Second Opinion: Englebrecht on IFL & ProElite 10-Ks

April 26, 2008

Roy Englebrecht is the owner of Roy Englebrecht Promotions, California’s third largest boxing promotions company. Oscar De La Hoya purchased the company in December of 2001 and Golden Boy Promotions was formed, with Roy serving as COO for the first three years. At the end of 2004 Roy Englebrecht Promotions was again reestablished, with Oscar De La Hoya now as a minority partner. Roy offered the following Second Opinion on the IFL and ProElite’s recent 10-K filings.

I have been reading the stories about the awful 10-K annual reports for IFL and ProElite, and I just have to comment.

I want you to know I pray for humility every day, and I don’t want to sound like I am tooting my own horn, but what are these guys doing in the fight business in the first place if they don’t know how to be profitable!

According to Jay Larkin of the IFL, and I thought Jay’s leadership and creativity at Showtime boxing was as good as anyone in the sport, but he says 20 MMA groups are all struggling. Well, I’ll promote eight to 10 pro mma clubs shows in 2008, and I won’t lose money on any of them!

In 2007, my fight business did $1.1 million in gross revenue, and I read that the IFL only did $5.7 million in gross revenue and ProElite did only $5.3 million in gross revenue… mean that my company, which is all of two people, me and my matchmaker Arnold Berber, did over a million in revenue and we turned a profit, and the IFL and ProElite with their vast staffs and network partners did just awful!! With their staffs and resources they should have made $35 million, not lost $35 million!!

While I respect Dana White for the way he has grown the UFC, and though I don’t agree with some of his statements in the past, I give him my top kudos for his statement in the Forbes UFC article, where he was quoted in regards to some comments about competitors like ProElite on CBS and HDNet Fights, that “CBS doesn’t know the fight business, and Mark Cuban doesn’t know anything about the fight business, either.”

He hit the nail on the head…..these so called “fight promotions companies” don’t know the fight business. Their executives can negotiate nice fighter agreements, and secure great site fees with venues and casinos, but they have never “promoted a show” never rented a venue, created the marketing, had to sell all the tickets, hire an event staff, made sure towels, water and ice were in the dressing rooms, and had to stay within a show budget. These companies aren’t fight promoters, they are syndicators.

My MMA Fist Series will promote four hotel ballroom shows and fill them with 1,250 young fans. We’ll do two SummerFist Fair shows in Fresno and Orange County, free to fair goers, and I will do one SummerFist show at a minor league baseball stadium, and every one will turn a profit!

I have lived by a credo that I came up with 20 years ago….I give my fans great entertainment, at the right price, in a clean environment, and say thank you and mean it! Because I am anal about doing all four points all the time, my fans come back!

I’m afraid some of those “struggling mma groups” are missing one or two of the points that I preach!

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