Trustee seeks court leave to sue Tom Dundon in failed football league bankruptcy case – The Athletic

It has been almost two and a half years since the Alliance of American Football, a professional startup league, collapsed after eight games and then filed for Chapter 7 bankruptcy. Since then, a story has emerged that the founder Charlie Ebersol led the league into the ground amid a financial house of cards while Carolina Hurricanes owner Tom Dundon, who bought the league on the brink of collapse in February 2019, made the lone something he could by closing the doors seven weeks later after injecting $ 70 million.

This scenario has taken a hard hit with what can only be described as a surprising turning point in the ongoing bankruptcy proceedings and the intertwined litigation brought by former players. A court-appointed bankruptcy trustee proposes a settlement in the players’ case that drops Ebersol as a defendant – without him paying a dime – but leaves Dundon’s status unchanged. In fact, administrator Randolph Osherow wants the court to hire lawyers for the AAF players to pursue an adversarial case against Dundon.

There have been numerous findings, including depositions from Dundon and Ebersol, in the players’ lawsuit, which is asking for $ 674 million. Osherow wrote to the court that Ebersol “cooperated fully and frankly.” After digesting what Ebersol told him about the league, the administrator decided to ask the court in a hearing later this month to end the case against Ebersol, son of the legendary leader. of NBC Sports Dick Ebersol, but to allow the administrator on behalf of the government to assume the litigation against Dundon (the trustee is an agent of the Department of Justice).

Michel J.

Anne G. Cash

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