AF1 Purchasing the Remnants of the AFL

[NatePreds05]

Here's the press release:

TULSA – The League Office of Arena Football One announced today that it has submitted a formal offer to purchase the assets of the Arena Football League (AFL) from the Trustee in the Chapter 11 bankruptcy currently pending in the US Bankruptcy Court in the Northern District of Illinois.

The league is seeking Court approval to become the "stalking horse" bidder for the assets. If approved, the league's bid of $2.5 million for all of the AFL's assets will set the floor price for the auction bidding process, which is current set for Wednesday, November 25, 2009.

"The assets have little or no inherent value unless you are willing to invest the capital necessary to develop and use those assets in an on-going business" said Dan Newman, Chairman of the Board of Directors for Arena Football One, LLC.

AF1 is committed to bringing the excitement of Arena Football to the fans after more than a year absence from AFL markets. The last AFL game played was ArenaBowl XXII in July 2008. In December 2008, the AFL cancelled the 2009 season and then announced an indefinite suspension of operations in August 2009.

"We felt it was essential to play a 2010 Season and we are committed to making that a reality under the Arena Football One banner,” said Commissioner Jerry Kurz. “The game of Arena Football will be played in markets across the country and our teams will continue offering fans an immensely-entertaining experience.”

-About AF1-

Formed in 2009, the Arena Football One League boasts teams from coast to coast and will commence its Inaugural Season in the Spring of 2010.

[Minor League Man]

I, for one, support that decision. Let the AFL rest in peace!

That way, the teams that were still trying to wait for a snowball's chance AFL comeback (Grand Rapids, Kansas City) will jump over to the new league and let their fans enjoy the game again!

[preeths]

Those teams may plan on making a bid of their own for the AFL assets. From my understanding, the patent has expired meaning both leagues (1. GR, KC and the other AFL leftovers; 2. AF1) could theoretically play Arena Football, but wouldn't only the winning bidder be able to call it Arena Football? I'm assuming that the trademarked name is part of the assets for sale.

[NatePreds05]

Those teams may plan on making a bid of their own for the AFL assets. From my understanding, the patent has expired meaning both leagues (1. GR, KC and the other AFL leftovers; 2. AF1) could theoretically play Arena Football, but wouldn't only the winning bidder be able to call it Arena Football? I'm assuming that the trademarked name is part of the assets for sale.

Yes the intellectual property of the AFL is part of the assets for sale, so only the winner could call it Arena Football, while there could be multiple leagues playing football with arena rules and nets.

[Caballo Diablo]

New arena league bids $6.1M for AFL assets
By JOHN LOMBARDO
Sports Business Journal Staff writer
December 07, 2009

The assets of the bankrupt Arena Football League fetched $6.1 million in a recent auction between two competing bidders.

The winning bid was submitted by AF1, a new startup indoor football league led by Jerry Kurz, who was a co-investor in the original AFL. The auction took place on Nov. 25, with the bidding starting at $2.5 million. AF1 won the bidding against another investment group called Acquisition Holdings.
The names and logos of the AFL and its teams
are included in the assets up for sale.

While the auction is closed, the sale of the league’s assets is not final until the completion of a sales hearing set for today when the money from the AF1 bid is due. It is possible that Acquisition Holdings, or any other interested group, could still buy the AFL by showing up at the sale with money exceeding the amount of the winning bid.

“The auction is closed but not complete until the sale hearing,” said Diana Casas, senior director of Moglia Advisors, which was appointed as trustee by the Northern District of Illinois U.S. Bankruptcy Court to sell the AFL assets. “If another bidder showed up with a bid higher than the AF1 bid, I would expect the trustee would ask the presiding judge to open it up if it is substantial.”

Among the AFL’s assets is its intellectual property, including the names and logos of the league and all of its teams.

Tulsa-based AF1 is planning to play in 2010, and the successful acquisition of the AFL’s assets would allow the league to use previous AFL teams and logos. To date, AF1 has announced plans to play in at least 16 markets, including Chicago, Salt Lake City, Phoenix and Orlando. More teams are expected to be added should the league close on its purchase of the AFL’s assets.

The AFL canceled its 2009 season after 22 seasons, citing financial problems. The league was sent into forced Chapter 7 bankruptcy and then in late August, it successfully filed to move into Chapter 11 protection.

Proceeds of the $6.1 million bid are earmarked for Fifth Third Bank, which is owed $7.7 million and is the largest secured creditor named in the AFL’s Chapter 11 filing. Other large non-secured creditors include NBC, which is owed $1.59 million. Former AFL Commissioner David Baker is owed $985,000, while former TV rights holder NBC is owed $540,000.

[NatePreds05]

With the Storm and the Gladiators returning it means without a doubt AF1 now owns the AFL.

[Caballo Diablo]

Court Approves Sale of AFL Assets to AF1
December 8, 2009 - Arena Football 1 (AF1)

FOTULSA - The League Office of Arena Football One announced today that the league has been approved to purchase the former Arena Football League's (AFL) assets.
US Bankruptcy Court Judge Susan Sonderby, who was overseeing the Chapter 11 Bankruptcy in Chicago, approved the Order of Sale of AFL assets to Arena Football One, LLC at a hearing Monday, December 7, 2009. Included in the assets purchased are all of the former AFL and former af2 team names and logos. AF1 Teams located in former AFL and af2 markets now have the option to adopt the former AFL and af2 team name and logo.

"With the official AFL asset purchase being finalized, Arena Football One will be the only league playing Arena Football in 2010," said Commissioner Jerry Kurz. "Our strong ownership groups and their respective markets/teams can now begin to fully brand themselves and continue to gear up for the AF1's Inaugural 2010 Season."