XFL's creditors are fighting Dwayne Johnson's purchase of the failed football league

Sportico

Johnson, his business partner Dany Ramirez and RedBird Capital's purchase of the XFL is running into problems with the league's creditors, who feel the sale was rushed. "Another source of criticism is uncertainty about what exactly is being sold," reports Sportico's Michael McCann. "The unsecured creditors suspect that Alpha failed its duty under bankruptcy law to negotiate sale terms “that are most favorably to the estate and do not unduly prejudice its creditors. At issue is a proposed asset purchase agreement (APA), a sales document that specifies and values company assets. The unsecured creditors insist that the APA 'seeks to strip the estate of valuable assets for no consideration.' Stated more bluntly, they worry that Johnson and (RedBird Capital CEO Gerry) Cardinale’s group would obtain valuable assets effectively at no cost. If true, money that could go to creditors would instead remain with Johnson and Cardinale."