In recent hours FiveOuncesOfPain.com has been informed by sources that ProElite, Inc. has accepted a bid to sell its assets to an outside company.

However, Five Ounces of Pain has been unable to verify the identity of that company. It is also unclear whether the company came close to receiving its asking price of $9 million. An announcement could be made by the end of business on Thursday, or possibly on Monday.

Several companies have submitted formal bids to ProElite in recent weeks, with the company believed to have set a Thursday deadline to decide on a buyer. Sources have indicated that if a bid was not accepted soon, ProElite would not have had enough money to continue operations and likely would have filed for bankruptcy.

Over the weekend, multiple sources identified a group led by King of the Cage promoter Terry Trebilcock and a financial backer as the leading candidate to acquire ProElite’s assets.

Other groups said to have made bids were Strikeforce; a group led by former EliteXC Director of Fight Operations Jeremy Lappen; and another group headed by former ProElite COO William Kelly. Sources have confirmed that neither Strikeforce or Lappen’s bids were successful.

Published reports also suggested that Mark Ecko’s Ecko Enterprises had also submitted the bid, but two separate sources have informed Five Ounces of Pain that Ecko was never a serious contender and it’s uncertain whether they even submitted a formal bid.

Multiple sources have also revealed that the UFC expressed an interest in ProElite’s assets at one point before deciding not to pursue matters any further.

While ProElite’s fighter contracts are considered to be a valuable asset, industry insiders have stressed to Five Ounces of Pain that it’s the company’s television contracts with Showtime and CBS that are perceived as the most valuable asset. However, it remains to be seen just how valuable the CBS contract is.

While the terms of CBS’ agreement with ProElite contains a mutual option, only one more fight exists under the current deal. Being that CBS is also a major network, it retains the right to cancel the contract at any time so the remaining broadcast is not guaranteed.

Furthermore, a source says that what CBS has told companies interested in placing a bid on ProElite that they would be paid a rights fee of $400,000 per show. However, any company that inherits the television contract would also be obligated to cover CBS’ production costs, which are believed to be as much as $500,000.

Under the aforementioned financial terms, a fight group could potentially lose money promoting shows on CBS. However, the same source indicated that under the terms of the deal, a company would have the ability to sell some of CBS’ ad inventory and if they were successful in that regard, they could turn a profit on the show.

The terms also do not factor in the intangible value of using free-over-the-air television to build potential pay-per-view drawing cards. But being able to take advantage of such a platform in order to build stars is far from a given, as EliteXC was only able to build Kevin “Kimbo Slice” Ferguson and Gina Carano into true ratings movers. And while Slice and Carano were legitimate ratings movers, their ability to draw pay-per-view buyers was never tested.

view original article >>
Report here if this news is invalid.

Related News

WSOF hires cutman 'Stitch' Duran to work 'Palhares vs Shields' event after controversial UFC release

  • 8 days ago
  • 6 views

In a recent conference call to promote "Palhares vs. Shields," which takes place on Aug. 1, 2015, WSOF President Ray Sefo declared that he'd love to have renowned cutman Jacob "Stitch" Duran in the o read news >>

Duane Ludwig doesn't regret recent comments about Team Alpha Male

  • 8 days ago
  • 106 views

CHICAGO -- Duane Ludwig talks about his recent comments regarding Team Alpha Male, what he meant by those comments, what makes Dillashaw special, the rematch against Barao and more. read news >>

Reebok issues statement in wake of 'Stitch' Duran firing

  • 9 days ago
  • 263 views

Reebok is distancing itself from the firing of Jacob "Stitch" Duran. Less than 24 hours after the UFC's controversial and largely unpopular decision to part ways with the legendary cutman, Reebok iss read news >>

Jose Aldo launches wild litigation spree, threatens to sue UFC and Chael Sonnen over recent rib roast

  • 10 days ago
  • 561 views

Reigning Ultimate Fighting Championship (UFC) featherweight titleholder Jose Aldo has been asking Chael Sonnen to STFU for several years and to the surprise of no one, "The American Gangster" has ign read news >>

NSFW: UFC 189 Turns into Bloodbath

  • 20 days ago
  • 10 views

UFC 189 felt doomed for a while there on Saturday. For hours on end, the card was defined by dreadfully boring, mid-level fighters. Sure, there were some flashes of entertainment and skill, courtesy read news >>

New Invicta champion Tonya Evinger found motivation in recent Dana White tweet: 'That pissed me off'

  • 22 days ago
  • 43 views

LAS VEGAS -- New Invicta FC bantamweight champion Tonya Evinger talks about beating Irene Aldana, finally becoming a champion, how she turned her career around, finding motivation from a Dana White t read news >>

Tonya Evinger Invicta FC 13 media day scrum

  • 24 days ago
  • 8 views

LAS VEGAS -- Tonya Evinger discusses recent comments by Sean Shelby, her motivation, why she would rather fight for Invicta than UFC, and more during Invicta FC 13 media day Tuesday. read news >>

Eddie Alvarez reacts to Gilbert Melendez's drug test failure: 'I understand why guys do stuff'

  • 24 days ago
  • 83 views

Eddie Alvarez got wind of Gilbert Melendez's recent drug test failure for exogenous testosterone, but it doesn't sound like the former Bellator champ is taking a very hard line stance on the issue. W read news >>

The UFC Cutting Room Floor: Hatsu Hioki and long goodbyes

  • 24 days ago
  • 3 views

Zane Simon goes in depth on the most recent UFC roster cuts, just who the fighters were, and whether or not we might expect them back soon. New to this episode, a look at the UFC signings from the mo read news >>

Al Iaquinta Off UFC Fight Night 71 Card, Looks to Fix Knee Injury

  • 25 days ago
  • 0 views

Within hours of learning that Gilbert Melendez had failed his UFC 188 drug test, Al Iaquinta bagged hopes of fighting on July 15 in San Diego. read news >>