Good news for everyone that was afraid that ProElite was going to drag down all the promotions it bought with it. Dave Meltzer (who’s been on more of a tear that usual lately) is reporting that if/when ProElite files for bankruptcy, all of the satellite promotions return to their original owners:
Another potential issue regards groups like King of the Cage, Icon Sports, Rumble World Entertainment, and Cage Rage, all of which were purchased by Pro Elite, Elite XC’s parent company.
Most deals included putting the former owners under contract as executive consultants (and then not listening to them), giving them some cash as well as company stock, at the time worth millions and now worth almost nothing.
The deals were structured as such that if Pro Elite went bankrupt, all could go back to promoting using the names they developed. King of the Cage, which was the only group profitable underneath the Pro Elite banner, is expected to continue running events as soon as possible. Cage Rage, a U.K. based group whose losses were so staggering they greatly sped up the demise of Pro Elite, is likely not to last much longer.
For some reason I got a feeling that Cage Rage is gonna surprise people with how it bounces back.