ProElite Promoter's License Suspended

November 6, 2008

Industry chatter over the past 24 hours indicated that the Promoter’s license of ProElite had been suspended by the California State Athletic Commission, but the reasoning was unclear. Some sources indicated “CSAC had suspended the promotional license of ProElite, based on the fact that ProElite had entered into unenforceable promotional agreements with its fighters by not following mandated CSAC rules and procedures.” Rumors are also indicating that ProElite is not willingly entering into the auction and may file bankruptcy to avoid the sale.

MMAPayout.com contacted the California State Athletic Commission to clear up the rumors as to the status of ProElite’s license. Armando Garcia issued the following statement to MMAPayout.com:

Pro Elite/Elite XC’s and King of the Cage’s licenses are suspended. They were suspended yesterday, when after looking into the matter carefully the exact situation was determined. However, it is not due to any type of contracts.

We do not have any Commission approved contracts for them. Any contracts that they may have with athletes are most probably personal services contracts in whatever state they were signed in. These types of contracts are not under the jurisdiction of the Commission because they were not approved by and or signed with the Commission. In fact, the Commission does not know anything about the contracts people are talking about. I would assume that to have these types of contracts declared void the party (ies) would need to file a civil lawsuit in the appropriate court.

The primary reason that Pro Elite/Elite XC’s and King of the Cage’s licenses have been placed on suspension is because of their financial states and the fact that Pro Elite, the owner of King of the Cage, has suspended operations and their tangible and intangible assets are being auctioned on November 17.

Hypothetically, if the auction goes through and one or more entities purchase either or both of these companies they would have to go through the licensing process. In other words, whatever it is that is being auctioned is not their California licenses.

We have had a great business relationship with the present owners and operators of these companies and we pray that this association continues in the future no matter what name, entity, operator, etc. will then own it.

Regards,

CALIFORNIA STATE ATHLETIC COMMISSION
Armando Garcia, Executive Officer

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