With all the talk over the past week around whether Tom Dundon bailed out the AAF, or bought into the company, we’re starting to see some more information come out around the deal. As with most billionaires, they are strategic with their investments and smart with how they handle the deal.
Daniel Kaplan of SportsBusiness Journal reports that the money has yet to be fully paid, and that the cash will be transferred over an undisclosed period of time. Unless it won’t be; Dundon reportedly has the ability to stop throwing good money after bad.
“Two sources said Dundon can stop funding if he decides the investment is no longer worth it,” Kaplan writes.
The Alliance has been very limited in its details of the Dundon deal. Responding via an AAF spokesperson on whether he can back-out from the bailout, Dundon told Kaplan, “I have committed to investing $250 million into the Alliance of American Football. We now have the necessary capital to accelerate growth. We have the capital to make this a sustainable and profitable league.”
If Dundon changes his mind, however, he can reportedly leave the deal with no repurcussions.
Kaplan, citing unnamed sources, called it a “week-to-week” deal, and that Dundon could quit funding the AAF “on almost a moment’s notice.” It’s unclear what would happen at that point; beyond the AAF going away, Dundon presumably would own the majority share of the player-tracking technology that has fueled the app that allows fans to guess plays and outcomes in real time — a key component for real-time betting and other interactive uses.
If Kaplan’s is correct, the writing is on the wall: The AAF nearly disappeared after one week of play, and it could in theory disappear at anytime this season.