Last we heard, EliteXC was still $2 million short of the $3 million needed to continue through the rest of the year. Showtime pumped in $1 million, although that seemed to be more of a move to position themselves as first in line to buy the company. With all of the hoopla leading up to the event, it was easy to forget how exactly they were paying for it. Well, guess what? ProElite/EliteXC didn’t pay for it, CBS did. And the real kicker is they kept all the revenues too.
Previously, CBS ordered an additional event under the Agreement from the Company scheduled to be presented on October 4, 2008, at The BankAtlantic Center in Sunrise, Florida (the “Sunrise Event”). The Company advised CBS that it was unable to deliver the Sunrise Event ordered by CBS for October 2008 under the current terms of the Agreement.
Accordingly, the Company and CBS agreed to amend the Agreement whereby CBS would assume all expenses for the event and receive all revenue from the event. CBS advanced the estimated event costs according to an agreed upon budget in order for the Company to pay expenses related to the event. Additionally, the Company and CBS waived mutual exclusivity under the Agreement for the Sunrise Event.
So while $kala was running around talking about how great of shape the company was in, ProElite was behind the scenes telling CBS they’re so broke, they can’t even put on the third and most important event in their short history. Nice.
CBS essentially owns their ass without owning their ass. No wonder they’re so eager to put on the fourth event.