XFL 2001


Vince McMahon and Dick Ebersol announces the formation of the XFL – a new professional football league
February 3, 2000
Greenwich, CT – Vince McMahon on ESPN announced the founding of a new football league, the XFL, to begin play in the spring of 2001. McMahon announced the new league, a league completely independent of the NFL would be “tasked with re-imagining the game of football.” Standing beside him was Co-Founder Dick Ebersol, the television executive for NBC. Ebersol added, "We’re excited to be a part of this historic and unique opportunity to launch a new football league to air on NBC in primetime beginning each February at a time when the public’s interest in football is at its absolute peak – one week after the Super Bowl. Together with the McMahon organization, we want to put the fun back into professional football."
McMahon announced that the league would initially be operated as a single-entity model, with the league owning the rights to the teams, players, and coaches under the corporate names, Alpha Entertainment LLC(McMahon) and Legendary Field Exhibitions LLC(Ebersol). The agreement calls for each group to own 50% of the league. The two ownership groups have already committed 200 million dollars to the new league, enough to finance the league, according to McMahon for it’s first four seasons. The league does plan to move towards a hybrid franchise model with each team essentially operated as its own business with different owners and the league itself was a separate entity which in exchange for franchise fees paid by the team owners provided rules, officials, scheduling and the other elements of organizational structure, while a pool of money was allotted to teams to aid in travel costs. The plan is for owners to pay $10M to buy a half interest in a team. The league would own the other half.
Ebersol then spent considerable time outlining the major tenets of the new league, among them we highlight the following:
-- An eight team league to play a 10 game season from early February into May, concluding with a 4 team playoff, and the XFL Championship game, which will be known as The Million Dollar Game which will have the players on the winning team garnering $25,000.
-- The XFL has negotiated a television contract with NBC, TNN and UPN that would air all four games every weekend, including 8pm Eastern Time featured games on Saturday and Sunday night. The arrangement with these three outlets likely would garner some exposure for the league, but little revenue. The networks would however cover all production costs.
-- Teams, along with their coaching staffs, venues and identities will be announced over the next months, with all teams expected to have full operations ready to go for ticket sales by August, and a player draft on October 28th, 29th and 30th of 2000.
-- Each team will have a roster size of 40 players. The XFL will pay a "non-negotiable" standardized player salary of $37,500($1,500,000 per team).
-- The objective of every XFL player will be to win games. XFL players will be paid salaries to play, but they’ll be paid more to win. Each week the winning teams will share in a victory bonus pool, giving added significance to each week’s matchups.
-- The coaching salaries varied by title, with $500,000 for head coaches, $200–250,000 for coordinators, and $75–150,000 for position coaches. Each team employed ten total coaches, putting the total coaching staff expenditures at around $1.5 million per staff and $12 million for the entire league.
-- Players and coaches under contract will be permitted to sign with the NFL or CFL but only after the conclusion of the XFL Championship game.
-- The league is open to allowing collegiate underclassmen to sign and enter the XFL Draft.
-- The league has already hired several members of its football operations team, including the league’s Director of Football Operations, Michael F. Keller, League President and Chief Operations Officer, Basil V. DeVito Jr, Vice President, Billy Hicks, and the Director of the Football Competition, Dick Butkus.
Television viewers will be given unprecedented access with cameras positioned in locker rooms, on sidelines and in the helmets of selected players. XFL players, coaches, locker rooms and huddles will also be mic'd, providing viewers with unique insight into the strategy of the game and enabling them to fully experience the true emotion, attitude, and intensity of the players, both on and off the field. Both, Ebersol's NBC and McMahon's WWE will cross-promote the XFL during their respective programming.
It is also reported that the XFL is currently negotiating with players such as Jim Druckenmiller, Dave Krieg, Rashaan Salaam, Jeff Hostetler and Bobby Hebert.
"The XFL is a new venture of affordable entertainment that will take advantage of the abundance of athletic football talent available and will provide it to more fans in more cities," said McMahon. "We are encouraged by the overwhelming response from potential owners and stadium operators and are anxious to begin building XFL franchises in various cities across the country, and possibly abroad."
Paid to Play, Paid More to Win
March 15, 2000
Greenwich, CT – Why is there so much interest in this league? Mostly because the XFL salary scale is unique, and may prove to be beneficial to many players, especially the ones who play on winning teams. The league has stated that they will be paying a base salary of $37,500 for each player per season. There is also an incentive plan, with players on teams that win getting more cash. Of course it is the incentives that make this league worthwhile. After each winning game, winning team will split $100,000. The team that wins the championship will split an additional bonus of $1,000,000. On a 40 man roster, these incentives can add up in a hurry. For example, a regular player who plays on a winning team, with an 7-3 record for example, and that goes on to win the championship will actually make about $85,000. The potential is there for a player to more than double his base salary. On the other hand, a player on a losing team, with a 3-7 record for example, and that misses the playoffs, would make about $45,000. Not too bad for three months work.
Oliver Luck Named XFL Commissioner & CEO
March 28, 2000
Greenwich, CT – The XFL today announced that former NFL and NCAA executive and quarterback Oliver Luck has been named the league's Commissioner & Chief Executive Officer. The XFL kicks off in early 2001 and will deliver a fan-centric, innovative experience, including fast-paced games and a family-friendly environment, complemented by cross-platform viewing options and real-time fan engagement.
"Oliver and I share the same vision and passion for reimagining the game of football," said Vince McMahon, XFL Founder and Chairman. "His experience as both an athlete and executive will ensure the long-term success of the XFL."
"Football has always been a constant in my life and I'm excited about the unique opportunity to present America's favorite sport to fans in a new way," said Oliver Luck. "The XFL will create first-class organizations that local cities across the country will be proud of."
XFL Almost Ready to Reveal Inaugural Locations and Teams
May 2, 2000
Greenwich, CT – A planned competitor to the National Football League has identified the eight markets it would like to open with next year, and hopes to unveil some of the locations in the next month. “I think we’re going to have an announcement, probably next month, relative to the first three or four teams,” XFL Commissioner Oliver Luck said on Thursday. “Once we do that, you’ll know more about where we stand with respect to the rest of them.”
The XFL, with initial funding from Vincent K. McMahon and Dick Ebersol, said it would begin play with eight teams in February 2001. However, they believe a successful season will attract owner-investors, help negotiate a bigger TV broadcast deal and build league branding, Luck said in an interview on NBC. The XFL would be the latest in a series of leagues to compete with the NFL since the 1970s, including the World Football League, the United States Football League -- all of which failed. "McMahon and Ebersol is very serious about the XFL, and others may join him soon," Luck said.
Luck, the former Commissioner with NFL Europe, declined to reveal other owner names, but said “they’re well known, very financially strong people who either have some ownership interest in football or hockey primarily.” He said each owner would put up at least $10 million initially, and they have been told to expect losses of $10 million to $20 million a year for the first three years. Profits would follow somewhere in the third to fifth years. The plan is to begin with eight teams -- although it may start with six -- mostly in markets not served by the NFL, such as Los Angeles and Las Vegas. On top of those two, Luck said markets would also likely include some other larger cities based on feedback from fans signing up to reserve tickets. Orlando, Florida, was a strong East Coast contender, while San Antonio, Texas, appeals to the Hispanic fans that the XFL plans to court aggressively, he added. While Luck said no stadium deals have been officially signed, the XFL has agreements with six stadiums. He said the XFL is talking with cities about using their stadiums in deals under which the XFL would pay a facility fee and share revenue generated on football game days. Luck said past NFL rivals failed due to overspending, unrealistic expectations and overly gimmicky approaches. The XFL, however, will have a salary cap -- like the NFL -- and is assuming average per-game attendance conservatively at 20,000.
“We’re much more realistic in our expectations. We’re managing our costs better than I think the other failed leagues did. The XFL will not spend heavily on a few star players like the USFL did. The XFL model is based on attracting players from the bottom half of NFL rosters, many of whom have turned into NFL stars when given a chance to play. The XFL will aim to be more innovative, possibly putting microchips in balls to help referees with ball placement, as well as embracing the betting side of the sport by allowing broadcasters to talk openly about point spreads. We’re obviously going to make sure we protect the integrity of the game, but it’s foolish not to think the NFL hasn’t made a significant amount of revenue off its television product because there are wagers on the games,” Luck said.