Reports: Alliance American Football League Ceasing Operations
Since February, I have told you that the league business model did not make sense. They were doing what I had been calling on air as the Netflix model. In other words, spending more money than they actually had and hoping that the debt would be eventually resolved. I was not a business major at Hobart College. I completely understand that businesses early in their existence can lose money The issue in comparison to other businesses is that the Alliance American Football League never had a plan on HOW to make money back. No one was going to the games (as pictured above in the blog). The league was spending too much and not generating revenue. It's a pretty simple answer that some people wanted to ignore.
The same goes for the soon to be XFL in 2020. I'll stick by my take of the league NEVER kicking off next year. I know Vince McMahon has sold close to 300 million dollars worth of stock. The XFL already has two things working against them.
1) All but one of the eight XFL markets are NFL markets with other professional football franchises in the city (St.Louis being the only one that isn't) . The fan following will NOT be there from the local fan bases. Plus add in the fact that the teams are playing in NFL stadiums and the attendance will look poor in similar fashion to the Alliance League
2) In 2001, there were many outlets that did not consider the XFL a "real" professional sports league. Some sports companies including ESPN did not even report the scores of the games on the network's bottom line. The direct correlation to the WWE already brings a negative (I'll argue unfair) perception of the XFL. There will be some people likely on social media,that will actively root for the failure of the XFL. The reasons could include anything from being against the WWE product, a passionate NFL/even Alliance football fan, or just a jaded former XFL fan.
I'll concede the point that Vince McMahon is a legendary marketing genius. However again I will ask a simple question: How will the XFL MAKE MONEY?!
Some would argue the XFL is already following the above mentioned Netflix model by hiring former NFL executives and head coaches and more without a regard for the salary figure. McMahon could benefit from watching the mistakes the Alliance American Football League made. However I think the notorious competitor Vince McMahon has shown to be, will outweigh his likelihood to make adjustments when needed early in the league's infancy.
Are you upset that the Alliance American Football League is shutting down? What does it mean for future professional American football leagues? Let us know below.