The AAF had a very quick, yet memorable, rise and fall. It came very close to being a legit football league, but in the end had an epic crash and burn.
That crash and burn is still playing out in court with several lawsuits being filed shortly after the league shut its doors. Former AAF owner Tom Dundon is the latest to get into the lawsuit action.
The Carolina Hurricanes owner filed a lawsuit seeking the return of his $70 million investment. He claims he was mislead into buying the league.
Via The Athletic:
“Even though AAF executives told DCP (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 DCP’s investment of up to $70,000,000 to get through the first season,” according to the legal filing made Monday. “The AAF and its executives never disclosed this information to DCP.”
“The AAF further represented that it could survive the season with only $55,000,000, leaving substantial capital to prepare for the following season,” Dundon’s filing charges read. “During the weeks following the execution of the Term Sheet, DCP learned a number of alarming facts that revealed that the AAF was not forthcoming with Dundon and DCP. DCP learned that, in addition to not having the funds to pay salaries after the first week of the League’s games, the AAF also had accumulated more than $13,000,000 in unpaid debts and commitments. The AAF did not disclose these unpaid debts or commitments to DCP prior to the execution of the February 14, 2019 Term Sheet.”
What a run. We’ll never forget you AAF, at least not until the XFL kicks off in 2020.
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