Tuesday, August 19, 2008

EliteXC Lost $30 Million

According to the Securities and Exchange Commission, EliteXC has lost $30 million since it's birth in November 2006. Some have pointed to the UFC's own financial troubles in the early days as evidence it is possible to turn things around. I do not see the comparison. The UFC was losing money before MMA caught on. It was not even regulated yet. Comparing a company losing $30 million now to the UFC's early loss does not make sense.

EliteXC has no one to blame, but themselves. I have pointed out their illogical choices numerous times. They have TV deals with Showtime and CBS. One of the most recognizable fighters in MMA works for them. Losing money in that environment means you have incompetent people running the business. Gary Shaw and Doug DeLuca resigned for a reason - they were running the company into the ground.

Now the new braintrust must come together and figure out a way to work with a shoe-string budget. I do not see it happening. The only way EliteXC survives is if some one comes in and rescues them. Affliction is the likely choice because a merger between the companies makes a tiny bit of sense, but it is not like Tom Atcenio is beating down their doors. CBS has been floated around as a possible savior. I do not see that at all. CBS did not even promote the second EliteXC telecast in July. They knew then things were bad and it was best to keep a low profile. Why would they want to help now?

It is too bad. EliteXC is entertaining and a nice alternative to the other MMA giants. You would think a MMA promotion with a CBS deal would be attractive to financers, but EliteXC has proven you can mess up any situation.


Anonymous said...

XC sucks. I hope they go down in flames and Slice signs with UFC and Lesnar clips him bad.

chappyd said...

elitexc should hire me to turn things around. i went to college.