Yep, I thought the same thing from the very start. The goal of this venture was to sell it to the NFL from the get go. This wasn't intended to be a long term, self sustaining league.
We will see all or most of the cards during the Bankruptcy Proceedings. He can't dispose of the technology with a pending bankruptcy, but these are trade secrets we are talking about. Those can't simply be put back in the bag so to speak.
As for the second comment about Ebersol, I honestly think he was trying to build a startup to sell to the NFL and failed out the gate. Why the heck are you talking exit strategy from the get go? He had only one possible customer who could buy his goods and he is talking about getting out? That's a horrible business practice. I did a marketing analysis on Birmingham and Memphis yesterday and they are on par with Green Bay, Jacksonville and New Orleans as sports towns. But the difference between the NFL and an XFL/CFL/AAF is the brand power and external revenue. People buy the NFL because its the NFL and its brand power sells merchandising. The brand alone would sell t-shirts and hats in towns like Memphis and B-Ham. The tv revenue has always floated small market teams and probably always will. The larger market teams subsidize the smaller ones. The Big guys need the little guys to fill a schedule and get their own product out. In a minor league situation like this where there is no subsidizing from another established league there are very few alternative income sources. This is especially true when there are no large markets to draw income from. They were hanging their hats on sports gambling and felt that it would take about three years to establish a trusted enough brand to generate revenue from that source.