EliteXC in financial trouble/Showtime takeover? [merged]

speeds · Sep 18, 2008

http://www.sherdog.com/news/news/showtime-enters-talks-to-purchase-pro-elite-14454

Showtime Networks filed public notice with the U.S. Securities and Exchange Commission Thursday announcing its intention to enter preliminary negotiations for the purchase of Pro Elite Inc.

Showtime, a subsidiary of the parent conglomerate CBS Corporation, already enjoys broadcasting deals with the Los Angeles-based company on both its premium cable channel and CBS. Showtime also has a 20% ownership stake in Pro Elite.

The potential acquisition could not come at a more opportune time for the fledging company, as Pro Elite faces a $55 million deficit accrued during its two years of operation.

Founded in 2006, Pro Elite promoted its first EliteXC event in February 2007. Under its EliteXC and ShoXC brands, it has fired off 15 events to date.

Over the last 24 months, Pro Elite has also acquired the King of the Cage, Icon Sport, Rumble on the Rock, and Cage Rage brands, and promoted numerous events under those names.

Chris Deblasio, Director for Sports Communication at Showtime, had no comment on the potential sale.

Pro Elite reps also refrained from comment.

The third edition of EliteXC’s “Saturday Night Fights” will broadcast on Oct. 4 on CBS, featuring monster attractions Kevin "Kimbo Slice" Ferguson and Gina Carano.
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Monster? But anyways, this is an interesting development.

Celtic Fan · Sep 18, 2008

Re: Showtime trying to purchase ProElite

thus ends the CBS/UFC pairing IMO.. but will CBS get off it's ass and promote the fights??

DennisRodman · Sep 18, 2008

EliteXC's financial situation

First to explain, Pro Elite is EliteXC's parent company.

Pro Elite filed its quarterly report, and it is not pretty. There is a ton of information in the report, and I haven't read the entire thing, but here are the key issues.

They are actively seeking financing: The only word that can really describe their financial situation is "desparate." They need $3 million in financing, and that is just to get to the end of the year. Investors are starting to realize after the failure of the IFL that investing in MMA can be disastrous.

They have lost unbelievable amounts of money: Over a period of 6 months they lost nearly $25 million. In the quarter leading up to June 30, 2008, they lost $18 million. This was the quarter with their big show on CBS.

CBS is barely paying them anything: CBS and Showtime paid them $900,000 for their show in May, and they had to pay $500,000 in production costs to get it. This is cheap programming for CBS, they are not really all that invested in it.
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http://www.bloodyelbow.com/2008/8/20/597392/pro-elite-s-10q-filing

speeds · Sep 19, 2008

Kind of goes to show that even though Dana White talks a lot of shit, seeing companies like the IFL, ProElite, and Affliction running into serious financial problems trying to keep up with the UFC more or less confirms that Dana does know more about the business than people give him credit for. He sees all of this stuff coming.

Celtic Fan · Sep 20, 2008

indeed he does, because they went through the rough times.
eventually thought someone's going to get it right and all the Dana haters will jump all over him for being wrong.. it's just not going to happen now is all.

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EliteXC in financial trouble/Showtime takeover? [merged]

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EliteXC in financial trouble/Showtime takeover? [merged]

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