Another MMA Organization Reports Losses

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snakeplissken
4/22/08 12:05:45PM
Elite XC reported $27,584,500 in losses for 2007 in the company's annual report. The company has now lost $31,834,355 between its inception and 12/31.

In money spent, the company paid $3.25 million to fully acquire King of the Cage, $4.1 million for Mixed Martial Arts, Ltd., $400,000 for ownership of Future Fights (ICON in Hawaii), and $1 million for partial ownership of Entlian Corporation (Spirit MC in South Korea).

Elite XC is cutting back on expenses by reducing the number of staff, and did staff layoffs in January.


(Source: Wrestling Observer)

They also forgot the Acquisition of Cage Rage in the UK. Coupled with the fact they just signed Kimbo etc. to long term contracts could this mean problems for them longterm?

It seems Dana's statement about the 'latest three initials MMA company' is not far off the mark after all.

Source
SpiderSilva
4/22/08 12:17:32PM
hmmmmm who long will they last???
decken
4/22/08 1:08:18PM
Fighters and Fans have been very critical lately of how much the UFC pays their fighters. The criticism may be partly due. However, it seems like every week another mma organization is going out of business or losses money on an event. Has anyone thought that maybe the UFC pays there fighters what they can. It may not be what they deserve but it is what the UFC can afford to pay them (based on how much money that fighter makes for the UFC) and still have money left over to pay the bills and help the UFC grow and expand.

Fighters not only do not get paid but they loss their job when MMA organizations go out of business.
scoozna
4/22/08 1:09:36PM
Hopefully nobody but Dana is celebrating this news. I think it's a good thing to have the other leauges...even if they are sort of the minor-leagues of MMA in one way or another.
rabbit915
4/22/08 2:37:50PM
I have a feeling that EliteXC is in a in for a big pay day once their CBS shows get going, they dont have much to worry about.
Jesse_Canadian_MMA
4/22/08 2:48:14PM
I like elite xc and they put on decent shows, the last one had alot of good fights on it and turned me on to a couple names I hadn't heard of, so I hope they can figure it out and keep going.
Sir_Karl
4/22/08 3:33:58PM
No shock there....if they had a clue those could be profits...not losses.
tberg420
4/22/08 3:45:44PM

Posted by rabbit915

I have a feeling that EliteXC is in a in for a big pay day once their CBS shows get going, they dont have much to worry about.



They certainly won't make 31 million from that. I think that the first show will have huge ratings but will tank with the 2nd show. MMA organizations are turning up everywhere now-a-days. This is similar to the wrestling hay day in the 90's. Most people getting into the business don't have the proper skills or fundamental resources to be successful. I doubt that Elite XC will be around in 3 years.
Gladiator
4/22/08 4:18:55PM

Posted by scoozna

Hopefully nobody but Dana is celebrating this news. I think it's a good thing to have the other leauges...even if they are sort of the minor-leagues of MMA in one way or another.



Im not celebrating the news, but im definitly not crushed... more the opposite. Im anxious to see if the ufc will start signing some of their fighters like nick diaz, jake shields, yves edwards, or antonio silva. IMO it was only a matter of time before this news was going to be made public and the same goes for the other small US shows. Sure we need them as a sort of minor league for the ufc, but new ones will always be popping up for that. I don't think the WEC is going anywhere for awhile and, personally, thats my favorite smaller org to watch if u dont count Dream. I have high hopes for Dream and thats really the only organization i would shed a tear for because IMO it has the most potential to be a strong rival to the ufc like Pride.
Mchubb316
4/22/08 7:40:41PM
The UFC is doing something right. These guys know how much they are gonna be making before hand. With the UFC, you know that they are gonna be around for another fight as long as you put on a good show. Some of these other organizations might pay someone more for one fight, but you don't know if there will be another.
Kpro
4/23/08 12:41:53AM
You can't use a slingshot unless you pull it back.
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