HDNet Purchase of IFL Assets Possible

September 26, 2008

According to a recent filing by the IFL, HDNet LLC has offered to purchase the assets of the IFL for $650,000. The deal is pursuant to agreement from IFL shareholders on the deal and no further higher bids being placed.

The main item of value from the deal would be the video library, which clocks in at around 400 hours of various footage. The library would bolster the MMA offerings available on HDNet. There is an old business meme that states that content is king and that is what is driving this purchase. While the library isn’t first run material, it also doesn’t have the costs associated with first run or live material either (like the high cost of HD filming, salaries, union rules, satellite time, etc.).

The IFL does still have TV deals in place with FSN and a slew of international contracts, but with HDNet wanting the library for content for its own channel, it is doubtful anything will be done with these existing deals if the sale goes through.

As detailed in earlier financial filings, one of the remaining liabilities on the books for the IFL are the contracts that some of the coaches have with the fight group. If these contracts are assumed, HDNet has a range of properties (Inside MMA, color commentary on HDNet fight cards) through which to employ the coaches to receive some value for their money.

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