Tom Dundon will take over as chairman of the fledgling football league's board of directors after investing a quarter billion.
In an email, National Hockey League deputy commissioner Bill Daly said Dundon did not need permission from the National Hockey League to make this investment in another sports entity.
"Since the beginning, it has been crucial that the foundation of The Alliance be set with world-class partners and Tom Dundon represents just that", said Charlie Ebersol, co-founder and CEO, The Alliance.
Ebersol said Tuesday that reports the Alliance was short on cash and needed a bailout from Dundon in order to make payroll were untrue.More news: Southwest Airlines declares emergency due to broken planes
More news: Civilians rescued from last Islamic State holdout in Syria
More news: This May Be Our First Look at Samsung's Galaxy Fold
"The league has many years of cash if things don't go according to plan", Dundon said.
Dundon, 47, bought 52 percent of the Hurricanes a year ago for $420 million. I don't think about them as someone to buy a league. "The AAF is off to an exciting start as a league and was founded on some truly unique and groundbreaking concepts". The league said it drew more than 6 million viewers during its first weekend of games. "We're not going to take people's money", he said. "That describes Tom Dundon", he continued.
The AAF has eight teams and a 10-week regular season. Ratings, as expected, dipped when the league broadcast on cable channels to approximately 640,000 for the Week 1 Sunday night game on NFL Network.
The Salt Lake Stallions will make their home debut at Rice-Eccles Stadium this Saturday, but their fledgling league reportedly almost folded before the team even returned from its first road trip. "The idea of what the league is trying to do could create value to people, and people like watching it".