Pro Elite

Strikeforce Acquires ProElite Assets; Lands Deal With Showtime

It’s been a busy past few weeks for Scott Coker and his fledgling Strikeforce brand. Once thought to have been just a small success story in the San Jose area, the promotion seems to be on the fast track to becoming the legitimate number-two MMA organization in North America after securing a deal to purchase a limited number of assets from ProElite, the parent company of EliteXC.

Under the terms of the deal announced this afternoon, Strikeforce will acquire a select number of fighters contracts, along with the ability to sign additional fighters to Strikeforce deals, as well as a video library of past EliteXC and ShoXC events.

“This is a tremendous development that will bolster the Strikeforce roster and allow us to produce even more competitive matchups between top fighters,” Coker said in a press release today. “Some of these athletes have been on the sidelines for a while now and are eagerly waiting to return to competition. We look forward to providing them with the opportunity to do so in the next few months.”

 

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Afromowitz Denies Completion of ProElite Sale to Strikeforce

Various reports have surfaced over the past 24 hours stating that Strikeforce set to purchase the remaining assets of the ProElite brand and that a formal announcement from the organization is expected by the end of the week, and could even happen as soon as tomorrow.

However Strikeforce VP Mike Afromowitz this evening revealed to MMA Weekly’s “MMA Insider Blog” that the reports circulating are false and that the potential sale is not finished:

Strikeforce executive Mike Afromowitz confirmed to MMAInsider that negotiations were progressing, but the deal was not done.

“That’s incorrect,” he said. “Any reports of a done deal are a complete fantasy.”

Afromowitz said the deal with Pro Elite was far more complex than reports had stated.

“It’s complicated, and that’s why I don’t want to speculate,” he continued. “If anything is done, it will be very technical. It’s not as straightforward as you think.”

Terry Trebilcock’s King of the Cage promotion and a small group of investors were thought to have been the leading candidates to buy the currently inactive promotion, but these new reports are suggesting that Scott Coker is now the likely buyer.

In reality, he’s probably the best choice. Many of the fighters enjoyed the freedom that their non-exclusive contracts with EliteXC provided and Strikeforce provides the exact same thing under better management. Rumor has it that most, if not all, of the fighter contracts are non-transferable, meaning that some fighters may opt to sign elsewhere. Aren’t Jake Shields and Robbie Lawler eventually going to end up with the UFC anyway though?

Afternoon Notes: Silva Fires Back at CSAC, EliteXC Show Being Planned & More

- Former EliteXC heavyweight champion Antonio Silva has filed a civil action suit against the California State Athletic Commission in an attempt to try to fight his suspension stemming from a positive steroids test last year. According to Sherdog.com, Silva is looking for a ruling that will temporarily release him from his suspension and potentially grant him another hearing with CSAC officials.

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Andy Geer: ProElite Never Completed Cage Rage Purchase

In an interesting twist in the seemingly never-ending ProElite saga, former Cage Rage promoter Andy Geer has revealed that ProElite never actually completed the purchase of Cage Rage when they acquired the organization last summer, resulting in Geer now attempting to buy back the promotion he once called his own.

From MMA Weekly:

The plot thickens in the ProElite debacle with a new slant on the situation not yet revealed… a conversation with Andy Geer following the inaugural Ultimate Challenge show this past weekend revealed that although Cage Rage had been purchased by ProElite, they hadn’t actually paid for it before going under.

Geer explains the situation, “To all intents and purposes, ProElite had entered into an agreement to purchase Cage Rage. A deal was struck with a deposit accepted. Then they had a cut-off date to make a balloon payment; they never completed the purchase.”

If Geer’s comments are valid, there remains the possibility that ProElite never completed purchasing King of the Cage either. However this new development brings a question to my mind: If ProElite technically never owned Cage Rage or possibly King of the Cage, why are Geer and Terry Trebilcock going through so much trouble in trying to re-acquire their promotions. Don’t they still technically own them?

Agents Attempting to Block Showtime Auction

Just like ProElite itself, multiple mixed martial arts agents are coming together to attempt to block a public auction announced for November 17 in which Showtime Networks will attempt to sell off the remaining assets of ProElite and everything under its banner in order to repay two defaulted promissory notes for $4 million that Showtime lent to ProElite over the last year.

Ken Pavia, who represents a slew of notable names in the world of MMA, has teamed up with the likes of Ed Soares, Monte Cox, and Cesar Gracie and issued a formal press release indicating that they are all prepared to challenge whoever purchases the contracts of their fighters in court.

The complete release is after the jump.

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ProElite Attempting to Block Public Auction

ProElite will attempt to block a public auction announced for November 17 in which Showtime Network will attempt to sell off the remaining assets off the company in order to repay two defaulted promissory notes for $4 million that Showtime lent to ProElite over the last year.

According to a Securities and Exchange Commission filing from November 6, ProElite “plans to take all appropriate measures to prevent the sale from occurring. Such measures may include raising additional financing, filing a lawsuit enjoining the sale, filing a bankruptcy petition or negotiating a settlement with Showtime.” The filing also went on to say that ProElite was unsure whether any of the methods would prove successful.

The planned public auction will see both the EliteXC and King of the Cage brands up for sale as well as the contracts of such fighters as Kimbo Slice, Gina Carano, Jake Shields, Robbie Lawler, and Frank Shamrock among others.

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Showtime Puts ProElite Up for Public Sale

According to paperwork filed with the Securities and Exchange Commission this afternoon, Showtime Network intends to sell the remaining assets under the ProElite banner at a public auction in Los Angeles, California on November 17.

The filing comes just days after ProElite sent out notices to the managers of fighters currently under contract with the organization, stating that, contrary to popular belief, they were not filing for bankruptcy and were merely scaling down their staff in order to cut financial losses that would allow them to begin promoting mixed martial arts events once again early next year.

The public auction will see both the EliteXC and King of the Cage brands up for sale as well as the contracts of such fighters as Kimbo Slice, Gina Carano, Jake Shields, Robbie Lawler, and Frank Shamrock among others.

The complete notice of public sale can be seen after the jump.

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ProElite, EliteXC Respond to Breach of Contract Notices

After several fighters under their stable filed breach of contract notices following its demise late last month, EliteXC and its parent company, ProElite Inc., has given notice to the managers and agents of some of their biggest stars that they intend to promote events once again starting in early 2009.

The managers of notable fighters such as Jake Shields, Nick Diaz, and Robbie Lawler all filed for breach of contract after ProElite announced its intention to cease operations in October, giving the once promising organization 30 days to pay said fighters and fulfill promotional obligations or watch them become free agents.

However a notice handed out by ProElite over the weekend states that contrary to popular belief, the company is not filing for bankruptcy and is merely scaling down their staff in order to cut financial losses.

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Cage Rage: “It’s Business as Usual”

Just like his King of the Cage counterparts under the former umbrella of ProElite, Cage Rage promoter Dave O’Donnell is determined to continue to run his ship as if nothing happened to his organization’s parent company, starting with Cage Rage’s “Contenders 11” show on November 1.

From MMA Weekly:

Dave O’Donnell, the one constant since its inception, told MMAWeekly.com of the demise of the brand’s parent company, “For Cage Rage it is business as usual. The next show is Contenders. It’s still going ahead. I can tell you that much.”

An interesting statement, and one that begs the question: so if ProElite pulls out of MMA with EliteXC, does that mean they are going to sell their umbrella brands back to their previous owners? “Put it this way, one way or another we will still keep going, maybe it’s eventually under another name, maybe it’s not, but we will still be here, that’s all I can say,” added O’Donnell.

The thought of continuing to promote under a different entity has become a strong possibility with multiple suitors likely planning on bidding for the ProElite brand names once the company officially goes under by the end of the week. Then again, ProElite could easily sell back the naming rights to both Cage Rage and KOTC seeing that potential buyers likely won’t hold any interest in them at the moment.

KOTC Intends to Continue to Operate Normally

In the wake of the collapse of ProElite, King of the Cage has issued an official press release regarding the matter, stating that they intend to continue to operate as normal as possible:

King of the Cage, Inc. (“KOTC”) is fully aware of the reports surrounding the financial difficulties of ProElite, Inc. (“PE”) and the reports that PE has filed or may soon file a bankruptcy case. KOTC is currently reviewing and investigating the situation and has determined that no bankruptcy case has yet been filed by PE .

Although KOTC is a wholly owned subsidiary of PE, it has maintained its own independent operational structure since its acquisition by PE. While there may be some short term impact on KOTC’s operations, KOTC intends to fulfill all of its existing obligations and to conduct all of its scheduled events. KOTC further intends to resume normal business operations as quickly as possible and to continue to grow its brand as it has for the past 10 years.

We will provide further updates as more information becomes available.