The numbers for the Strikeforce / Showtime / CBS deal are slowly starting to come out, and MMA Weekly now has the dollar sign attached to producing three years worth of MMA content:
With up to 48 shows to book, that’s a lot of work. But according to another source with knowledge of the negotiations between Strikeforce, ProElite, Showtime, and CBS, the deal will prove very lucrative to the San Jose, Calif. promotion.
The source, who chose to remain anonymous, said Strikeforce stands to make $25 million dollars in license fees over the course of its three-year deal with the broadcast network and its premium channel sibling.
A portion of that revenue, first disclosed by an SEC filing by ProElite on Feb. 11 and, according to the source, put in the neighborhood of five percent, will be paid to ProElite Inc. as consideration for the sale of its assets to Strikeforce. The total revenue coming into ProElite coffers could total up to $1.25 million.
25 million bucks might seem like a lot of money but take into consideration this is for 48 shows. Divide that up and Strikeforce is making just over half a million bucks per show from the networks. Once we figure out how many of each kind of show Strikeforce is doing and how much they spend on fighter pay, we’ll start to be able to piece together how lucrative or not this deal is. EliteXC ended up in a serf-like situation, borrowing money from CBS to throw shows for them. I don’t think Strikeforce will fall into the same trap, but that doesn’t mean they won’t have to be very careful indeed with their event budgets and successful at the gate to avoid losing money.