more. Sufficiently harsh punitive damages might make the next grifter think twice. 

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Did anyone here use the app? What was so "transformative" about it? And amazing how it wasn't even available when the league started. Real good sign of long-term viability right there.

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41 minutes ago, Quillz said:

Did anyone here use the app? What was so "transformative" about it? And amazing how it wasn't even available when the league started. Real good sign of long-term viability right there.

Not a damn thing. 

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Just now, MJWalker45 said:

Not a damn thing. 

Figured. Even more embarrassing it wasn't available when the league started up then.

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4 minutes ago, Quillz said:

Figured. Even more embarrassing it wasn't available when the league started up then.

Go to Reddit and the comments there tell you it didn't worked as advertise.

 

SportsTechieSportsTechie detailed its development.

 

 

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On 7/2/2019 at 6:42 PM, Quillz said:

Did anyone here use the app? What was so "transformative" about it? And amazing how it wasn't even available when the league started. Real good sign of long-term viability right there.

 

23 hours ago, MJWalker45 said:

Not a damn thing. 

Same here. I still have the app for some reason. I really wanted to love this league and i feel betrayed, like so many others.

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1 minute ago, Matthew24 said:

 

Same here. I still have the app for some reason. I really wanted to love this league and i feel betrayed, like so many others.

Btw, i know the app was free but as fans we should get money back for installing the app that was a giant lie like this league and Ebersol. What a pathetic joke.

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On 7/2/2019 at 6:42 PM, Quillz said:

Did anyone here use the app? What was so "transformative" about it? And amazing how it wasn't even available when the league started. Real good sign of long-term viability right there.

 

I did. The app synched to the league website rather than the television broadcast on the field so it would often be a few plays ahead of what was on TV. Wouldn't be an issue if it weren't for the one bit of interactivity regarding the app was to predict the next play. So, you'd predict the next play, only to see that what you're about to predict won't be broadcast for another minute. 

 

If gambling was integrated into the app as advertised (IIRC legal issues torpedoed that), it might've gotten more usage. Then again, I don't know how most gamblers are, but don't they usually bet money on sports/leagues they know about? 

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1 hour ago, Red Comet said:

 

I did. The app synched to the league website rather than the television broadcast on the field so it would often be a few plays ahead of what was on TV. Wouldn't be an issue if it weren't for the one bit of interactivity regarding the app was to predict the next play. So, you'd predict the next play, only to see that what you're about to predict won't be broadcast for another minute. 

 

If gambling was integrated into the app as advertised (IIRC legal issues torpedoed that), it might've gotten more usage. Then again, I don't know how most gamblers are, but don't they usually bet money on sports/leagues they know about? 

It only really worked as a prediction tool when you were actually at the game. Otherwise it was underwhelming.

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23 minutes ago, dfwabel said:

Clients represented by former attorney Jerry Kurz, a former Arena Football League Commissioner, were the high bidders at a bankruptcy court sale Wednesday for football equipment that had belonged to the Alliance of American Football.

https://www.expressnews.com/business/local/article/Bankrupt-football-league-s-gear-sold-at-San-14070510.php

 

Is he planning on opening a failed league museum or something? I have a few WLAF jerseys I could sell him! In reality, no I would not. 

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I expect they think they can turn around and sell it to the XFL.  The XFL would still pay less than retail, and the players would get a little something after being screwed by the league. 

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34 minutes ago, Gothamite said:

I expect they think they can turn around and sell it to the XFL.  The XFL would still pay less than retail, and the players would get a little something after being screwed by the league. 

If the XFL wanted it, wouldn't they have bid on it? Why would you think they would pay for it now when they didn't bid on it (or didn't feel the desire to pay what Kurz paid)?

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Don’t know.  Maybe they did but lowballed. Maybe they only want part of it, and didn’t want the whole lot.

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Posted (edited)
4 hours ago, Sec19Row53 said:

If the XFL wanted it, wouldn't they have bid on it? Why would you think they would pay for it now when they didn't bid on it (or didn't feel the desire to pay what Kurz paid)?

 

3 hours ago, Gothamite said:

Don’t know.  Maybe they did but lowballed. Maybe they only want part of it, and didn’t want the whole lot.

Note, the MLFB bid was pulled, basically because they could pay for it had they won. Frank Murtha is still talking like they'll play, telling the Express-News that they still have leases in Norfolk and Little Rock.  OK.

 

Kurz placed the bid on behalf of Miami-based merchandise broker, NCM Wireless Inc.

Kurz was cryptic, but it sounds like there is another league he was working for, likely indoor.

 

Kurz has until close of business on Monday to pay for the goods. If they don't, the XFL's auction bid of $445,000* will be accepted. 

*- Minus the $37,500 they placed as a deposit weeks ago. 

 

There's another small Express-News story on the auction.  Because their site has a paywall, here is a link to the Cached page.

Edited by dfwabel

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The folks over at Arenafan said that Kurz was working in the Indoor Football League after he left the AFL, but that he may have already left the IFL.

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3 minutes ago, GDAWG said:

The folks over at Arenafan said that Kurz was working in the Indoor Football League after he left the AFL, but that he may have already left the IFL.

He has a consulting firm named Gridiron Sports Consulting. He is also working with LFL (Lingerie/Legends)

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