Clarification from AFL's trustee

[preeths]

A clarification we received from the AFL's trustee:

Arena Football League owned by Trustee in Bankruptcy not yet owned by Arena Football 1

On October 20, 2009 , Alex Moglia was appointed the chapter 11 trustee for the Arena Football League. The auction of the Arena Football league was conducted on November 25, 2009, with the high bidder being the Arena Football 1. Contrary to recent press releases, Arena Football 1 does not own the assets unless and until the closing occurs, which is scheduled for December 18, 2009. If the there is no closing, the trustee has the right to pursue another party.

[NatePreds05]

A minor technicality. That is truly splitting hairs.

[preeths]

Not really, though according to the trustee they don't have any particular doubts about AF1 being able to live up to its offer. Basically, it's similar to a home sale. At this point, both buyer and seller have agreed on a price, but until the sale actually closes and the seller has the money, no actual sale has occurred and ownership has not transferred. Here's the practical side. AF1, for instance, would not be able to enforce any potential infringement issues until it owns the property in question.

[Caballo Diablo]

Those pesky legalities

[NatePreds05]

And in 2 days the pesky legality will be taken care of.

[Caballo Diablo]

More than likely, but you still can't move into the house until you finished the paperwork at the closing table.

If the articles are correct that the "other" bidding party went to $6 mil and only lost by $100,000 it looks like the intent was to just raise the price and not actually purchase.

[preeths]

And in 2 days the pesky legality will be taken care of.

It's not really just a pesky legality, it's the actual purchase. That's the only point the trustee was trying to make.

[Minor League Man]

And now the purchase is complete:
http://www.arenarush.com/news/af1-finalizes-purchase-of-afl-assets/

[Bruiser]

And now the purchase is complete:
http://www.arenarush.com/news/af1-finalizes-purchase-of-afl-assets/
This according to the same organization that previously announced prematurely? No thanks I'll wait until the trustee or Kurz says something officially. Until then hold on to your season tix $$$ folks.

updated:
I guess conceding defeat is official enough.
http://www.mlive.com/rampage/index.ssf/2009/12/rampage_lose_identity_as_arena.html

[jcompton]

I certainly hope this means they intend to start trading as the plain old "Arena Football League," because this "AF1" business is ridiculous. It's like an in-joke, and not a very funny or clever one, either. ("Get it? We used to be Arena Football Two, but now we're one better!")

[Minor League Man]

This according to the same organization that previously announced prematurely? No thanks I'll wait until the trustee or Kurz says something officially. Until then hold on to your season tix $$$ folks.

updated:
I guess conceding defeat is official enough.
http://www.mlive.com/rampage/index.ssf/2009/12/rampage_lose_identity_as_arena.html

The AF1 owns the assets, but they STILL refuse to join and are STILL hoping for the return of the former AFL?

To quote the karate instructor from UHF: "STUPID! YOU'RE SO STUPID!"

[Caballo Diablo]

I certainly hope this means they intend to start trading as the plain old "Arena Football League," because this "AF1" business is ridiculous. It's like an in-joke, and not a very funny or clever one, either. ("Get it? We used to be Arena Football Two, but now we're one better!")
It's a no win situatation.

To start using the AFL would seem counter productive. The real fans of the game know what's going on and would more than likely watch any Arena League. The casual fans, you know, the ones that are on the fence and need to put their butts in seats. They never fully accepted the game and all they know is the AFL lost it's butt, went bankrupt, and left lots of unpaid bills.

Advertising/sponsorship, TV, merchandise, etc. all center around butts in seats.

Arena Football one, as of yet doesn't have enough of the markets to fool the casual fan. af2 fans are aware their league folded just to avoid the legalities of being connected to the AFL.

AF1 is going to put some teams in markets and pretend it's the same one, but watching only one game will blow that misconception of having an on the field AFL product.

This first year will probably be a product between the af2 and AFL, which is ok, but most that attend will agree that it's closer to the af2.

[Caballo Diablo]

The AF1 owns the assets, but they STILL refuse to join and are STILL hoping for the return of the former AFL?

To quote the karate instructor from UHF: "STUPID! YOU'RE SO STUPID!"
Could you give us some specifics reason for the AFL holdout owners for being stupid?

I'm not sure what their goal is, but I feel it's a return to an actual AFL quality product on the field. Even if the AF1 had been able to field a two tier league this season it still wouldn't have produced that. Heck, it might not even be possible to reproduce that level of talent again without over spending, and we know where that leads.

Maybe there's some problems behind the scenes with the two differing groups that we the fans don't know the specifics of. Maybe they're unhappy with Kurz and Niro for suing the AFL and forcing them into bankruptcy. It was this group that ultimately sank the AFL, basically so they could own it themselves.
The split was similar to an ugly divorce and they may never be amicable again.

This first year the AF1 travel sched is a huge negative, this kept af2 teams from joining. Possibly the holdouts don't like the entire business structure of the AF1.

I don't know if it was wise to not join this season or not, but I'm pretty sure those millionaire businessmen aren't stupid. Anyone thinking it's a great deal or a bargain are free to put up their own money and start a franchise, I'm sure the AF1 could find an opening for you.

[jcompton]

The casual fans, you know, the ones that are on the fence and need to put their butts in seats. They never fully accepted the game and all they know is the AFL lost it's butt, went bankrupt, and left lots of unpaid bills.


The casual fans are also the ones who need to be able to pass the Snicker Test. As in, can you listen to a 15-second pitch about the product without snickering?

"Arena Football One" is a lousy pun, involves a confusing sporting homonym (one/won) and is generally goofy.

Please see also: PIFL.

Mind you, they have much bigger problems than their name. But the name, at least, is easy to fix.

[Caballo Diablo]

The casual fans are also the ones who need to be able to pass the Snicker Test. As in, can you listen to a 15-second pitch about the product without snickering?

The Snicker Test - That's a new one, I like it - haha

[Kicker3]

The new Af1 premier indoor Football league (lol) is a complete joke. The only one getting rich on this deal is the commisioner. Salaries are lower, expenses for the teams are higher and he really thinks this league is going to make it. Look at the travel costs from the big cities in the league. Every team is going to have to fly. Does he still think he's going to get the 15,000 to 20,000 people a game. Where are the owners going to get the money for these expenses. The quality of play isn't any better then the then the IFL in fact the IFL is superior in players,organizations and how the league is structured, travel and just the better all around league. before I close can you please tell me what indoor football league has given money back to to owners for being successful the only I can think of is the IFL

[indoor fan]

The new Af1 premier indoor Football league (lol) is a complete joke. The only one getting rich on this deal is the commisioner. Salaries are lower, expenses for the teams are higher and he really thinks this league is going to make it. Look at the travel costs from the big cities in the league. Every team is going to have to fly. Does he still think he's going to get the 15,000 to 20,000 people a game. Where are the owners going to get the money for these expenses. The quality of play isn't any better then the then the IFL in fact the IFL is superior in players,organizations and how the league is structured, travel and just the better all around league. before I close can you please tell me what indoor football league has given money back to to owners for being successful the only I can think of is the IFL

Please explain how the IFL is superior in players?

In fact the IFL talent level is much closer to the AIFA, than the AF1. I would say the IFL and AIFA talent level is about equal.

[mrsummitcitypigskin]

How can you compare player talent from 1 league to another, when we're
not even sure the AF1 is gonna launch??

[preeths]

I have to agree that the former AFL owners who are outside of AF1 are wasting their time. They just lost all their team identities, the right to call themselves "Arena Football" and what, two-thirds or more of their former markets? They essentially have nothing, save maybe for a beef with someone at AF1 that's preventing the two groups from working together. They want to reestablish the old level of the AFL? That was nothing more than a way to burn money, and that's why the AFL just went through bankruptcy. Their group couldn't raise enough cash to win the assets at auction. That shows the lack of real commitment or resources.

Swallow your pride, compromise and join AF1. It's time to realize that's your only hope of getting back on the field and growing the game again. Arena Football needs to take a good hard look at indoor soccer's history to see the future it faces if pointless, expensive battles continue.

[Pounder]

They want to reestablish the old level of the AFL? That was nothing more than a way to burn money, and that's why the AFL just went through bankruptcy. Their group couldn't raise enough cash to win the assets at auction.

I think they couldn't raise enough cash because the larger "they" burned through too much money they hate to lose (even if they had plenty more to lose)... and the "larger they" are the NFL owners and others who are now completely out of the game. I think the owners you refer burned through their "real" money and needed a white knight to ride in.

$6 million isn't that much. That's telling to me.

[preeths]

I think they couldn't raise enough cash because the larger "they" burned through too much money they hate to lose (even if they had plenty more to lose)... and the "larger they" are the NFL owners and others who are now completely out of the game. I think the owners you refer burned through their "real" money and needed a white knight to ride in.

$6 million isn't that much. That's telling to me.

That's what keeps popping out to me. The AFL's total debts (exclusive of those owed by teams) weren't much more than $10-12 million, yet when all the owners were supposedly working together, they couldn't work out a plan with creditors to pay them off? Sure, the NFL guys pulled out, but what was left of the AFL cobbled together a $6 million bid of its own, just shy of AF1's effort. It appears extremely likely the creditors would have taken a settlement in the $6 million range as the trustee admits it never expected to raise that much in the auction.

Now one group, which has taken two years off, lost all its team names, lost the right to call itself "Arena Football," lost nearly all its sponsors, some of its arenas, several markets and untold goodwill expects to somehow come back and in so doing compete against AF1, a league that will have a year head start, recognized team names, the "Arena Football" moniker, and seemingly a more sensible, sustainable business plan? How is this to be seen as anything other than foolish?