The Alliance of American Football has filed for bankruptcy.
BREAKING: @TheAAF has filed for Chapter 7 Bankruptcy.
– In the filings, the league claims assets of $11.3 million and liabilities of $48.3 million.
– According to the documents, the league has $536,160.68 in cash. pic.twitter.com/IsOlGi2yoO
— Front Office Sports (@frntofficesport) April 17, 2019
Chairman Tom Dundon decided to suspended AAF operations in early April. He poured $250 million into the league after just the first week of the season which gave him unilateral decision-making power.
Dundon invested $70 million through eight weeks and the AAF would have required another $20 million to get through the rest of its schedule, two more regular season weeks, a four-team playoff and championship game.
Any player who suited up and remains under contract to an AAF team cannot sign in the Canadian Football League, yet, according to 3DownNation’s Justin Dunk. There were a handful of players with CFL ties who chose to ink deals in the AAF instead of continuing their careers north of the border.
The AAF is still dealing with lawyers and ongoing legal processes which means any athletes who were under contract when the league suspended operations cannot put pen to paper with a CFL franchise until the legal dealings are finished.
“The Canadian Football League continues to have dialogue with the AAF,” the league said in a statement. “Until the player contracts are voided, CFL clubs will not be allowed to sign players who have a current contract with the AAF.”
Only players who are free agents can attend free agent or mini-camps with CFL squads. For example, receiver and defensive back Terrell Sinkfield could ink a CFL deal because the Orlando Apollos released him. Conversely, cover man Ciante Evans was signed with the Salt Lake Stallions when the AAF folded and won’t be eligible until the legal issues are decided.
More than 40 former AAF players have been snapped up by NFL franchises. That’s allowed because it was in the original agreement when the AAF was getting started. The AAF consisted of eight teams and featured a collection of former NFL, CFL and college players.