The Alliance of American Football’s original main investor Reggie Fowler was arrested on Tuesday with charges of bank fraud and operating an unlicensed money-transmitting business. If convicted, Fowler reportedly faces up to 70 years in prison.
A former minority stakeholder in the Minnesota Vikings, Fowler reportedly agreed to fund the start-up American Football league with up to $170m (€152m) as the primary investor. He invested around $25m but funds dried up around Christmas time, which in turn led to co-founder Charlie Ebersol agreeing to a deal with Carolina Hurricanes owner Tom Dundon to take over the league.
Dundon agreed to invest $250m initially but pulled the plug on the league after losing approximately $70m in eight weeks. The Alliance has now ceased business operations after filing for Chapter 7 bankruptcy. Creditors have been told they will not receive any money.