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McMahon Agrees to Cover Legal Costs in Luck Lawsuit

In a document filed on Tuesday, McMahon agreed to personally pay for the legal fees in the lawsuit the former XFL Commissioner and CEO Oliver Luck filed for wrongful termination.

Unlike the rest of the contracts that were terminated when the league shut down, Luck was fired on April 9th. Directly following the termination, a lawsuit claiming that he was due his entire $23.8 million contract was filed.

There was a clause in the contract between McMahon and Luck that stipulated Luck would receive his entire salary and bonus money if he was fired without cause.

In June, the court granted a stay in the case, to last at least until October 31st, or 60 days after the Alpha bankruptcy sale had been finalized. Recently, the stay was lifted (effective date 10/31/2020), which allowed Alpha Entertainment to join the case as a defendant.

Luck also filed paperwork on October 20th to officially amend the filing to include Alpha.

The general feeling is that by terminating Luck prior to filing for bankruptcy, the $20-plus million contract would not become part of the case, as it would, in fact, diminish the value of the estate.

McMahon also feels that he had cause to fire Luck, as he claims in the countersuit, saying that Luck abandoned his post after the league hit pause in March and that he had wrongfully used a business communications device for personal reasons.

This matter is now effectively moving forward. And although the contract was with McMahon personally, because the work Luck did was for the league, the estate could lose everything if the court rules in his favor.

Meaning the unsecured creditors stand to recover a significant amount less, if Luck wins.

Along with the stipulation and settlement filed by McMahon, the document says that anything recovered by McMahon in his counter-claim, 67% would go to the estate. This means the creditors could get more than the previously proposed 10% of their initial claims in the case.

Content creator, that lives in Virginia Beach. Father of 3 amazing girls, lover of all things football. Trying to add my voice to the mix. #ForTheLoveOfFootball #SilenceIsNotAnOption

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