Which pro sports leagues have filed for bankruptcy?

The American Basketball League, the Alliance of American Football, and Grand Slam Track have all faced bankruptcy proceedings.

Why did the Alliance of American Football go bankrupt?

The AAF filed for Chapter 7 bankruptcy due to significant financial distress, failing to complete its first season with $48 million in liabilities.

What is Grand Slam Track's bankruptcy plan?

Grand Slam Track filed for Chapter 11 bankruptcy to reorganize its business and secure financing, aiming to continue operations.

Home / Sports / Sports Leagues Fold: Bankruptcy Woes Strike Pro Teams

Sports Leagues Fold: Bankruptcy Woes Strike Pro Teams

12 Dec

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Summary

Professional sports leagues have rarely filed for bankruptcy.
The Alliance of American Football failed after one season.
Grand Slam Track filed for bankruptcy to reorganize operations.

Sports Leagues Fold: Bankruptcy Woes Strike Pro Teams

While rare, professional sports leagues have faced bankruptcy and closure. The American Basketball League, established in 1995, suspended operations in December 1998 after filing for Chapter 11 bankruptcy. This serves as a historical precedent for league financial distress.

More recently, the Alliance of American Football failed to complete its inaugural season, filing for Chapter 7 liquidation in April 2019. The league reported substantial liabilities of $48 million against assets of $11 million and minimal cash reserves.

In a different approach, Grand Slam Track, founded by Michael Johnson, has sought Chapter 11 bankruptcy protection. The league aims to reorganize its finances and operating model for long-term success, unlike the AAF's complete liquidation.

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