PALO ALTO, Calif. -- A pile of freshly typed paychecks sat on the front desk. A plastic bag full of homemade chocolate chip cookies and a wall covered with holiday cards gave the office a festive atmosphere.

But those trappings did little to dispel the gloom in the offices of the American Basketball League a few days before Christmas.The nine-team ABL folded Tuesday, midway through its third season, unable to compete with the rival WNBA -- which is backed by the money and marketing muscle of the NBA.

As the league filed for bankruptcy protection, ABL franchises canceled their games and began drawing up plans for paying players and employees and refunding ticket holders' money.

"I can definitely feel for people finding out they just lost a job, because that's obviously what happened," Nashville guard Michelle Marciniak said. "We don't have practice. We don't have a game on Christmas Day. I have a calendar filled up 'til the spring. Now there's nothing."

The ABL had teams in Chicago; Columbus, Ohio; Denver; Hartford, Conn.; Nashville, Tenn.; Philadelphia; San Jose; Seattle; and Portland, Ore.

"At this point, the league is out of money," league co-founder and CEO Gary Cavalli said. "This is a sad day for our fans, employees, players and coaches, and for women's basketball in general."

Cavalli said the ABL was unable to get the necessary TV exposure and sponsorship to survive.

"I am shocked. I never saw it coming," New England guard Jennifer Rizzotti said. "I am thankful for all of the loyal fans throughout this trying season. It's a shame this happened. I'm still trying to figure it out."

The ABL was launched in 1996, riding the enthusiasm of the gold medal-winning U.S. women's team at the Atlanta Olympics and the boom in women's college basketball. When the WNBA began play the following year, however, many began to wonder if two women's leagues could survive.

This year, the ABL hoped to take advantage of the NBA lockout, which has forced cancellation of at least half the season.

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"I'm a little surprised about the timing of it," said forward Katie Smith of the Columbus Quest, which won the league's two championships. She plans to play with a national team this summer and then look into joining the WNBA.

Players, some of whom chose the ABL because it offered higher salaries than the WNBA, were informed of the shutdown when they called the league office.

"We have closed our entire operation," a recorded message said. "The league is currently working on a plan to ensure that you'll be paid as much of your salary as possible for the month of December. This plan is subject to court approval."

The WNBA, which has 10 teams in cities that also have NBA franchises, plays from June to August. The ABL played in the fall and winter.

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