Zuffa Buys Strikeforce 13.3.2011
Posted by David Damage on Thursday, November 17, 2011
Under: News
Here are some details on the sale of Strikeforce to Zuffa (UFC)…
On Monday, UFC is scheduled to have a press conference to answer questions regarding the purchase.
There were two entities interested in purchasing Strikeforce but UFC
made the stronger money offer. It looks as if the UFC was aware of the
first deal in place and in either late November or early December
decided they were going after it. Negotiations have gone on since that
time.
Some feel the purchase is not a good thing for the
fighters as they can't play two sides against each other in contract
negotiations.
There are already people looking at trying to get venture capitalists together thinking they can now be that rival brand.
The sale is not considered good news if you're a woman fighter.
A very important aspect not being talked about is the tape library they
got in the purchase, which includes Strikeforce and EliteXC. Zuffa is
looking to do its own channel similar to the NFL Network and also what
WWE has planned.
According to sources, ProElite Inc. was in
active negotiations with the recently acquired Strikeforce. They had
recently met face to face with CEO Scott Coker, and offers were made.
The revamped company's proposal to acquire the California-based
promotion may have included cash and stock paid to Silicon Valley Sports
& Entertainment, which is the sports-franchise company that owns
Strikeforce along with Coker. Word is that Strikeforce generated $30
million in revenue for the 2010-2011 fiscal year, but that, "Silicon
Valley was relatively happy with the returns but didn't want to take it
to the next level." Another source claims that the sports franchise had
been losing cash and had grown skittish with its investment. ProElite
Inc. was the parent company of EliteXC, which hosted 21 events from 2007
to 2008, before mounting costs halted operations. EliteXC operational
costs and its purchases of ICON Sport, King of the Cage, Cage Rage and
other international promotions led to $55 million in losses.
In : News