Picture
 

ProElite Sold for $3 Million

Written by Tom Ngo
February 11th, 2009
Share on Facebook0Google+0Tweet about this on Twitter

Strikeforce Logo

Late Wednesday afternoon, the Securities and Exchange Commission filings released by ProElite, Inc. stated that they sold the majority of their assets to Strikeforce for $3 million. Last week’s sale included the purchase of 42 fighter contracts, a video library of 20 live events, and other unspecified assets.

As part of the agreement, ProElite will receive “contingent consideration” of the licensing fees earned with their new 16-event, 3-year agreement with Showtime. These fees would be paid to ProElite through February 28th, 2012, with the possibility of an extension.

Although the majority of ProElite was sold off, that does not mean that they are completely extinct. In a recent interview with SI.com, ProElite CEO Chuck Champion stated they would now focus their efforts on their smaller promotions, specifically King of the Cage.

“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.”

In a press release issued by ProElite, they expressed their relief that the lengthy process has finally concluded, with all sides leaving relatively satisfied.

“Getting to this point has been a long hard road and I’m grateful to Showtime, Strikeforce, the fighters and their managers for their patience and their perseverance,” said Champion. “The company has managed its way through a very difficult time and it has done so in a way that has built bridges rather than burn them. Everyone involved deserves a lot of credit for the outcome.”

Don’t forget to follow @5thRound on Twitter, Facebook and Google+!



COMMENTS