All that’s left of AFL is on the Auction block
By JOHN LOMBARDO
Sports Biz Journal Staff writer
November 02, 2009

The AFL’s Philadelphia Soul had to fight to win 17 games and the right to hoist the Jim Foster ArenaBowl trophy in 2008. Now, anyone with a checkbook will likely be able to buy the championship hardware as part of a bankruptcy auction set for Nov. 25.

If the 60-pound silver trophy isn’t attractive enough, how about the authentic playing field from the Grand Rapids Rampage franchise? The field is listed as an asset of the shuttered league, which is now in Chapter 11 bankruptcy protection. The Northern District of Illinois U.S. Bankruptcy Court has appointed a trustee to sell the AFL’s assets.

As a result, the AFL’s intellectual property, including the name and logo for the league and all of its teams’ names and logos, is on the block along with myriad other items, such a 25 boxes of AFL equipment stashed in an O’Hare Airport storage facility, 40 boxes of AFL merchandise, and two flat-screen televisions still attached to a wall in the league’s Chicago office.

It is unclear what the sale means for any future iteration of the league, or whether a buyer of the AFL assets will resurrect it. A group led by Jerry Kurz, a co-investor in the AFL, already has created arenafootbal1, a new startup indoor league based in Tulsa, Okla.

There is no minimum bid or value listed for the assets and all proceeds are earmarked for a wide-ranging list of AFL creditors, including Fifth Third Bank, the largest secured creditor, which is owed $7.7 million. Other nonsecured creditors include former rights holder NBC, which is owed $1.59 million. Former AFL Commissioner David Baker is owed $985,000.

Baker said he is “saddened and disappointed” by what has happened to the league, adding that in 2008, the AFL had a $1 million gate for the ArenaBowl, record expansion fees and record attendance. “I sincerely believed the league was never stronger,” he said.

Former TV rights holder and minority investor ESPN is owed $540,000 and the AFL Philadelphia Soul franchise, co-owned by Jon Bon Jovi, is due $219,250. Full disclosure: Street & Smith’s Sports Group, publisher of SportsBusiness Journal, is owed $6,250 as an unsecured creditor.

“The real value is in the intellectual property,” said Alex Moglia of Moglia Advisors, a Schaumburg, Ill.-based corporate restructuring firm that was appointed on Oct. 20 to serve as the trustee to sell the AFL’s assets. As for the Foster Trophy, it’s likely to be sold after Moglia determines that it is AFL property.

“We preliminarily conclude that the trophy is included,” said John Collen, a partner at Tressler, which is representing Moglia Associates.

The AFL successfully filed in late August to move from a forced Chapter 7 bankruptcy to Chapter 11 protection in late August, the latest twist in the league’s demise. Jim Renacci, owner of the Columbus Destroyers, is listed as acting chief executive officer of the AFL. He did not return calls for comment.

“A Chapter 11 takes the bankruptcy into a public forum and creates a fair and thorough sale process,” said Richard Lauter, an attorney in the Chicago office of the law firm Freeborn & Peters, which has been retained to represent the creditors committee made up of the largest unsecured creditors. “In any bankruptcy, the value of any asset is what someone is willing to pay for it. That’s the hallmark of the bankruptcy sales process.”

The deadline to submit a bid on the AFL is Nov. 20, with the auction set for Nov. 25. There is no requirement that a bid must include all assets listed. It is also possible that a “stalking horse” bid will already be filed by the auction date, a process that could drive up the value of the sale.

“In the sales process, you can have what is known as a stalking horse bid, and it is an initial bid that is out as the baseline for other bidders to exceed,” Lauter said.


http://www.sportsbusinessjournal.com/article/63923




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Edited: 11/02/2009 at 01:02 PM by Caballo Diablo

This statement is interesting:
Former AFL Commissioner David Baker is owed $985,000.

Someone can just buy the trophy?? That is really sad.

Is there a link where the general public can bid online for the items?

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INDIANA FIREBIRD FAN FOREVER!
Touchdown Eddie Brown #1 Alltime Best AFL Player!!!


Bring the AFL or Af2 to Indy!
By the time they bring it back, TD Eddie Brown & Raymond Philyaw will be the coaches!



Edited: 11/02/2009 at 01:28 PM by NanIndy

The bankruptcy court isn't wasting any time in liquidating the AFL's assets are they? It'll be interesting to see who ends up with the "intellectual property".

I wonder how much the trophy is?

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2009- 12-7, Fantastic Season, Congrats to the team!!!
2008 Midwest Division Champs
2007 Wildcard Team
2006 American Conference Champions

its an auction so the trophy will go to whoever bids the most! hopefully Foster gets it!!!

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Go Blaze!
Go Thunder!

I'm looking for any Utah warriors of the nifl items such as jerseys helmet anthing... Even programs if you have anything please let me know!

http://goldspeed101.blogspot.com/

That is just wrong that the Arenacup trophy can be auctioned. I hope someone big steps up that still loves arenaball and buys it.

Where can the general public bid at?? Thanks!

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INDIANA FIREBIRD FAN FOREVER!
Touchdown Eddie Brown #1 Alltime Best AFL Player!!!


Bring the AFL or Af2 to Indy!
By the time they bring it back, TD Eddie Brown & Raymond Philyaw will be the coaches!



Edited: 11/02/2009 at 05:57 PM by NanIndy

Last nite, I saw a guy on Ebay out of Dixon Illinois , auction off an 18" replica of the Chicago Rush Arena Bowl XX trophy for $400.00 after 27 bids. It was a near perfect replica. Wish I had that kinda coin to throw at it.

The "general public" doesnt really have the kind of money to buy any of the stuff

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Go Blaze!
Go Thunder!

I'm looking for any Utah warriors of the nifl items such as jerseys helmet anthing... Even programs if you have anything please let me know!

http://goldspeed101.blogspot.com/

MacGregor - MacGregor - MacGregor - MacGregor !!

Possibly one of these people over at the Sports Business Journal could give you the staff writer's email and you could ask him (JOHN LOMBARDO)

http://www.sportsbusinessjournal.com/about

Several things that I do not understand within this article are as follows:

1. Some intellectual property has already been sold but evidently not through an auction process. The Orlando Predators name is now owned by Orlando Predators Sports Group and the Arizona Rattlers name is owned by Sidewinder Investment Group, and the Philadelphia Soul name is owned by John Bongiovi, a.k.a. Bon Jovi. All other AFL team names still appear to be owned by AFL Enterprises LLC at this point. Why have some names already been pruchased and others will go to auction, did the court give these three "Buy It Now" pricing?

2. I thought that the 2008 ArenaBowl trophy was awarded to Philadelphia, I remember seeing pictures of the parade with Jaws and Bon Jovi standing there with the trophy. Why wouldn't that trophy be property of the team that won it on the field instead of the league at this point? So, if a 60 pound trophy will be auctioned, just what trophy is it, what year? Could this be a trophy for the 2009 season, the season that was never played?




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Don't Miss The Hiss!
2009 South Division Champions
2008 Arena Cup Champions
2008 American Conference Champions
2004 Mid-South Division Champions
2003 Southern Division Champions
2002 Southern Division Champions
2001 South Central Division Champions
2000 American Conference Champions


Edited: 11/03/2009 at 03:53 PM by SJSUX1

The trophy is passed on to each team, at least it used to be. Each team would be engraved on it. Maybe there were replicas. I got to see it at one of the Arenabowls.

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INDIANA FIREBIRD FAN FOREVER!
Touchdown Eddie Brown #1 Alltime Best AFL Player!!!


Bring the AFL or Af2 to Indy!
By the time they bring it back, TD Eddie Brown & Raymond Philyaw will be the coaches!

I haven't seen an 18 inch one, but I do have one that is about 9 inches that I got from the team for something like $10 at one of their year end sales.

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Everything you will get out of life will be based solely on what you put into it.

The league owns the trophy. In fact the league took the trophy the Rush won in 2006 back about halfway thru the 2007 season. I don't think it was ever replaced with a replic like it was supposed to be.

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Everything you will get out of life will be based solely on what you put into it.

The man is still full of it. If it was so strong then why do it come tumbling down a few weeks after he left. Why did he quit if it was so good?

Besides I don't think the league owns him a penny, but I'm sure if they looked into his exspence account they could find things he owned them for.

Also Dave how much did all those trips from New York to LA to watch your son play cost the league?

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Everything you will get out of life will be based solely on what you put into it.

Edited: 11/03/2009 at 05:29 PM by AFLforLIFE

Again, is there a link that the general public can bid on any of this stuff or just see what they have? Thanks.

-------------------------
INDIANA FIREBIRD FAN FOREVER!
Touchdown Eddie Brown #1 Alltime Best AFL Player!!!


Bring the AFL or Af2 to Indy!
By the time they bring it back, TD Eddie Brown & Raymond Philyaw will be the coaches!

Arena Football One Announces AFL Asset Bid
November 11, 2009 - Arena Football 1 (AF1)

TULSA - The League Office of Arena Football One announced today that it has submitted a formal offer to purchase the assets of the Arena Football League (AFL) from the Trustee in the Chapter 11 bankruptcy currently pending in the US Bankruptcy Court in the Northern District of Illinois.

The league is seeking Court approval to become the "stalking horse" bidder for the assets. If approved, the league's bid of $2.5 million for all of the AFL's assets will set the floor price for the auction bidding process, which is current set for Wednesday, November 25, 2009.

"The assets have little or no inherent value unless you are willing to invest the capital necessary to develop and use those assets in an on-going business" said Dan Newman, Chairman of the Board of Directors for Arena Football One, LLC.

AF1 is committed to bringing the excitement of Arena Football to the fans after more than a year absence from AFL markets. The last AFL game played was ArenaBowl XXII in July 2008. In December 2008, the AFL cancelled the 2009 season and then announced an indefinite suspension of operations in August 2009.

"We felt it was essential to play a 2010 Season and we are committed to making that a reality under the Arena Football One banner," said Commissioner Jerry Kurz. "The game of Arena Football will be played in markets across the country and our teams will continue offering fans an immensely-entertaining experience."

the 18-inch trophy was one that members of the front office (and I believe some season ticket holders) were able to purchase following the 2006 season. Don't remember how much I paid for mine, but it wasn't $400.

It was alot nicer looking than my 5" replica.....

I never heard or seen an 18 inch trophy, but the one I paid $10 for is 8 1/2 inches tall.

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Everything you will get out of life will be based solely on what you put into it.

there was one they had in very limited quantities that was crazy expensive. Not worth what they were charging IMO

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