The AAF was fun while it lasted, but it did not last long.
Carolina Hurricanes owner Tom Dundon alleges that the league initially told him it only needed $55 million to get through one season when he invested but in reality needed $120 million–more than twice what he was told–in a revealing legal filing in bankruptcy court.
Dundon filed as an unsecured creditor of the bankrupt league, who’s short existence culminated in an incomplete inaugural season. He charged that he was induced into buying the league through “misrepresentations” and is seeking the $70 million he invested in the league based on the inaccurate representations, per SI.com.
“The AAF further represented that it could survive the season with only $55,000,000, leaving substantial capital to prepare for the following season,” Dundon’s filing charges state. “During the weeks following the execution of the Term Sheet, DCP learned a number of alarming facts that revealed that the AAF was not forthcoming with Dundon and DCP. DCP learned that, in addition to not having the funds to pay salaries after the first week of the League’s games, the AAF also had accumulated more than $13,000,000 in unpaid debts and commitments. The AAF did not disclose these unpaid debts or commitments to DCP prior to the execution of the February 14, 2019 Term Sheet.”
This is not going to be pretty. The league was fun while it lasted. It did help 55 players make it to the NFL. So it was worth it for some.