The Downfall of the Arena Football League (AFL)

By Jason Bolton July 29, 2024 03:02

Photo by Jim Franco/Times Union

The Arena Football League, or the AFL for short, was created in 1987 to offer an alternate game to outside American football, as observed by the NFL. The promise was a high-octane, offensive version of the game played on an undersized indoor field with only eight men per team, logging it out for quality and money. The AFL became popular in its first few seasons, drawing celebrity investors, including KISS band members Gene Simmons and Paul Stanley, who purchased a team based out of Los Angeles.

The league grew a lot in the 1990s and into the early 2000s when there were 19 teams at its peak, which was less robust of an ownership or TV contract situation. That was good enough to keep the TV at bay and allow the fad for arena football in Detroit to hold on longer than other towns to temporarily thrive, with an average of over 14,000 fans per game-attending Detroit Drive games during a six-season span. The AFL was also a place where the NFL busts who couldn't hack it could make themselves into legends, as Super Bowl-winning QB Kurt Warner played in two seasons of Arena Football before becoming an underdog superstar.

The Decline and Struggles

The league suffered badly during the recession, which hit in 2008-09. Player salaries collapsed, and fans and corporate sponsors mass abandoned the league. A year later, the league declared bankruptcy under and canceled its entire 2009 campaign in late September of that season.

The AFL returned to a single-entity ownership model in 2010, where the league-owned all team and player contracts. That was a major shift from the franchise model previously, wherein teams basically ran each one individually as their own business.

Difficult to Get the Perfect Business Model

The costs associated with running the games, including venue rentals, player salaries, and operational expenses, often outstripped the revenues from ticket sales, merchandise, and limited broadcast deals. As the league attempted to navigate these financial hurdles, the broader economic landscape also presented challenges, further complicating any efforts toward stability and growth.

Economic Struggles

Across the board, multiple teams in the 2024 season were not able to pay their bills, nor did support from a high-end city save them; meanwhile, the Iowa Rampage announced that they are closing up shop and won't continue existing entirely due to poor behavior by league owners. The league's commissioner went literally missing, too, as in not there this week but no reason given, and players were unpaid.

The Final Collapse

The struggles continued into the next decade, with the AFL facing problems such as the absence of consistent broadcast deals and difficulties in finding a sustainable business model. The situation reached a breaking point in 2019 when the AFL filed for Chapter 7 bankruptcy liquidation, signaling the end of any hope for a revival. This decision came after the league suspended business operations and failed to reorganize successfully. The financial difficulties were stark, with the league facing expected losses of nearly $12 million for 2019 after revenues plummeted.

Moving Forward

In the future, the AFL may serve as a cautionary tale for indoor football leagues and other sports looking to make it work at reduced levels of play. That said, the challenge will be to avoid following in the AFL's footsteps by ensuring they are better funded and have a business model that can support itself within such an overpopulated market.

The AFL's impact on the game and entertainment should not be overlooked, as it provided a platform for players to showcase their talents and for fans to enjoy a different facet of football. Its story is a testament to the challenges of breaking into and sustaining success in the competitive world of professional sports. As future leagues look to enter the arena, they would do well to heed the lessons of the AFL's ambitious but ultimately unsuccessful journey.