CBS/Showtime may already have control over ProElite's assets

by nidge on Oct 22, 2008 11:10 AM EDT

Saturday Night Fights may continue on CBS without influence from the ProElite management. It looks like CBS/Showtime can take complete control of the company due to a breach in the terms of ProElite’s loans.

Basically ProElite has nothing left CBS/Showtime now owns it all

Mmapayout broke this story, it’s bassed on a submission made by ProElite to the Securities and Exchange Commission

ProElite Violates Loan Terms, CBS/Showtime May Seek Remedy : MMAPayout.com: The Business of MMA

Summary of PROELITE, INC. - Yahoo! Finance

This may well not be the end of things for the EliteXC brand; however, Skalla and the jackasses that ran the company into the ground will surely be out.

“Standgate” may not be the reason CBS/Showtime pulled out of negotiations, they can pick up the organisation for nothing.

The FanPosts are solely the subjective opinions of Bloody Elbow readers and do not necessarily reflect the views of Bloody Elbow editors or staff.

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The only problem with your thinking is that all the other investers would want their money back as well. I believe only 6.3 mill was what Showtime and CBS were owed. I am sure there will be some legal fights going on here.

by MMASuPreMaCy on Oct 22, 2008 3:03 PM EDT reply actions

The thing is that equity investors (common stock holders) are last in line when a business goes under. While Showtime held stock in the company, they also extended credit to ProElite. So I think they would have to be considered creditors to some extent. I don’t know where else they obtained credit from or if Showtime helped them obtain credit from other sources. It’s hard to say who and how much each entity is entitled too. There is, or should be, a pecking order. I fear that it may end up to be a legal mess that will take some time to straighten out, so the fighters will probably want to get free of their contracts if at all possible.

by Cannon Jacques on Oct 22, 2008 5:58 PM EDT up reply actions

The loans Showtime made to ProElite were secured loans, they have first right to any assets because their money was secured with those assets as collateral. Basically Showtime is repossessing anything ProElite has of value to cover the cost of those unpaid loans. It actually is similar to what Zuffa did with Xyience when they made them a guaranteed loan and then basically took over their assets when Xyience failed(although it seemed a lot more was going on behind the scenes with Xyience). Showtime is exerting it’s legal options to protect it’s investment and to try and recoop as much money as possible from the black hole that remains of ProElite, the other investors and creditors will just have to wait in line.

by who me on Oct 22, 2008 7:07 PM EDT up reply actions

Thanks for the insight. It was kind of my impression that Showtime was first in line. I’d have to think that this thing could get messy. I have no idea how their assets are valued, so who really knows if there will be anything left after Showtime gets their take? I would think that Showtime would want to offload all those regional promotions that ProElite accumulated but were unable to turn into revenue.

by Cannon Jacques on Oct 22, 2008 7:48 PM EDT up reply actions

If 6.3 million was what ProElite owed Showtime then that is all that Showtime will be able to secure this way, thing is did ProElite have more than 6.3 million in assets?

by who me on Oct 22, 2008 7:09 PM EDT up reply actions

You may be correct.

However, if CBS had bought out ProElite, as they originally proposed to do, they presumably would have taken on board any debt.

Now they are in the position to take over the organisation without paying a penny.

Whether it is worth their while to do so is anyone’s guess, but it is a distinct possibility.

by nidge on Oct 22, 2008 4:12 PM EDT reply actions

Assets:

1 cage, slightly used.
47 cases of unsold CD’s by "Rapper whatever the fuck your name is Shaw Jr."
8 towels with peek holes.
1 copy of “How to Win friends and Influence People”, new in wrapper.
Season 2 of Dexter.
10,000 World Heavyweight Champion Kimbo Slice bobbleheads.
1 World’s Best Dad coffee mug
Lifetime membership to “Reality Kings” fine family of websites.

http://eliotmarshall.com/

by BJJDenver on Oct 22, 2008 4:48 PM EDT reply actions