Wednesday, February 4, 2009

Strikeforce Exec Denies Sale

MMAInsider has followed the long, convoluted saga of Pro Elite Inc., since the MMA company first announced it was closing its doors last October.

Following it's rapid collapse, a handful of suitors emerged to vie for the company's assets, including Mark Ecko, the UFC, Terri Trebilcock, and Strikeforce. After a botched attempt by Showtime to auction the spoils of the company, the deal went underground. The winning bid seemed to change weekly, sometimes daily.

In recent weeks, several industry sources have confirmed that Scott Coker and Strikeforce have emerged as the likely candidate to purchase Pro Elite's assets. In December, the San Jose-based promotion was on the cusp of a deal to purchase parts of the company, but last minute hike in the price of the deal shelved it.

However, multiple sources who wished to remain anonymous said last week that negotiations between the companies had resumed and were entering their final stages.

On Wednesday afternoon, multiple reports surfaced that Strikeforce had agreed in principle to a purchase of Pro Elite assets and an announcement was forthcoming by the end of the week.

Strikeforce executive Mike Afromowitz confirmed to MMAInsider that negotiations were progressing, but the deal was not done.

"That's incorrect," he said. "Any reports of a done deal are a complete fantasy."

Afromowitz said the deal with Pro Elite was far more complex than reports had stated.

"It's complicated, and that's why I don't want to speculate," he continued. "If anything is done, it will be very technical. It's not as straightforward as you think."

If a deal between Strikeforce and Pro Elite comes to fruition, Pro Elite's television deals with CBS and Showtime, as well as select fighters on their roster, are valuable spoils of the transaction. Though Strikeforce has an existing contract with NBC to air pre-recorded fight specials, a live TV deal has eluded them. A deal with CBS could remedy that issue, or perhaps provide leverage in future negotiations with NBC.

Afromowitz said he would have more information soon, but stressed it was too soon to close the books on the saga.

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