On Tuesday, attorneys for Oliver Luck requested the Delaware Bankruptcy Court handling the XFL Bankruptcy that it would like for the Court to lift the stay of the lawsuit the former commissioner has with Vince McMahon.
Motion to Lift Stay by MMA Payout
The lawsuit was filed earlier this year in which Luck requested that he be paid the bulk of his $35 million salary which was personally guaranteed by McMahon. Alpha Entertainment, the company that owned the XFL, cited that Luck was fired for cause. Luck disputed the rationale, however, McMahon’s lawyers cited that the lawsuit must be stayed pending the resolution of the Chapter 11 Bankruptcy of the company. Despite Luck’s opposition, the federal court in Connecticut determined that the case should be put on hold until the sale of the XFL to another owner.
As most know, the assets of the XFL were sold to a company spearheaded by The Rock and his business partner Dany Garcia. The sale considered the potential liability of the XFL in the lawsuit and an agreement was set in place which would require Luck’s attorney to request court approval after the sale to re-start the lawsuit.
Payout Perspective:
While in most cases, the acquiring company assumes the liabilities of the previous company, this lawsuit differs in that McMahon is sued personally with the potential that Alpha Entertainment a party. We shall see as the lawsuit continues how culpable the XFL is as opposed to McMahon. Assuming the personal guarantee is valid, Alpha Entertainment would likely point to that document as key in finding McMahon as the holder of any liability in this breach of contract lawsuit against the former commissioner.
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