Is Ecko In Serious Financial Trouble?

Mark Ecko, founder and famed designed of Ecko clothing, could be in a serious financial squeeze according to report in the New York Post. Ecko has also recently stepped up and started sponsoring several prominent MMA fighters including UFC heavyweight champion, Frank Mir, TUF 9 coach Michael Bisping, and "Ultimate Fighter" winner, Nate Diaz.

The story says sources have indicated that Ecko has hired investment bank, Peter J. Solomon, to help refinance at least $170 million in debt that are owed to 2 key business partners.

Because of this debt, Ecko may be forced to sell off pieces of his businesses to help financial woes and pay off creditors.

According to the report, Ecko owed over $100 million to Li & Fung, a global trading company that helps manufacture his products, and that the rough holiday season played a major part in the recent struggle.

Ecko has also now apparently defaulted on a $70 million loan from commercial lender, CIT, and as quoted in the story from the NY Post, Ecko is "scrambling to avoid bankruptcy so he doesn't lose every stitch of equity he's got."

Sources told the Post that Ecko's executives and business partners are in a scramble to sell off pieces of the business to rivals in exchange for immediate cash. Apparently, Ecko is also trying to lease out space in his huge 280,000-square-foot headquarters on West 23rd Street, in New York City.

How this could affect the MMA fighters that Ecko currently sponsors is not known. Independent sources indicated to MMA Insider on Friday that the financial struggles felt by Ecko could partially be a reason why the clothing giant fell out of the running for their bid for the Elite XC assets, of which they were rumored to be in contention for.

The NY Post contacted Ecko chief marketing officer, Michael Golden, who stated, "we're pretty confident that this isn't an issue that's life-threatening at all, in our case, we have more than enough assets to pay off that term loan, and we have more than enough time."

Stay tuned to MMA Insider for more information on this story as it becomes available.

Jake Shields, Thomas Denny, Conor Heun and Others Beat Up Bullies

Former Elite XC welterweight champ turned Strikeforce fighter Jake Shields is in Utah along with former Elite stablemates Thomas Denny and Conor Heun, filming the new MTV series "Bully Beat Down," hosted by the always-colorful Jason "Mayhem" Miller.

The concept of the show, originally reported by MMAInsider in October as an Elite XC-helmed venture produced by reality kingpin Mark Burnett, involves singling out town bullies to fight with professional fighters for cash.

Enter professional bullies Shields, Denny, and Heun.

Shields tells MMAInsider that former Elite executive Jeremy Lappen recruited them to appear on the show, and Shields was a part of its pilot in December.

"I get to be a good guy bully," he said. "It's pretty cool."

Shields will log two days on the show's set and will appear on two of its eight episodes, scheduled to debut sometime this summer.

Show contestants will have 2 rounds with the professional fighters--one 3-minute round of grappling and one 3-minute round of kickboxing with pads and headgear. Alas, Shields and co. are not allowed to elbow the lions-turned-lambs on the ground.

"That would be nice," he laughs.

As you can imagine, Shields is not losing sleep over the fights.

"I'm going to go run tonight," he said. "Just for fun. The guy I'm going up against is a good wrestler, so I better take it a little serious, but it's two 3-minute rounds. Nothing serious."

Reis Official with Bellator FC

Former Elite XC bantamweight champion Wilson Reis is bound for Bellator Fighting Championships, the emerging MMA promotion announced in a press release on Monday.

The Brazilian grappling standout was first rumored to join Bellator at its public inception, but the release confirmed his exclusive participation.

Stranded by the fall of Pro Elite, Reis is the first of its former champions to make a formal break for another MMA organization.

Reis will be one of eight 145 lb. fighters in Bellator's featherweight division. He will compete in the first round of a multi-weight class tournament taking place on Apr. 4 in a located to be announced. ESPN Deportes, the Spanish arm of American sports channel ESPN, will broadcast the event as the first of twelve specials in 2009.

The promotion also promises superfights along with the tournament format.

"Wilson has unlimited potential at 145," said Bjorn Rebney, CEO of Bellator Fighting Championships. "He has a terrific grappling pedigree, an unbelievable work ethic and he's getting better every time he fights. He's exactly the kind of fighter we're looking to showcase at Bellator Fighting Championships."

Why didn't EliteXC work under Gary Shaw?

Cage Rage Champ Talks Cage Rage and EliteXC Demise

Mostapha Al Turk, who makes his UFC debut against Cheick Kongo at UFC 92, spoke with MMAWeekly.com about the demise of ProElite and subsequently, Cage Rage.

"It's always sad to see any organization sort of come to their knees. But hey, you know, there's not one person or one organization that's bigger than the sport itself. And where as one door closes, another one opens for anybody," said the former Cage Rage British heavyweight titleholder. "I'm disappointed to see that happen for Cage Rage and EliteXC, but hey, life carries on.

"Cage Rage, they're a great bunch of guys. A very professional organization. I've got nothing bad to say about the guys that ran Cage Rage and the time I've had at Cage Rage, nothing bad what so ever really. It's all been positive," added Al Turk.

"It was the main show in the U.K., so it had a massive fan base. It was huge in the U.K."

Marc Ecko Going MMA With ProElite Purchase?

It sounds as if Marc Ecko Enterprises may be the latest apparel company willing to try its hand and gamble its reputation on mixed martial arts. That is if our friends over at iGuillotine.com have all their ducks in a row...

Although they weren't able to confirm it with Marc Ecko Enterprises directly, iGuillotine says that Ecko is the leading bidder to purchase what's left of ProElite, Inc. and its EliteXC brand.

There have been strong rumors lately that ProElite's doors, already shuttered, could soon be re-opened if a sale for the company's assets goes through.

Ecko has been dabbling its toes in the MMA waters, creating MMA specific apparel and sponsoring UFC fighters such as Nate Diaz, Michael Bisping, and Matt Hughes. Of course, the sponsorship door to UFC fighters will surely be slammed shut if Ecko does takeover ProElite and its television contracts with CBS and Showtime. Just ask the guys at Affliction.

Other strong rumors place Terry Trebilcock's King of the Cage -- and an unidentified partner -- as one of the front-runners to take over ProElite. Of course, there's nothing saying that Trebilcock's partner couldn't be Ecko.

Grind rumor mill, grind.

Gina Carano Headed to WEC? Not so fast....

Although UFC president Dana White has recently made public comments that he would be willing to entertain the prospect of former EliteXC star Gina Carano competing in the Octagon, it's not the Ultimate Fighting Championship he's talking about.

White said that he's not ready to put women's fights in the UFC, but he would give Carano a run in the UFC's sister promotion, the WEC.

"I heard that," confirmed WEC vice president Peter Dropick on Monday.

There's still a hang-up in having Carano fight even in the WEC.

"First off, I don't know if anyone knows really what the contractual situation is with any fighter from those other organizations," he said, referring to ProElite-owned promotions like EliteXC. "I think until that is flushed out, we would... we really don't have anything at this point."

That's not to say that Dropick isn't interested. On the contrary, he's very interested in adding more talent - including Carano - to the WEC's roster of athletes. "We'd be open to having some of the better fighters and the most exciting fights. (Carano) is certainly a star and she certainly has drawing power. So, we'll see how that plays out."

For now, like many EliteXC fighters, Carano is in limbo, trying to figure out just what her contractual status is while ProElite keeps toying with the idea of whether it will continue on or not.

"Fight Professor" Stephen Quadros Takes On Dexter This Weekend

"The Fight Professor" Stephen Quadros, famous for his commentating skills for MMA events all over the world, will step out from behind the microphone to test his acting skills opposite Emmy nominated actor, Michael C. Hall this weekend on the Showtime hit series, "Dexter."

The episode entitled "About Last Night" will feature Quadros in a supporting role on the show.

According to the IMDB.com database, the former Pride, IFL and Elite XC announcer will play a character named "Speedball" so the episode should be interesting to say the least!

Tune in this weekend on Showtime when the "Fight Professor" meets "America's Favorite Serial Killer"!

Pro Elite Auction: Hottest Ticket in Town?

With the advertisement of a ProElite garage sale hitting the wires last week, MMAInsider asked a few interested parties whether they planned to attend the Nov. 17 sale in Los Angeles.

Tom Atencio, VP of Affliction Entertainment, is not so hot on the idea. "It doesn't make sense," he said. "Do they really own the contracts of these fighters? It's my understanding that some of the guys are already out of the contracts. There's a bunch going on, I'm just trying to figure it out myself."

JD Penn, President of Rumble World Entertainment, one of the original companies to join the consortium of promoters, says he will send his lawyer to the Los Angeles meeting.

"I licensed the name," he said. "Other companies sold them. So if they're in breach of anything in Rumble World, then I get Rumble World back. We'll see what's available, what's for sale, if there is anything."

T.Jay Thompson, president of Hawaii's other big MMA promotion, ICON Sport, says he's sitting on the fence. After all, he's getting his ducks in a row to sue ProElite for non-payment of a five-year consulting deal he inked with the company last September.

"Yes (I'm going, but) I'm hearing rumors that ProElite is going to fight the auction," he said. "Would I show up to an auction? I guess, if it happened, but I understand my physical library (of fights) is mine."

Strikeforce executive Mike Afromowitz would not comment.

Terri Trebilcock, president of King of the Cage, was certain the auction would not happen.

UFC matchmaker Joe Silva was unavailable for comment, though UFC president Dana White has expressed interest in Elite properties Jake Shields and Robbie Lawler, so his presence would seem certain.

Scott Smith On EliteXC & Free Agency

Former top middleweight contender, Scott Smith, spoke to MMAWeekly Radio recently about his pending free agency from Elite XC, who he might fight for next, when that might be, and the reality of the fighters left in limbo after the company's demise.

Do EliteXC Fighters Fit the WEC Mold? Maybe...

World Extreme Cagefighting vice president Peter Dropick was recently asked if the WEC had any interest in signing fighters from the now defunct EliteXC promotion... specifically K.J. Noons, Nick Diaz, and Wilson Reis.

"I know our matchmakers are look at any fighters that are available. I don't know their contractual situations. There are a handful of guys that make sense, and there are some that just wouldn't make sense," Dropick replied.

Although he couldn't really commit to any specific fighters due to EliteXC and its fighters still being mired in a web of legal entanglements, the VP did sound like he was interested in bringing some of the top EliteXC talent to the WEC.

"I don't know specifically if we've talked to anyone or legally if we can talk to anyone at this point, but absolutely we're keeping an eye on that situation. We want the best guys in the world and those guys that are available we've got a lot to offer them."

One of the biggest questions surrounding EliteXC's collapse has been what will happen to the female fighters. Gina Carano has developed a certain amount of star power, and EliteXC had also attracted a number of other top female fighters like Cristiane "Cyborg" Santos, Sarah Kaufman, Tonya Evinger, Kelly Kobold, and others among them.

Unfortunately for the female EliteXC fighters and their fans, it doesn't appear that the UFC's sister promotion currently has any more interest in their services than does the UFC itself. Asked if there had been any discussion about bringing any of the female fighters into the WEC fold, Dropick simply replied, "No, there hasn't."

FOX Fight News Does the Rounds on Hot MMA Topics

This week's edition of FOX Fight News is broken up into six roundtable segments, discussing some of the hot topics of the day.

Round 1: Anderson Silva's "easy" win over Patrick Cote

Round 2: Affliction's move into the MMA market

Round 3: Roy Nelson makes accusations against EliteXC

Round 4: Women's place in MMA

Round 5: Dan Miller goes through his UFC 90 win

Round 6: A look at Randy Couture vs. Brock Lesnar

Nick Diaz's Official Notice of Breach of Contract

Nick Diaz on Thursday sent his official Notice of Breach of Contract to EliteXC. The letter is an attempt that many fighters are making to free themselves from the shackles of EliteXC's sinking ship. The promotion's parent company, ProElite, Inc., is expected to file bankruptcy any day now.

If the breach of contract doesn't go through, it is possible that the fighters under contract with EliteXC could get mired in the legal process when the bankruptcy court tries to find relief for ProElite's creditors.

Below is the letter that Diaz sent to EliteXC, as it was posted on his manager Cesar Gracie's website:


October 30, 2008
To EliteXC Live:
12100 Wilshire Blvd., Suite 8000
Los Angeles, CA 90025
Attn: Jeremy Lappen

Re: Notice of Breach - Unarmed Combatant Promotional Agreement between Nick Diaz and EliteXC Live, Inc.

Dear Sir:

Pursuant to Article 43 of the Unarmed Combatant Promotional Agreement between Nick Diaz and EliteXC Live, Inc. (“Agreement”), Nick Diaz hereby provides written notice of material breach of the Agreement. It has come to the attention of Mr. Diaz that EliteXC Live Inc. has declared the intent to file for bankruptcy and is no longer able to fulfill its obligations under the contract and has breached its representations and warranties pursuant to Article 47 of the Agreement.

Pursuant to Article 43 of the Agreement, EliteXC Live Inc. has thirty (30) days to cure such material breach by posting a bond or other form of escrow in such an amount as set forth in the Agreement that must be payable to Mr. Diaz upon completion of each contemplated Bout set forth in the Agreement and any extensions thereof, and, specifically to evidence EliteXC Live Inc.’s ability to fulfill its obligations under Article 47. If EliteXC Live Inc. fails to cure such material breach in the manner set forth above within thirty (30) days of receipt this written notice, then in Accordance with Article 43, the Agreement and any extensions thereof will be terminated.

Respectfully,

NICK DIAZ

Dave Meltzer Talks EliteXC Downfall on G4's Attack of the Show

Yahoo! Sports writer, Dave Meltzer, talks to G4's "Attack of the Show" about the recent demise of Elite XC and the future of MMA as a sport.

Unfortunately, the gorgeous Olivia Munn doesn't appear in this clip, but it's a good watch either way.

Robbie Lawler Comments on EliteXC and Beyond

The last ever Elite XC middleweight champion, Robbie Lawler, recently updated his blog on his personal website, Robbie-Lawler.com, where he talked about the recent demise of the company and he had good things to say about his time with the promotion.

"As everyone knows Elite XC is no longer around. I enjoyed my time working for them and I was treated really well. Thank you to everyone at Pro Elite for the opportunity to fight in front of millions of fans."

The internet started buzzing over the weekend when Lawler was spotteed at UFC 90 and speculation began running that he may sign with the promotion where he basically started his career.

While Lawler did not confirm or deny anything, he believes his future is very bright.

"Last week I spent at the UFC with Matt Hughes. The atmosphere was awesome as usual. I spent time talking to Monte Cox about what my options are. I also had a brief conversation with the very busy prez of the UFC. All that said I think I will be just fine. I will blog when I sign with an organization. Until then I will keep myself in good shape."

Along with Elite XC welterweight champion Jake Shields, Lawler is one of the top prospects that will be rumored to end up with the UFC at the end of the day.

Dana White's UFC 90 Video Blog (Ep 4)

UFC President Dana White presents his fourth blog for the UFC 90 weekend. In this edition, Dana heads over to the UFC 90 press conference and talks with the media in attendance about the downfall of ProElite and EliteXC, and then does ESPN radio with Steve Cofield.

He really layed into EliteXC again, saying, "Guys that (expletive) fix fights shouldn't be in the business... I don't need scumbags like that blowing it for everybody."

Dana White UFC 90 Video Blog: Episode 1, Episode 2, Episode 3

MMA Live Episode 24

MMA Live from ESPN hits with the latest episode featuring special guest analyst, Stephan Bonnar. The crew talks Elite XC and UFC 90 coming up this weekend.

Dana White's UFC 90 Video Blog (Ep 2)

UFC President Dana White presents his second blog for the UFC 90 weekend. In this edition, Dana talks about the downfall of ProElite and EliteXC as well as a beef with radio host and former Yamma announcer, Scott Farrell.

"Obviously today is a great day in MMA, ProElite is dead... so today is a good day," says White in this latest edition of his UFC 90 video blog.

Dana White UFC 90 Video Blog: Episode 1

"Seth (Petruzelli) was paid to stand up."

MMAWeekly.com talked with EliteXC consultant T.Jay Thompson on Monday night about the fallout from ProElite (EliteXC) closing its doors. Thompson was the founder of SuperBrawl, which later morphed into ICON Sport. He sold ICON to ProElite and now it is mired in the mess of the EliteXC meltdown.

Thompson was around at the final EliteXC show, "Heat," where Ken Shamrock withdrew from the main event at the last minute and UFC dropout Seth Petruzelli was tabbed to fight Kimbo Slice at the last minute.

Unless you were under a rock, you know Petruzelli KO'd Kimbo and then a firestorm ensued when he went on a Florida-based radio show talking about how he was influenced to keep the fight standing against Kimbo.

Thompson relayed his insights on the issue, and let's just say they offer no relief to the parties involved that have been trying to say that nothing of the sort happened:

"I was there cageside and watched the whole thing happen," Thompson told MMAWeekly.com. "Watching Jared Shaw jumping up and down and screaming as a representative of the company, I think was disgusting and embarrassing." He continued, "I don’t have a smoking gun, (but) I've been around long enough; I've talked to enough people that were there, I won't name names of executives in the company that I know. Seth was paid to stand up. I'm confident of that. If the commission wants to talk to me, I'll tell them what I know."

ProElite Shutting It's Doors Today (Tuesday)

EliteXC executive JT Steele informed the Nevada State Atheltic Commission on Tuesday of "the unfortunate confirmation that the November 8, 2008 EliteXC event will be canceled. It is with great regret that I must also inform you that ProElite, Inc. will be closing our operation today."

There had been some speculation that ProElite may run out the week, but it looks like that's not going to happen, not that it made any difference to the parties involved anyway.

It's a little early to tell how the closing of ProElite will effect the various fighters and promotions involved, most of them are spending a considerable amount of time today - and probably in the coming days - either on the phone with or in the offices of their lawyers trying to determine what their options are.

King of the Cage and Cage Rage have both gone on record to MMAWeekly saying that they will persevere, although it is unclear in what form or fashion.

Jake Shields told MMAWeekly on Tuesday that he is hoping to be set free from his contract and not be a part of the liquidation of ProElite's assets, as he'd like to fight against as soon as possible and has his sights set on the UFC.