UPDATE: 2-20-2019: From Associated Press: Charlie Ebersol said Tuesday that reports the Alliance was short on cash and needed a bailout from Dundon in order to make payroll were untrue. He said the league had a technical glitch in its payroll system that has been fixed.
“Tom’s funds were transferred to Alliance accounts last week, and players have never been in jeopardy of not receiving their earned paychecks,” Ebersol said. “It was a clerical error and has been resolved. The two are unrelated.”
(ORIGINAL STORY 2-19-2019)
After multiple reports of financial problems leading to payroll issues, the new The Alliance of American Football league is getting a major infusion of cash.
The Memphis Express is one of eight AAF teams, in a league which debuted earlier this month.
Local 24’s sister station CW30 is the official television partner of the Express and will carry three live games on CW30 later this season.
Tuesday morning, a National Hockey League owner made a significant contribution to the league.
According to a Carolina Hurricanes release:
The Alliance of American Football today announced that Carolina Hurricanes Chief Executive Officer and Owner Tom Dundon has committed $250 million to The Alliance of American Football and will serve as chairman of The Alliance’s board of directors, effective immediately.
“They had the commitments to last a long time, but maybe not the money in the bank,” Dundon told North Carolina radio station 99.9 The Fan. “My money is in my bank. I’m sure of it.”
Dundon added to 99.9 The Fan: “My investment will keep this thing for years and years to come. The numbers for everything were great, it was just the way they raised their capital and the timing of it.”
The news came after the publication The Athletic reported the AAF nearly ran out of money after its debut earlier this month, and would have missed payroll Friday if not provided money.
ESPN also reported AAF co-founder Charlie Ebersol denied the cash commitment is a “bailout.”
“When we got out of the first week of games, we saw there was so much interest from investors, and if we had one person who could take care of us for a very long time, that would be great,” Ebersol told ESPN.
Memphis Express President Kosha Irby told Local 24 News on the phone Tuesday “we’re fine” when asked about the team’s financial situation.