XFL Creditors File Motion Opposing The Rock's Takeover
Dwayne Johnson's attempted XFL purchase hits a snag.
Yesterday brought one of the year's weirdest wrestling-adjacent news stories yet, as it was revealed that Dwayne 'The Rock' Johnson and his investment partners (Gerry Cardinale of RedBird Capital and Dany Garcia) had purchased Vince McMahon's failed XFL football league for just $15 million.
A motion objecting to this takeover has now been filed by those still owed money by the group (per PWInsider). Vince McMahon had flung the XFL into bankruptcy earlier this year, leaving the league with several unsecured creditors, who claim the XFL's assets will now be sold below market value, leaving them out of pocket.
While said creditors are largely in favour of The Rock and his group taking the XFL over from McMahon, they wish for the terms of the sale to be reconfigured in order to ensure that those still owed money by the league aren't shortchanged.
The 13-page motion states the following:-
“[Alpha Entertainment] has an ongoing obligation to negotiate terms with the Proposed Buyer that are most favorable to the estate and do not unduly prejudice its creditors. The proposed APA, however, does not reflect such terms and seeks to strip the estate of valuable assets for no consideration. As such, the Committee has significant concerns that the Sale contemplated with the Proposed Buyer does not satisfy the sound business purpose test, and is not in the best interests of the Debtor’s estate.”
The court is yet to respond to the objection.