Champion Speaks
August 19, 2008
Steve Sievert of MMAJunkie spoke with ProElite Chairman Charles Champion about the company’s recent moves. Sievert’s article cover a lot of the same material seen here on MMAPayout.com , but a couple of pieces of information were of note:
Recent additions to the company’s board of directors, including Robert Brierley and Edward Corey, bolster ProElite’s leadership, specifically in the area of equity fundraising. ProElite will have to raise additional capital to continue to fund operations, which will be challenging given the current environment on Wall Street. The company also has hired an investment bank in preparation of a deal.
In addition, ProElite has brought in Monitor, a highly regarded international consulting firm co-founded by a Harvard Business School professor. Monitor is a firm that specializes in shaping companies in transition to be more competitive in the marketplace.
ProElite’s filing of financial information for public consumption has always been something of a head scratcher. The company is a Pink Sheet listing, meaning in essence, that they aren’t required to do so, they don’t have to file this info but they do. They are paying in the mid six figures to keep their audits up and financial reporting up, so their seems to have been some ulterior motive. The mentioning of Robert Brierley and Edward Corey as possible architects of future equity raises further bolsters this contention. For an extended time, ProElite has been kept afloat through loans and Equity stakes sold to Showtime/CBS. That is putting all their eggs in one basket so to speak, the moves mentioned seem to indicate they may be looking to line up alternative sources of financing in order to keep the company running. Speaking with those familiar with the financial markets, it would still be considered an uphill battle to get outside financing at this point.
“I would expect that you would see that in the next 12 months,” said Champion, who was formerly CEO of Youbet.com and held executive positions in newspaper publishing, including stints at a Knight Ridder subsidiary and the Chicago Sun-Times. “Our events are already starting to meet that criteria. We have some pretty exciting (financial) models and, I think over the next 12 months, you will see us become profitable.”
Champion has to be predicating his “exciting models” on knocking out a home run on 10/4 and then setting up a successful PPV in the first quarter of 2009. Monetizing the promotion through PPV shows has been a point that MMAPayout.com has emphasized in the past as being key for the promotion’s success. MMAPayout.com was the first reporter that put forth the PPV question to former Chairman Doug DLuca at the 7/26 conference call, giving some illumination to the company’s plans. ProElite has several large hurdles ahead if they are to remain viable, with the 10/4 CBS show looming the biggest if they are to go forward.
