Monday, July 20, 2009

AFL may declare bankruptcy

John Lombardo of SportsBusiness Journal reports that the Arena Football League could be filing for bankruptcy protection.

The league already canceled the 2009 season and hopes of restarting in 2010 get dimmer by the day.

Lombardo says that the league has $14 million in debt, and that it would need $10 million to $12 million in new capital in order to return in 2010. The AFL hopes to garner $10 million from a group of investors, including Steelers Hall of Famer Lynn Swann, for an expansion franchise in Pittsburgh.

The other alternative is for existing owners to pony up more money..

"There is a commitment to a plan to play (in 2010) and some owners don't want to put up the cash," an unnamed source told SBJ.

The Philadelphia Soul were the AFL's last champions before ceasing operations.

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