The rumors coming out of Japan a couple weeks ago suggested FEG, the parent company of K-1 and DREAM, is in serious financial peril and may not be able to continue staging combat sports events if PUJI Capital isn’t able to raise much-needed funds in a timely manner.
Apparently, there was quite a bit of truth to those rumors. It’s not often you find a company representative willing to go on the record and admit their uncertainty about their company’s future, but that’s basically what DREAM US representative Mike Kogan did earlier today. Speaking to MMA Junkie, he rather candidly confirmed that FEG’s future likely hinges on PUJI Capital’s ability to raise investment capital for the organization.
But Kogan admitted FEG’s future is grim if the Japanese investment bank does not make headway by the beginning of next year.
“Are you asking me if we’re going to be in business after Dynamite? I don’t know,” he said. “It’s very difficult. Obviously, we’re short on revenues, and we need to – besides restructuring – we need to be able to find new sources of revenue.
“You need money to make money, so to speak. I don’t sit in on the financial meetings. But it’s very challenging.
“We need investment money. That’s the bottom line.”
“I know that there are various companies that PUJI has already spoken to that have shown tremendous interest, and there’s been ongoing conversations,” he said. “There have been a few near misses where we were almost heavily invested (in) by some companies over the years. I think there’s interest, but I don’t know 100 percent what’s going on.”
All Kogan seems to know for sure at this point is DREAM.16 will continue as planned on Sept. 25 followed by the K-1 WGP “Final 16″ on Oct. 9, (presumably) the K-1 WGP finals in Dec. and Dynamite!! 2010 on NYE. Beyond that is up in the air.
In more promising Japanese MMA news, it looks like SRC is going to stage their own NYE show this year. As you may remember, they partnered with FEG last year to put their fighters on the Dynamite!! 2009 card prompting many to question their future. It appears those questions have been answered though because SRC continues to hold events, and it’s even rumored now that they’re managing to keep their ink in the black.