San Antonio businesses at risk of losing big, AAF bankruptcy filings show

Bankruptcy petition filed in SA lists many local hotels, businesses as creditors

(Photo by Edward A. Ornelas/Getty Images)

SAN ANTONIO – The Alliance of American Football filed for Chapter 7 bankruptcy Wednesday after the league abruptly shut down operations last month.

The league made the filing in the Western District of Texas bankruptcy court in San Antonio.

The filing, obtained by KSAT-12, showed the league claimed assets of $11.3 million and liabilities of $48.3 million, with $536,160.68 in cash funds.

According to the documents, many San Antonio hotels, businesses and some schools were named as creditors in the filings.

The San Antonio Commanders were one of the eight franchises, and the league’s first training camp was held in San Antonio. 

More than a dozen San Antonio hotels are listed as creditors with one owed more than $600,000 and two others owed more than $400,000, documents showed.

A San Antonio catering business is owed more than $200,000, according to the filing.

The City of San Antonio and the Alamodome are listed as creditors, along with other cities, universities and stadiums where the league played its home games.

Documents showed the Alamodome, however, secured a deposit of more than $300,000 from the league. 

The league suspended all operations on April 2 after the eighth week of its inaugural season, but showed signs of financial distress after the first week when it did not make player payroll.

The league claimed there was a payroll glitch and then announced Dallas businessman Thomas Dundon would invest $250 million into the league and become the majority owner.

A week before the league ceased operations, Dundon told USA Today Sports the league was in danger of folding if it did not get support from the NFL Players Association.

Despite Dundon’s claims, players, coaches, front office personnel and fans were blindsided by the news. 

The Commanders were in the middle of practice when the news came down from the league.

KSAT-12 learned that players were paid their final game checks.

The league was a success from an attendance and interest standpoint in San Antonio.

The Commanders drew the biggest crowds in the league and were successful on the field as well with a 5-3 record.

However, the other seven teams struggled with attendance and failed to get a fan base similar to San Antonio’s.

The Alliance released a statement to sports business reporter Darren Rovell in regard to its petition for bankruptcy.

The league’s inaugural championship game had been scheduled for April 27.

(Editor’s Note: KSAT-TV is listed as a creditor in the bankruptcy filing along with other media outlets in the San Antonio area.)

About the Authors:

RJ Marquez is co-host of KSAT News Now and reports for Good Morning San Antonio. He's been at KSAT since 2010 and covered a variety of stories and events across the San Antonio area. He also covers the Spurs for on-air and digital platforms, including his Spurs newsletter. RJ has reported stories for KSAT Explains.