CEO Chuck Champion Discusses the Future of ProElite

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.
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Comments
Yeah, wouldn't want to give CBS any say
And let them fuck up this beautiful thing you’ve created.
Mine was first but yours kicks the shit out of it. Nice writeup.
by subo on Feb 6, 2009 4:09 PM EST reply actions 0 recs
Sorry, subo.
I didn’t see it, but I’ll check it out.
by Cannon Jacques on Feb 6, 2009 4:18 PM EST up reply actions 0 recs
It’s nothing – I wanted to hurry up and get it so I didn’t take the time like you did
by subo on Feb 6, 2009 4:28 PM EST up reply actions 0 recs
To be perfectly honest, Champion’s points are the way the company SHOULD go. Whether or not that carries out is to be determined. They should have started out fairly small and worked their way up much like Strikeforce. Found brand fighters who AREN’T Kimbo Slice. Instead, they went on a buying spree with Cage Rage, Spirit MC, King of the Cage, and stretched themselves thin.
It sounds like this is a re-organization of a corporation, cutting costs, selling off leaks, and getting back to basics to begin trying to build again. The only real problem I see is that the ProElite name is tarnished a bit.
Editor-in-chief of MMA-Analyst.com
by Leland Roling on Feb 6, 2009 4:26 PM EST reply actions 0 recs
EliteXC is
ProElite and KOTC is not.
by MMASuPreMaCy on Feb 6, 2009 4:45 PM EST up reply actions 0 recs
ProElite is very much tarnished. It’s associated with EliteXC almost every step of the way. KOTC definitely is not tarnished, but I’d be hesistant to believe that the promotion could one day come out of the small regional shows, but anything can happen.
Editor-in-chief of MMA-Analyst.com
by Leland Roling on Feb 6, 2009 5:01 PM EST up reply actions 0 recs
I wonder what this means for Cage Rage and the Hawaiian promotions?
by who me on Feb 6, 2009 5:43 PM EST up reply actions 0 recs
I think the Hawaiian promotions (Icon and Rumble on the Rock, I believe) are pretty well toast in no small part to the tax levied by the state government. ProElite could try to resurrect them but from a business perspective, it would be a bad idea.
Cage Rage could be resurrected like KOTC, but they don’t have the same “steady hand on the wheel”, so I would suggest their fate depends on whether or not ProElite is committed to finding a competent management team for the promotion.
"I'm AJB and I endorse this nut-puncher."
by AJB on Feb 6, 2009 6:22 PM EST up reply actions 0 recs
UFC moving into the UK regularly will put an end to Cage Rage I believe, but the UK does need some sort of regional presence, so maybe it’ll live once again.
Editor-in-chief of MMA-Analyst.com
by Leland Roling on Feb 6, 2009 11:00 PM EST up reply actions 0 recs
Lawler and Diaz Join Strikeforce
http://www.bloodyelbow.com/2009/2/6/751850/lawler-and-diaz-join-strik
Cox said contracts are transferable.
by MMASuPreMaCy on Feb 6, 2009 4:44 PM EST reply actions 0 recs
He said that Strikeforce’s position is they are – not that they actually are. And what’s he supposed to say?
by subo on Feb 6, 2009 4:51 PM EST up reply actions 0 recs
This is typical Monte Cox anyways, so I wouldn’t take it for what it is until we hear a matchup confirmed or Strikeforce actually state these are confirmed.
Editor-in-chief of MMA-Analyst.com
by Leland Roling on Feb 6, 2009 5:12 PM EST up reply actions 0 recs
What do you mean? I really don’t know much about the way he usually conducts business, so I’m curious.
"I see him beating Anderson Silva. I see him picking him apart. Him at a 131 years old...(trails off)." - Tito on Belfort at Affliction:DOR
by Rundownloser on Feb 6, 2009 5:19 PM EST up reply actions 0 recs
Claim something is true, and try to make it so after the fact, I believe.
"I'm AJB and I endorse this nut-puncher."
by AJB on Feb 6, 2009 6:23 PM EST up reply actions 0 recs
Oh, like he did with the whole M-1 Global thing in ’07? That makes sense. Thanks.
"I see him beating Anderson Silva. I see him picking him apart. Him at a 131 years old...(trails off)." - Tito on Belfort at Affliction:DOR
by Rundownloser on Feb 6, 2009 7:50 PM EST up reply actions 0 recs
Exactly
Editor-in-chief of MMA-Analyst.com
by Leland Roling on Feb 6, 2009 10:56 PM EST up reply actions 0 recs

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"I want to be on top of Fedor with Fedor on his back. I think I have the most chance to get a victory that way with Fedor. I truly truly believe in my heart that I can beat Fedor."
HT: fighthubtv.com, youtube.com/user/fighthub
Strikeforce on Showtime in May coverage](http://cdn3.sbnation.com/fan_shot_images/101962/2_small.jpg)


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HT: arlovski.com
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