Last we we reported that Tom Dundon, former savior of the AAF has filed charges against Ebersol in Bankruptcy court. Now, it seems, Ebersol has his own “misrepresentation” filings as well.

Charlie Ebersol, the co-founder of the now-defunct AAF, responded to a lawsuit filed by the league’s former players by alleging that it was the AAF players who committed “intentional misrepresentations” and fraud, legal documents show.

A class-action suit filed in April filed by former players, alleged that Ebersol and co-defendants Tom Dundon and Legendary Field Exhibitions, LLC, among others, committed fraud and didn’t live up to their contracts.

In the complaint, it is alleged that Dundon, Ebersol and others “concealed and suppressed a material fact about their intentions for the long-term viability of the Alliance of American Football.” The league shutdown before the end of its first season and filed for Chapter 7 bankruptcy in April.

Ebersol’s response document does not say what type of fraud or misrepresentation he is alleging that the players committed. The document does allege that the plaintiffs had “material breaches of obligations” and “directly interfered with Defendant’s performance of its obligations” but does not state what those breaches or interference are.

It also also says Ebersol “denies, both generally and specifically, each and every allegation contained in the Plaintiff’s Complaint” and believes the plaintiffs are not entitled to any damages and Ebersol “acted reasonably, in good faith and without malice based upon all relevant facts and circumstances known by Defendant at the time.” Ebersol also alleges that the Plaintiffs should not receive any damages due to the “negligent” and “intentional intervening acts of a third party,” shielding Ebersol from liability. The document does not say who the third party is.

Ebersol is also alleging that the players should be “barred from claiming any injuries or damages because such injuries and damages are the sole, direct and proximate result of Plaintiffs’ conduct.” The document does not state what that conduct is.

“We’re frustrated that the league, from the beginning, has decided to treat the players like this,” said Jonathon Farahi, the attorney for the players. “Football is a competitive, violent sport, and this league failed to keep up its promise to its players. From Day 1, Charlie Ebersol and all of the backers of the AAF promised the players one thing, that this was a players’ league.

“Their actions have been completely different in reality.”

This week in the XFL we go over the importance of Bob Stoops taking a voluntary pay cut from his role at Oklahoma, discuss the rumor that Tier 1 quarterbacks would be allocated to teams, touch on Tom Dundon trying to get a refund for his AAF investment and lastly we look at the trademarks the XFL recently filed for what is rumored to be team names for the Seattle franchise.

We’ve already heard a lot about the closure of the Alliance of American Football, but more news just keeps coming. Former AAF investor ,Tom Dundon, who many thought would be the savior of the league is now sticking another knife in the wound of the former company.

Daniel Kaplan of TheAthletic.com reports that Dundon has filed a claim in the Alliance of American Football’s bankruptcy case. Dundon says that he was coerced into investing in the fledgling league due to “misrepresentations” and is looking to retrieve the $70 Million that he had put into the AAF to keep them afloat, before ultimately pulling the plug on April 2 prior to week 9.

“Even though AAF executives told [Dundon Capital Partners] its contribution would get the AAF through the first season, those executives knew at the time of the execution of the Term Sheet that the AAF would likely need an additional $50,000,000 (including League revenue) on top of [Dundon Capital Partners’] investment of up to $70,000,000 to get through the first season,” the document alleges. “The AAF and its executives never disclosed this information to [Dundon Capital Partners].”

Basically, Dundon was led to believe that his $70 Million would be enough for the league to make it through it’s first season. When in reality the AAF knew that it would require roughly $120 Million.

“The AAF further represented that it could survive the season with only $55,000,000, leaving substantial capital to prepare for the following season,” the document contends. “During the weeks following the execution of the Term Sheet, [Dundon Capital Partners] learned a number of alarming facts that revealed that the AAF was not forthcoming with Dundon and [Dundon Capital Partners]. [Dundon Capital Partners] learned that, in addition to not having the funds to pay salaries after the first week of the League’s games, the AAF also had accumulated more than $13,000,000 in unpaid debts and commitments. The AAF did not disclose these unpaid debts or commitments to [Dundon Capital Partners] prior to the execution of the February 14, 2019 Term Sheet.”

The former investor also states that the Alliance failed to inform him of “ongoing threatened litigation from a past associate who claimed to be a co-founder of the League and who was suing to obtain a 50% interest in the AAF.”

All in all, this is just another sad story about a league that many of us enjoyed watching. Fortunately, from what we’ve seen coming out of the XFL, there doesn’t seem to be any financial issues.

We have heard that the Alliance of American Football was in bad shape, but today it seems that those rumors are coming to fruition. It seems that the same man that seemly saved the league mid-season, Tom Dundon, has made the call to pull the plug on the league. Dundon lost $70 million in the few weeks that he was control of the league.

Last week Dundon hinted that this news was coming when he told USA Today that if they could not secure a partnership with the NFLPA then it would not be financially feasible to keep the league afloat. It is now being reported that an annoucement is coming in the coming hours that the AAF is suspending all football operations, much to the chagrine of co-founders Charlie Ebersol and Bill Polian. The league has not folded, yet, but clearly without capitol there really is no other choice for Ebersol and Co.

PFT is reporting that the AAF needed roughly $20 million to get to the end of its first season. Instead, the season will end with two weeks left in the regular season, and with a four-team postseason that never comes to fruition.

Per ESPN, an official announcement is coming at 5pm EST.

Sources: The AAF will suspend all football operations today. New owner Tom Dundon will lose approximately $70 million on his investment. Dundon makes decision against wishes of league co-founders Charlie Ebersol and Bill Polian.

— Darren Rovell (@darrenrovell) April 2, 2019