Posted on 03/07/2008 7:00:35 PM PST by scrabblehack
The All American Football League could be closing down before its first kickoff.
The AAFL released a statement early Thursday stating the six-team spring venture could be shut down until 2009 unless a new majority owner could be found — and quickly. The tone was more optimistic in a statement released late Thursday.
“The All American Football League continues to progress toward its 2008 inaugural season. The league’s CEO, Marcus Katz, stated that discussions continue with several prospective investors and that negotiations for broadcast coverage of AAFL games continue to move forward. The start of preseason training camps will be delayed briefly during this process, with the intent that the league’s games will kick off on April 12, 2008.”
Knoxville-based Team Tennessee is scheduled to play Michigan on April 12 at Neyland Stadium.
Team Tennessee president Larry Seivers is still holding out hope.
“I hope this is all just something we can laugh about as we’re kicking off April 12,” he said. “But right now, you guys know as much as I do.”
Former University of Tennessee athletic director Doug Dickey, an AAFL board of directors member, said things are in a holding pattern.
Seivers, hired by Dickey to run Team Tennessee, said he has been hearing rumors of a possible shut down all week.
“We at Tennessee are completely ready to go,” he said. “As a matter of fact, I just left my equipment guys who were going through boxes and boxes of shoulder pads, helmets, shirts, uniforms.
“Operationally, we’re ready to go. We’re just in wait-and-see mode.”
The AAFL also has teams located in Florida (Gainesville), Alabama (Birmingham), Arkansas (Fayetteville), Michigan (Detroit), Texas (Houston).
For Team Tennessee and former UT kicker James Wilhoit, the situation appears bleak.
“It’s definitely tough and it doesn’t sound promising, but we’ll just have to wait and see what happens the next couple of days,” he said. “The biggest worry you have is you’ve got 60 guys who are ready to go to training camp and a lot of guys who have quit jobs and made plans for this league.
“For them to be questioning the league now, it’s obviously frustrating.”
Players were scheduled to make $50,000 for a 10-game season.
The Gainesville Sun reported Thursday that Katz has already committed $30-35 million to the league, but hasn’t guaranteed further financial support beyond March 31.
The league office Thursday press release headline stated the AAFL was “looking for a new majority owner to salvage ’08 season.”
“Since inception, the League’s finances have been indirectly tied to the $300 billion federally guaranteed student loan asset backed securities market,” the release said. “In August, the subprime mortgage crisis began spreading into other sectors such as municipal bonds and federally guaranteed student loans. The situation, which was considered to be temporary at the time, has continued to worsen.
First of all, I have trouble believing that federally guaranteed student loans make money at all. Especially with the relaxed terms — forgiving debt from government employees (although lost revenue there has yet to materialize), forgiving debt not repaid after 25 years, paying the interest on loans while students are in school, etc....
But then financing a high-risk venture like this??
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