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Strikeforce confirms acquisition of select ProElite assets

The San Jose-based Strikeforce promotion has announced through a press release that it has reached an agreement to acquire select assets from ProElite, Inc. including the library of EliteXC’s fights as well as certain fighter contracts.

“This is a tremendous development that will bolster the Strikeforce roster and allow us to produce even more competitive matchups between top fighters,” company CEO and Founder Scott Coker is quoted as saying in the release. “Some of these athletes have been on the sidelines for a while now and are eagerly waiting to return to competition. We look forward to providing them with the opportunity to do so in the next few months.”

The imminent deal was first reported by SI.com’s Josh Gross and later confirmed by FiveOuncesOfPain.com having been contacted by two sources Thursday afternoon who revealed that an agreement to acquire ProElite’s assets by Strikeforce had just been completed.

Five Ounces of Pain has been informed that the crown jewel of the deal for Strikeforce are ProElite’s existing television contracts with CBS and Showtime. Strikeforce currently has an early Sunday morning half hour time slot on NBC that was acquired through a time buy. Sources expressed to us that Strikeforce had been close in December to finalizing a deal with NBC to televise live events but that the agreement was never completed.

It is now believed that with the agreement to acquire assets now completed, Strikeforce could begin airing live shows on CBS within the next several months. Sources have also indicated that CBS is enthusiastic about the prospect of working with Strikeforce and encouraged ProElite to finalize a deal with the promotion. The pressure from CBS was applied even though Strikeforce had not made the highest monetary bid of the three companies that ProElite was engaged in talks with. CBS and Showtime are also said to have been impressed by the fact that Coker has financial backing from the same group that owns the San Jose Sharks and the HP Pavilion.

According to Gross, the deal includes some fighter contracts as well as well as options for additional contracts. Strikeforce will also reportedly acquire the rights to the ShoXC brand name. Additionally, Strikeforce has apparently paid off ProElite’s debt to CBS with Showtime also retaining its ownership stake in the Strikeforce-owned ProElite.

Despite the announcement that Strikeforce has acquired fighter contracts from ProElite, it is uncertain whether those contracts are truly transferable. Despite the uncertainty, it is still possible that a large group of fighters that competed for EliteXC could be featured on Strikeforce shows. Multiple agents and managers have informed us that they would be eager to encourage their clients to enter into new agreements with Strikeforce that would assuage any legal concerns of transferability.

The prospect of a combined Strikeforce and EliteXC talent roster that is backed by CBS could produce a legitimate competitor to the industry leading Ultimate Fighting Championship. Top fighters currently on the Strikeforce roster include Strikeforce heavyweight champion Alistair Overeem, Strikeforce light heavyweight champion Renato “Babalu” Sobral, Strikeforce middleweight champion Cung Le, Strikeforce lightweight champion Josh Thomson, and former Strikeforce lightweight champion Gilbert Melendez. EliteXC’s current roster includes Gina Carano, Kimbo Slice, heavyweight prospect Brett Rogers, EliteXC middleweight champion Robbie Lawler, former Strikeforce middleweight champion Frank Shamrock, EliteXC welterweight champion Jake Shields, Nick Diaz, Eddie Alvarez, and Rafael Feijao.

ProElite has not promoted a show under the EliteXC banner since an Oct. 4 Saturday Night Fights telecast on CBS. With the company having financial problems, a deal for CBS to acquire ProElite had been in the works and was reportedly close to being finalized.

However, CBS pulled out of negotiations amid reports that last-minute injury replacement Seth Petruzelli was paid not to take his main event fight against Slice to the floor. ProElite canceled a planned Nov. 8 Showtime event in Reno soon after and suspended operations.

The company executed mass layoffs and has been dormant ever since. Showtime, which was owed over $6 million by ProElite, had planned a November asset auction of ProElite’s assets but ultimately moved to cancel it. Reports surfaced soon after that remaining ProElite executives and attorneys were attempting to complete a sale of the company.

In addition to Strikeforce, companies such as Mark Ecko and Sun Entertainment as well as separate groups led by King of the Cage promoter Terry Trebilcock and former EliteXC executive Jeremy Lappen are all believed to have been involved in negotiations to varying degrees. FiveOuncesOfPain.com had previously reported in December that a deal was close to being completed but such an agreement never materialized.

Editor’s Note: This article was updated at 4:04 p.m. ET on Feb. 5 to reflect Strikeforce’s reponse to our request for comment. It was updated a second time to reflect Strikeforce’s confirmation of the deal.

16 COMMENTS
  • meatloaf says:

    This is great news.
    Strikeforce is a well run promotion with some quality fighters and adding some of EliteXC’s best to it will further deepen their roster.
    I’m really excited that MMA is going to be back on CBS. I hope they keep Gus Johnson and Frank Shamrock on as the lead announcer’s they both did a great job in my opinion.
    I can’t wait until the deal is finalized and the first show is announced.

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  • dpk says:

    I hope this is true, that way we can see guys like Shields, Lawler, and Gina back in action soon. And Strikeforce is a good promotion, not run by some guy with an MMA get rich quick mentality.

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  • benkordus says:

    I havent heard anything about strikeforce in awhile, good news. Too bad the fighters for (non)eliteXC wont be fighting for probably another 6 months to a year.

    glass half empty

    yours,

    benji

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  • CubanLinx69 says:

    interested to see what happens with the fighters’ contracts.

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  • bubbafat says:

    This is the turning point. Pro Elite and Elite XC were doomed the second Kimbo became their headline. Now we get to see what someone who knows the fight game,and the business and politics of the fight game can do. And he’s already got a successfull foundation unlike other’s who, by comparison, started from scratch on T.V.. Wow. A credible, regional promotion going all the way. They just have to fix the doors to their cages. Can’t have that stuff breaking on National T.V. it’d be worse than “Standgate”.haha

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  • JDamico23 says:

    No competition to the ufc…however id enjoy very much seeing another successfull organization.

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  • meatloaf says:

    @JDamico23
    “No competition to the ufc”.
    What’s your point here other than telling everyone you’re a UFC nuthugger.

    I mean what does your comment have to do with Strikeforce buying EliteXC’s assets?

    Nothing.

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  • Bryan Levick says:

    They shouldn’t concern themselves with being in competition with the UFC. Continue to be Strikeforce and keep running the same program that has brought them success up until this point. They have done a great job and I hope they continue to grow slow and steady. They have an opportunity to have a kick ass roster and get these great fighters exposure on CBS and Showtime. This is is awesome news for the fighters who have been kept in limbo as well as the fans.

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  • EJ says:

    Doesn’t Strikeforce have a deal with NBC already?, plus there have been rumors that had them doing a big Fight Night event sometime this year on Primetime. I seriously doubt that they would be happy with them doing shows with CBS while airing on NBC the networks, someone should look into their contract to see how this is all going to work at all.

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  • Sam Caplan says:

    E.J., as the article states, the agreement with NBC is a time buy. NBC does not have the contractually ability to prevent Strikeforce from doing live events on CBS.

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  • Sergio Hernandez says:

    “Doesn’t Strikeforce have a deal with NBC already?, plus there have been rumors that had them doing a big Fight Night event sometime this year on Primetime. I seriously doubt that they would be happy with them doing shows with CBS while airing on NBC the networks, someone should look into their contract to see how this is all going to work at all.”

    From what I remember, their deal with NBC was for 1 year. That should be coming up in the next few months.

    I also read that Strikeforce has an out on that deal regardless.

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  • Lord Faust says:

    More MMA on TV, this is definitely a good thing. I wish Strikeforce luck! Hopefully I’ll be seeing Cung Le soon.

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  • kidneybeans says:

    You’ll be seeing Cung Le alright, only it will be in a low budget movie. I love the guy but how much time off does he need to make a few crappy movies?

    I’m excited to finally hear something about this, but I will wait to see what fighters are actually coming over before I start dreaming of the possible matchups.

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  • ultmma says:

    Thank god Jeremy Lappen didnt get his hands back on another promotion to destroy

    SF knows what they are doing hopefully they didn’t over pay to acquire or get out of debt for Pro Elite.

    I Won’t be holding my breath but D White has never really said a bad word about SF and Scott Coker hopefully the MMA world can have a little harmony for the remainder of 2009.

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  • Heatwaves says:

    Will Strikeforce really be able to transfer EliteXC’s fighter contracts? As you’ll all remember, Pride’s contracts did not transfer over to the UFC. Hendo, Wandy and others all had to have renegotiated contracts with the UFC. It was their choice. I wonder if each EliteXC fighter will have the opportunity to choose the best offer for them.

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  • VENOM says:

    Spectacular News! I couldn’t be happier! Mark the calender,fellas. This could be a historic day for MMA.

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