View single post by tamalie
 Posted: Wed Apr 3rd, 2019 02:27 am
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tamalie

 

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The AAF ran out of money in about week two or three. It got a new money mark who pledged around $250,000,000, putting in $70,000,000 of that right away. However, the league still kept losing money at an alarming rate because the cost of running a pro football team with 45 to 50 players on the roster with all of those coaches and support staff members requires major capital and cash flow. The TV revenue and other income generated by the AAF wasn't remotely high enough to meet the operating expenses.

To stem the tide of losses and make the AAF work, the league wanted the NFL to send in practice squad guys. NFL teams would presumably have paid for all or most of the salaries for the guys it had under contract which would have greatly reduced costs for the AAF. It was also assumed that interest from NFL fans in seeing their team's players in the AAF would have raised TV and other revenue. It was seen by the AAF as the only path to survival.

The NFL was receptive to doing something, but made no promises. The collective bargaining agreement between the NFL and the NFLPA doesn't allow for this type of arrangement. The NFLPA would have had to make an exception, something that likely wouldn't have happened unless the NFL made some concessions to the union. The AAF and the NFLPA had talks, but it was clear that a solution wasn't going to come in time for the AAF, certainly not this season and probably not 2020 either. Given the massive financial losses, the money mark, Carolina Hurricanes owner Tom Dundon, decided to pull out and not put in the remaining $180,000,000 he'd committed to providing.