Josh Gross conducted an interesting interview with ProElite's CEO, Chuck Champion, following the announcement of the asset sale to Strikeforce. To wit:
SI.com: OK, what is going to happen with ProElite as a company now?
Champion: ProElite as a company will focus on those assets that are making money, which is principally King of the Cage. 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. And we have an opportunity to concentrate on King of the Cage and other assets. And resolve the issues that are still outstanding with those. So it also gives the fighter an opportunity and a venue that we think is good for them. It was important piece of the puzzle for us.
SI.com: Could you discuss the deal with CBS?
Champion: Simply that we've resolved all of the differences between us and they retired all the debt that existed between us. And, in essence, they will remain shareholders on a go-forward basis as common shareholders with no particular extra rights with their holdings. They will not have board representation. They will not have super-majority rights. They won't have any type of control rights over the company.
A separate article highlights what ProElite is left with besides King of the Cage:
Following the sale, ProElite will continue to own the EliteXC brand. Among ProElite’s other significant assets are a host of international MMA brands such as Spirit MC, an extensive library of MMA events, and its community-driven interactive broadband entertainment website. The company also is co-producing a new reality show with Mark Burnett, the visionary force behind reality TV in the United States.
The Josh Gross interview contains a lot of information that helps in better understanding the ramifications of the deals with Strikeforce and CBS/Showtime. ProElite isn't dead, per se. What is left is an extensively modified organization - much smaller in scope. Champion believes the significant goals of eliminating debt and freeing the company from litigation have been achieved. Details regarding the transferred fighter contracts should emerge in the coming days as part of ProElite's SEC required 8-K filings.
Something tells me that there are more twists and turns to come. At first glance, the moving parts involved in these deals appear to be many. Will the fighter contracts be worked out efficiently? How will the connections established through these various agreements play out? Those are only a few of the questions that come to mind.