MMAWeekly Reports:

In a Securities and Exchange Commission filing released by ProElite, Inc. on Wednesday, the restructuring company disclosed it received $3 million for assets sold to Strikeforce. Those assets included the sale of 42 fighter contracts, a video library of 20 live events, and other assets not specified.

The company also disclosed it would receive a "contingent consideration" of a portion of licensing fees earned by the San Jose-based promotion’s new deal with Showtime Networks. Fees would be paid to ProElite until Feb. 28, 2012, and could be extended. The portion of the fee was not disclosed.

Strikeforce will assume "certain liabilities" of the assets purchased, likely the specific deals within fighter contracts purchased.

Pro Elite’s debt to CBS – the network was an investor in company and funded its last show – was eliminated as part of the agreement with Strikeforce. According to a report on SI.com, Strikeforce paid off all or a portion of the debt.

Here is MMAPayout's take on the filings:

Probably the most interesting part here is the cut that ProElite will receive from the licenses fees paid by Showtime to Strikeforce. This gives ProElite a passive stream of income that can help fund their other ventures, since it seems they are staying in the MMA game in some shape or fashion. For Strikforce’s sake, they should have negotiated a manageable percentage, one that one won’t mean the difference between profitability or not on their cards. Coker has a good financial head, so this figure should be something that can be worked around when putting the various cards together.

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This is likely in regards the usage of the ShoXC trademarks that ProElite holds. It is interesting that these items were licensed instead of sold outright. With ProElite moving forward as a going venture, they may seek to work with Showtime at some later point under the ShoXC brand. Showtime seems to be varying their ties to MMA, with the retained stake they have in ProElite, the deal with Strikeforce, and their deal to produce the Affliction PPV’s. If they look to expand the ShoXC series in the future beyond the capacity that Strikeforce can deliver, ProElite/KOTC may be an in-house option to do that with.

Chuck Champion's comments about the future of ProElite:

In an interview with SI.com, ProElite CEO Chuck Champion said the company would re-focus its efforts on its satellite brands – namely King of the Cage – which it purchased in September of 2007.

"ProElite as a company will focus on those assets that are making money, which is principally King of the Cage," said Champion. "There are a few other issues outstanding that will need to be resolved… but there is capital in the bank in order to be able to do that. So, we'll look for what we do next, now. But this basically takes the company and makes it debt free, dispute free, litigation free."