Start ups leagues are fun until the messy, inevitable end.
That’s what has happened with the XFL. After filing for bankruptcy, former commissioner Oliver Luck has filed a law suit against league owner Vince McMahon.
Luck’s lawyers stated despite fulfilling his obligations as commissioner and CEO since May 30, 2018, Mr. Luck was wrongfully terminated by Alpha Entertainment, an affiliate of the defendant.
According to The Action Network’s Darren Rovell, Luck was due a hefty salary.
Sources say Luck received a contract for in between $20-25 million over five years. The contract stipulated he’d be due the remaining balance if terminated without cause.
“The to-be-expected motion to dismiss from McMahon and the response will be interesting from a legal perspective,” said Darren Heitner, sports lawyer and founder of Heitner Legal.
“Luck’s contract was not with McMahon personally. Will the court be convinced that McMahon’s pledge to provide his own money adds personal liability? Seems to be a stretch.”
Sources say the bankruptcy court approved the rejecting of those contracts, which meant that Luck’s only recourse was to sue McMahon.
The XFL kicked off in February and played five weeks of a planned 10-week schedule. The league suspended operations due to the coronavirus and laid off all its employees in April, including Luck.
Since the XFL went under, former CFL players such as Armanti Edwards, Jalen Saunders and Sergio Castillo have made their way back north of the border. The XFL’s loss has been the CFL’s gain, but McMahon has bigger financial issues on his hands.