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canes2017

Dundon Suspends operations in AAF

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Feel bad for all the small businesses and vendors, that did deals and gave goods and services in good faith, now screwed.

 

AAF declares Chapter 7 bankruptcy

 

A copy of the filing from Front Office Sports shows just how bad the damage is. In all, the AAF had accumulated more than $48 million in liabilities, including more than $38 million in unsecured claims. That is compared to $11.3 million in assets and just over $500,000 in cash on hand. 

 

The AAF is also fighting multiple lawsuits with the potential for more down the road. Two former players have already filed a class-action case against the league, including Dundon and CEO Charlie Ebersol, claiming the players were misled and defrauded. One former AAF coach told CBSSports.com that another could be on the way representing coaches, as well. 

 

https://www.cbssports.com/aaf/news/aaf-files-for-chapter-7-bankruptcy-showing-more-than-48-million-in-liabilities/

Edited by canes2017

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23 minutes ago, canes2017 said:

Feel bad for all the small businesses and vendors, that did deals and gave goods and services in good faith, now screwed.

 

AAF declares Chapter 7 bankruptcy

 

A copy of the filing from Front Office Sports shows just how bad the damage is. In all, the AAF had accumulated more than $48 million in liabilities, including more than $38 million in unsecured claims. That is compared to $11.3 million in assets and just over $500,000 in cash on hand. 

 

The AAF is also fighting multiple lawsuits with the potential for more down the road. Two former players have already filed a class-action case against the league, including Dundon and CEO Charlie Ebersol, claiming the players were misled and defrauded. One former AAF coach told CBSSports.com that another could be on the way representing coaches, as well. 

 

https://www.cbssports.com/aaf/news/aaf-files-for-chapter-7-bankruptcy-showing-more-than-48-million-in-liabilities/

IDK how to feel about this. I kinda feel like these were problems that were started well before Dundon became involved

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34 minutes ago, CFD1415 said:

IDK how to feel about this. I kinda feel like these were problems that were started well before Dundon became involved

 

No doubt- But if you aren't going to work through current problems problems and commit long-term- then do not buy. The AAF had other suitors, just feels like either didn't do his Due Diligence properly or just really never that committed to league

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5 hours ago, canes2017 said:

 

No doubt- But if you aren't going to work through current problems problems and commit long-term- then do not buy. The AAF had other suitors, just feels like either didn't do his Due Diligence properly or just really never that committed to league

I agree.

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Again- just hate a billionaire is screwing the little guy and not paying what all these small time vendors are owed. Show some class and pay for the service you expected. I always hate how Ebersol and the big guys got their last money- but not the players or vendors

 

The league left players stranded without a way to get home and even reportedly stuck some of them with hotel bills after abruptly folding.

Now, the AAF is trying to get its creditors to back off, saying the league has no money to pay back claims, per Sports Business Journal’s Daniel Kaplan:

 

The Alliance of american Football has no money for creditors and instructed the thousands of them to stop filing claims, the league disclosed in bankruptcy case filing today. Story in @sbjsbd AAF filed for Chapter 7 on April 17

 
 
 
 

 

Sports agent Darren Heitner isn’t impressed, though, responding to the tweet noting financial decisions the league has made recently:

tnrziwSm_normal.jpg

The Alliance of american Football has no money for creditors and instructed the thousands of them to stop filing claims, the league disclosed in bankruptcy case filing today. Story in @sbjsbd AAF filed for Chapter 7 on April 17

 

But it was able to pay Charlie Ebersol his final salary check days before filing for bankruptcy and is spending an exorbitant amount of $ on bankruptcy counsel. Just a shame.

27

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"

At the time of his arrival, Dundon’s public remarks assured fans—and, more importantly, AAF players and other AAF employees—that the league’s future was secure. “There’s a difference between commitments and funding,” Dundon told media in February. “They had the commitments to last a long time, but maybe not the money in the bank. My money is in my bank. I’m sure of it … That’s enough money to run this league for a long time. We’re good for many years to come with what I just did.”

 

https://www.si.com/nfl/2019/04/15/aaf-alliance-of-american-football-suspended-litigation-legal-fallout

 

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ESPN on AAF

 

This article paints a different picture. The article seemed to paint Ebersol as the dreamer who didnt plan accordingly and TD as the big bad business man. The first two paragraphs make it look like TD just swooped in and shut it down.  

 

The rest of the article says much different.  The league was very poorly run.  Ebersol started the league on hopes and dreams, his big investor had accounts frozen, then when TD came on they were trying to fund the league and pay off training camp debts.   TD came in and backed out immediately but, was talked back into it.  He asked for the league to cut expenses to save themselves but, they refused.  He funded them for 4 weeks at 15 million a week. When Ebersol couldnt get more investors, TD shut it down.  

 

That app that everyone said was the reason got in to the AAF, according to the article, is faulty and barely works.  That APP was another over promise by Ebersol.

 

After reading the article, I dont feel like TD was the bad guy here.  

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Sports Illustrated also had a long detailed article on the AAF a while back and turns out it's online as well.

 

https://www.si.com/nfl/2019/04/30/alliance-american-football-aaf-collapse-charlie-ebersol-tom-dundon

 

They implied that Dundon wasn't interested in the software and that a major factor in TD shutting the league down was that rather than getting paid for television rights, the league was actually paying to have the games televised. 

 

A couple excerpts:

 

  • Then Dundon took over. And he, says one engineer, “couldn’t give a s--- about the tech.” The same engineer recalls having a very brief conversation with his seemingly uninterested new boss . . . only to be fired when the league closed a few weeks later.  The tech team would later get a kick out of speculation that Dundon shut the league down in order to steal their work, perhaps even applying it to the Hurricanes. If that was the case, why the hell did he get rid of the only people who could make sense of it?  If anything, the new leader’s apparent lack of interest in the tech should have heralded a change in direction. This was no longer a tech startup on a three-year march to profitability. To Dundon, it appeared, the Alliance was a fledgling football company that needed to show him something concrete.

 

  • It may have been due diligence on the television front, however, that eventually helped inform Dundon’s decision to shut it all down before his investment reached nine figures. According to a high-level sports exec from one of the four major networks, Dundon called to ask about the Alliance’s TV future. What he learned: While it wouldn’t necessarily always be this way, the AAF would have to continue paying to be on the air for the foreseeable future. The Alliance would remain an underdog fighting for TV time in a crowded sports marketplace.
Edited by LakeLivin

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36 minutes ago, ja1964 said:

smart  business man     

 

Define "smart".

 

He puts up a large amount of dosh to bankroll a struggling developmental league, insists on being made head honcho of said league, and doesn't know 'til *after* the league plays for a few weeks that they're actually paying to be on TV as opposed to being paid to play.

 

Sounds like a guy who got into a business he knew little to nothing about and didn't bother to learn everything about it until he'd already dropped the dinero and got people paying attention to him.

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19 hours ago, JonKerfoot said:

 

Define "smart".

 

He puts up a large amount of dosh to bankroll a struggling developmental league, insists on being made head honcho of said league, and doesn't know 'til *after* the league plays for a few weeks that they're actually paying to be on TV as opposed to being paid to play.

 

Sounds like a guy who got into a business he knew little to nothing about and didn't bother to learn everything about it until he'd already dropped the dinero and got people paying attention to him.

 

Yup- nothing "smart" about losing $60 million+ and closing the league. 

As been saying he or his lawyers never did proper Due Diligence and he guess "liked" the idea of owning a whole league more than asking the simple smart questions he found out about later.. Amazing didn't ask about the tv deal before buying.. or knowing the tch before buying.. that is far from smart.

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Guess Dundon now falling back on the old kid game and asking for "backsies" :)

 

https://sports.yahoo.com/tom-dundon-wants-70-million-170515645.html

 

 

Carolina Hurricanes owner Tom Dundon is having a case of buyer’s remorse. But it could be too late for Dundon to get a refund.

Daniel Kaplan of TheAthletic.com reports that Dundon has filed a claim in the Alliance of American Football’s bankruptcy case. Dundon alleges that his investment happened due to “misrepresentations,” and he seeks a full refund of the $70 million he paid to keep the league afloat for five or six weeks during its only season, before Dundon shuttered it.

“Even though AAF executives told [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 [Dundon Capital Partners’] investment of up to $70,000,000 to get through the first season,” the document alleges. “The AAF and its executives never disclosed this information to [Dundon Capital Partners].”

In other words, Dundon claims that the AAF led Dundon to believe that an infusion of $70 million would get the league through its first season, but that the AAF knew that in reality $120 million would be required. More specifically, Dundon claims that the AAF led him to believe that an amount considerably less than $70 million would be needed to finish the campaign.

 

cont in link

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3 hours ago, canes2017 said:

 

Carolina Hurricanes owner Tom Dundon is having a case of buyer’s remorse. But it could be too late for Dundon to get a refund.

Daniel Kaplan of TheAthletic.com reports that Dundon has filed a claim in the Alliance of American Football’s bankruptcy case. Dundon alleges that his investment happened due to “misrepresentations,” and he seeks a full refund of the $70 million he paid to keep the league afloat for five or six weeks during its only season, before Dundon shuttered it.

 

And of course he wants it back before those former players and coaches get anything. He's wealthy and important, and the players and coaches who *were* the game are nothing and deserve nothing....

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On 6/25/2019 at 7:56 PM, JonKerfoot said:

 

And of course he wants it back before those former players and coaches get anything. He's wealthy and important, and the players and coaches who *were* the game are nothing and deserve nothing....

No doubt!...

 

Find a nice kind of cosmic Karma in the man that made literally Billions off sub-prime car loans where People who didn't read the fine print or realize the 24% interest rate, now claiming he didn't read the fine print or realize the terms... ohhh the Irony..

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