The XFL’s return in 2023 had some positive moments and some decent signs of growth, however, it all came at a shocking cost for Hollywood superstar Dwayne Johnson and other investors in the football league.
After nearly two decades away, following its inaugural season, the XFL was one of the few leagues that suffered the most when the COVID-19 pandemic began early in 2020. The pandemic came in the early days of the league’s return season and undercut any chances it had for success in its second attempt at being a successful spring professional football league.
Related: XFL TV ratings and attendance 2023 – XFL championship ratings 2024 outlook
The unfortunate timing for what was already a risky venture led the XFL’s owners to file for bankruptcy and eventually sell the league to movie star Dwayne “The Rock” Johnson, his ex-wife Dany Garcia and their partners at RedBird Capital for $23.5 million in 2021. It wasn’t long before the duo and their fellow investors revealed plans for a return in 2023.
While many events for the XFL featured mostly empty arenas, they were able to take advantage of a football-desperate market in St. Louis and showed some progress in their ratings and social media numbers as the season progressed. Plus, several of their top players earned contracts with NFL teams for the 2023 season.
XFL reportedly makes $20 million annually in broadcast deal with ESPN
However, spring professional football has always been a difficult nut to crack and has led to many failed ventures. Including the first two iterations of the XFL and the original version of the USFL. And it seems that not much has changed despite the United States having a constant hunger for high-level football.
On Saturday, Forbes reported that the XFL’s ownership consortium suffered $60 million in operating losses over the course of the 2023 season. The massive losses have led to a string of recent job cuts and plan to make many positions seasonal going forward.
Yet, the huge losses are helped by the fact that ESPN reportedly pays the league $20 million a year to broadcast games through March, April, and May. Furthermore, those close to the league still feel confident about the long-term upside and told the outlet “Next season, the league projects $100 million in revenue.” That amount would include their annual fee from ESPN.
It remains to be seen if the XFL will be able to reach those projections, but after one season the prospects are not too promising for the league.