As far as ProElite goes, it’s no secret as to why the company is failing. Going too big too fast and having insane corporate overhead have led to a company that is on death’s door despite TV deals with both Showtime, CBS, and the illustrious NutsTV. Why they hired some big bucks executive to cut away all the fat is beyond me. Adding more weight up at the top seems like an ironic ‘solution’ to ProElite’s problems.
Funny enough, all them fancy executives still think the money drain is coming from those stupid MMA events they keep holding:
Champion says he’s cut SG&A costs by a million dollars per month since taking the reigns of ProElite, and is looking for other ways to pad the bottom line. “There’s still more an opportunity to take out some more to be run more efficiently and effectively,” he said. That includes possibly cutting assets that don’t produce revenue, like the satellite promotions ProElite gobbled up in its first year of operations.
“King of the Cage is solid, it’s doing well,” he said. “But you got Cage Rage, Rumble World, and Icon. Icon and Rumble World (are a) very difficult market; very hard hit by this economy. With Cage Rage, we have not been able to turn a profit on some of those major events we’ve put on there. I’m a big believer if you aren’t making money, why are we putting them on?”
These promotions were making money before ProElite took them over, and now they aren’t. What’s different? My bet is a couple hundred thousand bucks worth of dead weight per event care of the pinheads at ProElite.