Even though it has only been one week it appears the AAF is already in the red when it comes to their payroll. The Alliance of American Football, co-founded by Charlie Ebersol and Bill Polian, apparently missed payroll after Week 1, per Darren Rovell.
This comes after rumors reported by XFL2k.com yesterday stating that the AAF is not making any money from their TV deals with CBS, TNT, and NFL Network.
However, with their TV ratings being incredibly high and a quickly growing fan base, Tom Dundon, owner of the NHL’s Carolina Hurricanes, decided to invest $250 Million into the league.
While this news is alarming it is not all that surprising. In the 1980s the USFL had constant issues with cash flow. That comes with the territory of trying to build a new league. In 1960, Lamar Hunt lost over a $1 Million. Most of the “Foolish Club”, who were the original 8 owners of the AFL, regularly lost money to the point Oakland Raiders’ ownership had to ask for a $500,000 loan from Buffalo’s owner Ralph Wilson.
With $250 Million now invested in the league time will tell if it will have smooth sailing going forward or if the AAF will fail leaving the spring open for the XFL to learn from the Alliance’s mistakes
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