Is EliteXC On Life Support?
by Kelvin Hunt on Aug 19, 2008 7:53 PM EDT
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ProElite(EliteXC's parent company) stock price is hovering at $2.75 a share. They have cancelled future shows, and gotten rid of most of the people that were responsible for the hint of notoriety they achieved. They have lost over 30 million dollars within the last year, not years...but last YEAR. Make no mistake about it, losing that type of money in such a short time span can cripple virtually anything. Think about this for a second, the UFC lost 44 million from 2001-2004. At this pace, ProElite will surpass that amount by the end of this year easily.
Basically they are hinging the entire company on two people...Kimbo Slice and Gina Carano. These two fighters are the marquee names carrying the 3rd EliteXC installment on CBS in October. Even if that show is a success ratings wise, what is next after that? Their roster lacks star power, plus they lack the funds to attract star power in the form of accomplished fighters.
The MMA business is driven by PPV buys, and the UFC has that niche on LOCK. Around 75% of their total revenue comes from that one source. EliteXC at their apex(right after their CBS debut) still would have done poorly PPV wise in my opinion. Because the lack of a deep roster of fighters does not allow them to offer PPV on a consistent basis to be successful.
I think EliteXC will complete their 4 fight deal with CBS and basically disappear, with a small number of credible fighters jumping ship to the UFC. I can see the next show featuring Kimbo and Carano being successful, but I doubt it will achieve the same level of success as the initial foray on CBS. It will probably give EliteXC just enough leverage to do the last show in the agreement. Then shortly after that the plug will be pulled. The following statement is ProElite's CEO Chuck Champion speaking to mmajunkie:
We look at October as a critical step in our development," ProElite CEO Chuck Champion told MMAjunkie.com (www.mmajunkie.com). "We’re approaching it that way. We’re not betting the ranch on the thing, so I don’t want you to think we’re just pushing ‘all in,’ using another analogy. But, with each one of these … if you do them well, they create momentum, and if you don’t do them well, they stall momentum. A young company needs a lot of momentum."
I call bullshit, everything is riding on this next show otherwise they wouldn't be canceling these other shows in an attempt to save money(to possibly put toward promotion for this show on CBS). He's right though, a young company does need a lot of momentum. Something ProElite has none of right about now.
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Is this a really surprise to anyone, especially when they protect their ‘marquee’ talent?
by El_Felix on Aug 19, 2008 9:01 PM EDT reply actions
I know the hardcore MMA fans hate it, but protecting your ‘marquee’ talent makes sense to some degree. Had Gina & Kimbo both lost during their 1st CBS show, EXC might already be out of business.
by steak knife on Aug 20, 2008 2:19 AM EDT reply actions
My point is their marquee fighters are exactly the opposite of marquee. That is why they are not having Carano fight Cyborg in October and they haven’t even named an opponent for Kimbo with the fight being less than 2 months away. What are they gonna do, get another bum on short notice for him to fight? Maybe they can get Larry Holmes or Leon Spinx to join the ranks of washed up fighters to secure another win for Kimbo. It’s all moot anyway. Once the ratings for the next event don’t reach the expectations of CBS, they will drop EliteXC. And these guys are speculating on having a PPV next year? That is pretty laughable. ELiteXC and PPV don’t belong in the same sentence. This time next year EliteXC will be done anyway.
by El_Felix on Aug 20, 2008 7:36 AM EDT reply actions
I disagree they don’t have marquee talent or names, they just have no idea how to promote/market them! I mean they got young guys that have name value in Jake Shields, Antonio Silva, Murilo Rua, Nick Diaz, KJ Noons, Yves Edwards, etc….but they just don’t know how to use them properly and build their name so people want to watch. Granted guys like GSP and Anderson Silva built their fame on destroying their competition, the UFC still took the time to really get people to want to see them fight and want to see them fight the people they’re going against….EliteXC needs to do the same ASAP
by Charles Walker on Aug 20, 2008 8:12 AM EDT reply actions
Steaknife makes a valid point in regards to ‘protecting’ the fighters.
Charles, what I meant is they don’t have marquee names that attract the casual fan.
by Kelvin on Aug 20, 2008 8:55 AM EDT reply actions
Yeah I understood that, but what I meant is that they can if they do things right
by Charles Walker on Aug 20, 2008 9:03 AM EDT reply actions
According to their Quarterley Report submitted yesterday…I was right…everything is riding on this next CBS show.
by Kelvin on Aug 20, 2008 9:49 AM EDT reply actions
Where do y’all think Kimbo goes should Elite XC fall apart?
by Jamar NuBar on Aug 20, 2008 2:22 PM EDT reply actions
he can go to that one joint that has Bobby Lashley from WWE. AFL I think it is.
by Charles Walker on Aug 20, 2008 2:23 PM EDT reply actions
I don’t think Dana wants Kimbo in the UFC. The only way he does is a one shot deal against someone like Brock Lesnar or something on PPV and Lesnar would maul him. Other than that…I don’t know.
by Kelvin on Aug 20, 2008 2:31 PM EDT reply actions
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