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Pro Elite 10Q (8/19/08)
By Zach Arnold | August 19, 2008
Filing here. Some items of note:
The company’s current assets are around $15 million USD and it’s total accumuluated deficit is $55.7 million USD. On 12/31/07, the assets were $26.2 million USD and the deficit number was $31.4 million USD. This means that the company has admittedly lost nearly $25 million USD in a 6-7 month time frame.
How much money went out to try to create their own farm system? $5 million USD for King of the Cage, $8.2 million USD for Cage Rage, $2.35 million USD for the assets from ICON Sport, and a $2 million USD investment in Spirit MC.
Then, there’s this line about the Pro Elite web site:
Website operations expenses were $1,390,464 for the six months ended June 30, 2008 compared to $1,187,167 for the six months ended June 30, 2007.
There’s a lot to pour through in terms of the items in this filing, so take a look at it and post any comments you have about it.
Topics: Media, MMA, Pro Elite, Zach Arnold | 4 Comments » | Permalink | Trackback |
From Showtime/CBS, they made 900k, but it cost them 500k to make that.
Anyone that thinks that CBS is paying much more than the cost of the stock is mistaken.
For the quarter, they lost 18 million.
I don’t think Google spends that kind of money to operate their website.
I don’t think EliteXC knows how to run a business, let alone run an MMA business.
They spent less on marketing this quarter than they did a year ago.
While I’m sure CBS picked up a healthy percentage of the marketing costs for the CBS shows, Pro Elite badly needs to be ramping up their marketing right now. If they are going to get an audience, it has to happen right now. So the fact that they scaled back on their marketing either says they don’t have the money to do what they have to do, or they don’t know what they are doing. Either is troubling.
Looking closer, they haven’t scaled back on overall marketing, just on general brand marketing, focusing instead on event-specific marketing. I don’t know that thats the right plan, but on the other hand I don’t know that they have any better options.