Vince McMahon Expected To Spend $500 Million On XFL Revival
Vince McMahon's announcement that the XFL will be back in 2020 piqued the curiosity of many people. It came at a perfect time because there was fresh interest in the subject matter thanks to ESPN's 30 For 30 documentary on the shelved football league. Although the XFL only lasted a season and drew worse ratings each week some people held a fondness for the nostalgia.
Revisiting an idea like the XFL is an expensive venture to pursue which is why Vince McMahon sold $100 million worth of WWE stock in December 2017 to fund the league. This might have been a good start but ESPN reports Vince McMahon informed insiders he actually expects to spend close to a $500 million price tag in the first three years on the revamped football league.
Oliver Luck was announced as the XFL's CEO and he will officially move into his offices across from WWE's Titan Towers on Monday. The league still hasn't picked any cities to play in but they're already selling merchandise from the XFL online store. This kind of early exposure could help immensely and determine interest, but there is a lot more work to do and money to be spent.
"People were focused on the $100 million, but the truth is that doesn't even get us to the 20-yard line," Oliver Luck said while making a football analogy to compare the funds required to restart the XFL.
Oliver Luck revealed player salaries would average around $75,000. Players who are in more demand stand to make more than the average, but players' and coaches' salaries stand to be the biggest cost for the league. The $75,000 average is well above the last incarnation of the XFL where players normally made around $45,000, but it's still far from NFL paydays.
Another huge expense for the XFL will be the insurance needed in order to operate. They must protect the league's assets and a proper insurance plan is vital to any plan of this scope and content especially with this kind of injury risk.
"I've been at all levels of football, and the importance of a broad-based insurance program cannot be understated," Luck continued as he discussed another huge cost for the XFL. "There are very few participants who underwrite for this market anymore and it is obviously costly."
Source: ESPN