To no surprise at all, the defunct Alliance of American Football has filed for bankruptcy.
Via Front Office Sports, the Chapter 7 filing — which happens when a business is completing liquidated its assets and going out of business — lists more than $11 million in assets, and more than $48 million in liabilities. The league also has $536,160.68 in cash.
The assets undoubtedly include football equipment that could be auctioned, including official helmets and jerseys. Based on the league’s refusal to release players from their contracts for possible employment by the CFL, the AAF likely has attached a value to those contracts, treating them as among the total assets.
Through bankruptcy, the assets will be sold and the various creditors will receive a portion (sometimes very small) of the money owed to them. The broader question is whether the creditors will be able to pierce through the veil of individual protection generated by a formal business structure and attack the personal assets of those who organized the league.