Stratus Media Group, which is a live entertainment company, announced today that it has finalized its acquisition of ProElite, assuming a ninety-five percent stake in the MMA promotion.
“This acquisition provides the resources and abilities ProElite needs in order to focus on strengthening and repositioning its world class MMA fighting platform in addition to the brand itself”
“This acquisition provides the resources and abilities ProElite needs in order to focus on strengthening and repositioning its world class MMA fighting platform in addition to the brand itself,” stated Paul Feller, President and CEO of Stratus. “Under the new SMDI Action Sports Vertical, ProElite is launching a series of MMA events that will bring a new vitality to the business of MMA and reestablish ProElite as a leading international MMA organization.”
Founded in 2006, and running its first show in February 2007, ProElite quickly became one of the most visible brands in mixed martial arts globally. ProElite holds the record for highest ratings of an MMA event on a network telecast. The company maintains its ownership stakes in South Korean-based Spirit MC and British based Cage Rage. ProElite’s event strategy will continue its focus in both domestic and international markets, welcoming fighters across all weight classes to prove themselves in the cage. Details of ProElite’s upcoming events schedule, fight card, and management team will soon be announced.
Payout Perspective:
Last we heard of ProElite, they were brought up as a potential (though not serious) bidder in acquiring Strikeforce. They also benefited from the Zuffa/Strikeforce purchase by being basically the only group left with relevant MMA footage that Zuffa does not yet own, for example some of Anderson Silva’s Cage Rage fights. They have had plans to start running MMA events again for about a year now, but nothing has materialized up to now.
It seems that ProElite could become another beneficiary after the Strikeforce/Zuffa purchase (see Bellator), as was predicted since the market is now luring investors to create viable options for MMA fans. In the latest rumor, MiddleEasy.com states that ProElite is preparing to jump back into the MMA market fairly soon, and possibly with a familiar MMA investor:
We will be talking to the new CEO of ProElite tomorrow, however it’s rumored that the primary investor of the now-defunct ‘Impact FC’ will financially team-up with ProElite and they have every intention to compete with the UFC once again.
‘they have every intention to compete with the UFC once again.’
“it’s rumored that the primary investor of the now-defunct ‘Impact FC’ will financially team-up with ProElite and they have every intention to compete with the UFC once again.”
The same Impact FC that never paid their fighters? What an investment that was… Every time that ProElite pops up in the news (which is like once or twice a year) I just roll my eyes. What a joke of a company.
I know what I’m talking about when I say this (insider’s perspective): this company had no idea how to run profitable MMA events, nor the wherewithal to build a roster of talent over the long term. Though SOMEONE will rise up / benefit from the Stirkeforce-Zuffa deal, it’s hard to believe that PE would rise from the dead. I believe they had their ‘dead cat bounce’ atleast 2 years ago…
I think buying this is a no brainer. Put on 6 shows and sell to the UFC for 4x’s what you paid.
What assets does ProElite even have? A tape library of Cage Rage and Rumble on the Rock events? Why would anyone buy this? I mean c’mon, it’s a tainted brand for crying out loud!
Machiel Van:
EliteXC was tainted, and it is a very risky investment for anyone. Having said that, it’s also probably not a reach to say that MMA fans are probably more familiar with ProElite (EliteXC) than any other non-Zuffa promotion right now (sadly). That may change very soon depending on what Showtime and Spike TV does. I think trying to position yourself to land into a TV deal would be huge. It will definitely be interesting.
Most fans are probably unaware of ProElite to begin with, but for the few that do know also know that the company was behind EliteXC and responsible for all of its shortcomings, so by association the ProElite brand is tainted. For MMA fans who have no knowledge of ProElite, the brand has no name value at all, so why would anyone want it? So for those in the know, the brand is tainted, and for those who don’t know, “what the heck is ProElite? A clothing company?” I just don’t see why Stratus wanted majority control of a company with no real value AND a history of failure/losing money. I’d just like to know some possible reasons why someone would look at ProElite, and say “yes, I want to buy this because ___________.” Do they still run/own ANY promotions? Does their library include footage of a lot of fighters who are presently free agents? I see a fight promotion company with no promotion, no fighters under contract, and who (tell me if I’m wrong) hasn’t promoted an event in about 34 months. What does ProElite even consist of?
“Having said that, it’s also probably not a reach to say that MMA fans are probably more familiar with ProElite (EliteXC) than any other non-Zuffa promotion right now (sadly).”
Bellator FC.
Machiel Van:
I don’t think Bellator is known at all outside of the hardcore fans, a small subset of all MMA fans. Of course, this can all change if they move to Spike. Whoever get’s the Spike slot will be in a great position, same may be the case for Showtime slot depending on what happens with the UFC.
I have a great interview from ME that I will post up soon that may answer your questions.