April 17 (UPI) -- The Alliance of American Football (AAF) suspended its operations midway through the first season, and the league will now take the next step in bankruptcy court.
Based on the filings to a San Antonio court, the league has about $48.4 million in liabilities, including about $9.6 million owed to creditors, but only has about $11.4 million in assets. Among the debt is $7 million owed to MGM Resorts International "for security interest in intellectual property," according to ESPN.
The AAF has filed for Chapter 7 bankruptcy protection, according to the San Antonio Business Journal, giving it a chance to sell assets to pay creditors.
"We are deeply disappointed to be taking this action," the league said in a statement. "The AAF was created to be a dynamic, developmental professional football league powered by an unprecedented alliance between players, fans and the game. The AAF strove to create new opportunities for talented players, coaches, executives and officials while providing an exciting experience for fans. We are proud of the fact that our teams and players delivered on that goal."
The AAF was attempting to become a secondary developmental league to the NFL and featured notable players such as Johnny Manziel and Trent Richardson. The league ran into financial trouble and turned to Carolina Hurricanes majority owner Tom Dundon, who made a $250 million investment to save the league in February.
Less than a month later, the league suspended its operations. AAF co-founder Bill Polian said it was Dundon's decision to halt the league after the NFLPA and AAF couldn't come to an agreement on letting NFL practice squad players compete in the AAF.