The Rise and Fall of the Alliance of American Football: A Financial Rollercoaster

The rise and fall of the Alliance of American Football (AAF) in 2019 was a rollercoaster of excitement and disappointment. The league burst onto the scene with impressive viewership numbers and high-quality football, but behind the scenes, financial troubles were brewing.

Lead investor Reggie Fowler’s funding had dried up, leaving the league struggling to pay its players. In stepped Tom Dundon, who quickly injected $5.1 million in emergency funding to keep the league afloat. By February 19, Dundon had committed to investing $250 million in the AAF and became chairman of the board.

However, the honeymoon period was short-lived. Just two months later, the league folded, filing for bankruptcy and leaving players and staff in the lurch. The details of what transpired between Dundon’s initial investment and the league’s demise are now the subject of a legal battle.

Dundon claims that he was misled by AAF co-founder Charlie Ebersol about the league’s financial state, prompting him to make a $70 million commitment that he now regrets. Ebersol, on the other hand, alleges that Dundon reneged on his promise to support the league long-term, instead choosing to cut costs and shut it down midseason.

Prior to its collapse, the AAF had aspirations of becoming a feeder league for the NFL, with discussions held between league officials and the NFLPA. However, these talks ultimately fell through, adding to Dundon’s frustration and leading to the league’s untimely demise.

The rise and fall of the AAF serves as a cautionary tale for sports leagues looking to make a splash in a competitive market. Despite initial success on the field, financial stability and long-term planning are crucial for any sports organization to survive and thrive.