@Option_Zero @BrandonThurston "As previously announced, in April 2018, the Company entered into transactions with Alpha Entertainment, LLC (“Alpha”), an entity controlled by Vincent K. McMahon, granting Alpha rights to launch a professional football league under the name “XFL”."
@Option_Zero @BrandonThurston "Under these agreements, WWE received, among other things, an equity interest in Alpha without payment by, or other financial obligation on the part of, WWE. The investment will be accounted for under the equity method of accounting."
@Option_Zero @BrandonThurston "WWE’s equity interest in the net assets of Alpha at the transaction closing date on April 3, 2018 was insignificant. After Alpha’s formation, we recorded our proportionate share of Alpha’s reported net losses which exceeded the carrying amount of the investment..."
@Option_Zero @BrandonThurston "...and reduced the investment value to zero as of June 30, 2018. Subsequent losses after that date are not required or provided for, after which we will resume accounting for the investment under the equity method if Alpha subsequently has net income..."
@Option_Zero @BrandonThurston "... and our share of that net income exceeds the share of net losses we did not recognize during the period the equity method of accounting was suspended. In addition, WWE entered into a support services agreement to provide Alpha with certain administrative support services"
@Option_Zero @BrandonThurston "...with such services billed to Alpha on a cost-plus margin basis. During the years ended December 31, 2019 and 2018, the Company billed Alpha $3,250 and $1,305, respectively, for services rendered under the support services agreement."
@Option_Zero @BrandonThurston " As of December 31, 2019 and 2018, the Company had $236,000 and $474,000, respectively, of current receivables for amounts billed to Alpha."
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