The new CEO of ProElite explains to us how the company plans to be the number two MMA organization in the world

Zeus

Jun 21 |14:18

Last Updated on Tue, 21 Jun 2011 15:18

A few days ago while most of you were laying down bets for the second leg of the Strikeforce Heavyweight Grand-Prix, the Stratus Media Group secured 95% of the previously defunct ProElite. In the press release Paul Feller, the CEO of Stratus Media Group, proclaimed the organization had every intention to get back in the MMA arena. It was pretty intriguing stuff, so Elena Lopez tracked down the new CEO of ProElite to see what his plans are for the newly acquired franchise and she managed to snag this rather extensive interview. Enjoy.

Why the acquisition? What value do you see in the ProElite franchise?"Well we see a lot of value in the acquisition. We think it's a space that has a lot of upside potential. It's a growing market, one of the fastest growing sports on a global basis -- both television and on-side attendance wise. We thought it had a very specific demographic profile that we wanted to invest and build into. We have a well-established name worldwide, they have a wonderful library of previous events and we're looking to take that branding and that history, and rebuild the brand as a major player and we're looking to fill the number two spot that Strikeforce once held."

How long did it take you to acquire the company and what obstacles were presented, if any?"I wouldn't say there was any real obstacles. We definitely have taken our time. Our goal was that when we're ready to launch, we wanted to make sure we were prepared and do it properly and we believe we are there now."

You're a public company which means that you will have to fully disclose what's in the books, yet you will be competing with a private company that aren't necessarily forced to adhere to those guidelines. What are your plans for this?"Well I can't really comment who we're competing against. I can comment on our company which we're an aboveboard, publicly reporting company. We have multiple events, not just in the MMA space, but music festivals, concerts, film festivals, autoracing, autosports -- and we're going to extrapolate the benefits of media and sponsorship from all of our different properties and cross-pollinate them across all of our brands and all of our events including ProElite. That means leveraging our television relationships, our sponsorships and our merchandising partners. We have considerable resources to go into this and better the chances and the odds to make ProElite a large success. But I'm not in the position to make comments on what other companies are doing or not doing, that's not our place."

It appears your company has not reported to the SEC since 2010. It also appears the OTC Markets has issued a 'stop' sign on your stock. How are you going to address these issues moving forward. "Yes, that's correct. It's not the stock that had issues in trading. The DTC, which is the electronic side of trading had an issue. We're addressing those as we speak. We believe those will be lifted, they're unrelated to anything that has to do with ProElite. They have to do with another company which, unfortunately, ProElite was associated with from a macro level and it should never have an interruption on electronic trading. The company (PELE) is still trading. Because we're reporting to the FTC, we are currently getting what they call the quarterlies and the annual recordings up to speed and we believe that will be done shortly. We'll be fully reporting and fully trading in about three to six months."

It appears that you are trying to deliver a large block of stock to your new investment group. How are you planning on issuing these shares?"We're not in position to state that. Right now we've taken over 95% control interest in the company. We are financially invested in the company and when we're ready to make announcements then we'll do it at that time. We are a publicly reporting company and whatever we disclose we have to do it on a public nature and at this point we're not ready to disclose what this strategy is."

What assets does ProElite own that make the Stratus Media Group see value in investing in a defunct business as opposed to starting a new one? "Well there's a number of them. There's a large library. There's the intellectual property value. There's the historic staff knowledge, fighter relationships and the equity in the brand awareness which is world-wide."

When will the company file to get off OTC Markets? "That is a potential strategy for us. We're looking at a number of different options and that is one of the options to potentially look at -- to a larger filing like NASDAQ or an American Stock Exchange."

It's rumored that you offered $40 million for Strikeforce, can you clear this up?"I can tell you that we were in significant discussions to acquire a large portion of Strikeforce and it did not materialize."

So...what happened? "Well, it's well known that UFC came and acquired things."

What are your intentions with the new company? Who is your competition?"Well I think the obvious ones are, of course, Strikeforce and Bellator, I think everyone is waiting to see what they're going to do. But at the end of the day, I think our competition is yet to be determined to see who's going to fill that second-tier position that Strikeforce was doing quite a good job filling with a lot of our old fighters and our TV deal, so it's yet to be determined. I don't think there is anyone that's a major contender to the spot we're looking to fill. We certainly intend to be one of them, if not 'it'."

Are you planning on refreshing your CBS deal moving forward?"We certainly would love the option to. Whether it's available or not could be determined depending on what happens with the future of Strikeforce and UFC."

What will happen with the EliteXC and CageRage video libraries? "To be determined. We're still looking at that right now and trying to get our arms around it ourselves."

There aren't a lot of free agents available in MMA, how would you facilitate a healthy roster in ProElite?"Oh, I think that there is a tremendous amount of free agents and I think everyday it's growing. A number of major fighters are coming out the woodworks and I think, with anything in business, build a better mousetrap, offer a better service we will fill our own destiny to get top-ranked fighters in and we already are in major communications to get a number of them. So I don't see that being a hindrance or a barrier to anything."

In one year from today, where do you expect ProElite to be in comparison with the rest of the MMA world?"Well our hopes and our beliefs is that ProElite will be a major contender in the space and have a number of events operating under its belt already."

Comments

+7 # synthsis 2011-06-21 15:27

really good interview but I am concerned about the Roster options. I don't care to see Kimbo in a main event ever again.

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0 # dkommel 2011-06-21 20:14

I don't care to see Kimbo ~~in a main event~~ ever again.*

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+2 # Guest 2011-06-21 16:01

What top free agents is he talking about?

Other then prospects and maybe some former names that have been cut and arent top guys, who else can he sign?

UFC/SF has the top guys, UFC/SF and Bellator have basically all the top prospects being signed, I dont see who they will get.

And even if they did manage to land a big free agent who is he gonna fight?

I hate to say it but this is pointless, there is plenty of room for mma orgs but not enough room at the top for the major players.

You want to be a feeder org, Tachi Palace type org thats great, but trying to compete with the UFC/SF and now Bellator is stupid.

I personally dont want to see more top fighters in different orgs not fighting each other.

Now with UFC/SF we can see the top fighters, but even with Bellator, I dont want to hear oh Askren is unbeaten, has teh wrestling, he can beat GSP, but we wont find out cause he is in Bellator.

or eddie is the best LW, Lombard could knock out UFC MW etc, its bad enough we have this now, do we really need another org trying to take up top talent?

I wouldnt put much stock in them cause I dont think they will be able to build a roster anyone cares about, UFC is tops, SF right now is second and Bellator is third, if UFC/SF merges and Bellator moves to Spike then its a clear cut Zuffa 1 and Bellator a distant distant 2, but they will be a secure 2 and no other org will be on that level.

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+3 # Kieran McNairn 2011-06-22 03:37

Quoting Chris27:

Now with UFC/SF we can see the top fighters, but even with Bellator, I dont want to hear oh Askren is unbeaten, has teh wrestling, he can beat GSP, but we wont find out cause he is in Bellator.

or eddie is the best LW, Lombard could knock out UFC MW etc, its bad enough we have this now, do we really need another org trying to take up top talent?

You seriously think that's a bad thing? People (including DFW) try to compare MMA to NFL or NBA etc. That's a fallacious argument in my eyes, because of the nature of our sport. Think about it, how would this guy sell stocks in his company if his main goal for the future was to be a feeder organisation?

"Oh, we plan to be on the level of XFO, Taichi Palace Fights and ROC"

???

Business strategy is the same as fighting strategy in many ways, they won't reach their potential by aiming at the 3rd or 4th tier. Look at your organisation and see what the main differences are between you and those who you want to compete with, then address those discrepancies.

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+3 # Guest 2011-06-21 20:30

great questions and interview

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+3 # Guest 2011-06-22 03:11

are the shaws still involved? cause fuck them

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+2 # Guest 2011-06-22 10:55

Just give me Kimbo Slice vs. Gilbert Yvel and I'll be happy.

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+8 # Guest 2011-06-22 13:58

Great interview. However, if you want to see the future of this idiotic business venture, just look at the past. Search for "SDMI.OB" in Google and you will quickly come across all of their SEC filings (10-K, 10-Q, and 8-Ks). READ THEM and you will see that they raised a bunch of money (approx. $14.1MM) from one main investor (Isaac & his wife Miriam Blech) and about 70 small ones.

They have about $28MM in losses on the books (mostly bogus accounting regarding stock), they are trying to promote a "VISA White Card" marketing program in Europe, doing lousy auto races that eat up money and don't produce profits, and many other things. They have generated $0.00 in revenue in the last 2 years, but they have spent millions of investor dollars on Executive salaries, finders fees for guys finding them suckers to invest, and attorney fees to keep themselves out of jail. Full disclosure is GREAT.

These guys will only burn up a bunch of money (ALOT LESS then the original EliteXC promotion had backing them) and they will not have the FOCUS on the MMA business to make anything better than another failed promotion... AGAIN !! With funding Europe marketing program, concerts, auto races around the world, and other junk, how much do you think they will have to develop a STABLE mma promotion from a lousy, defunct one?

Just sayin'!

Remember, those who do not learn from History are condemned to repeat it!

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+3 # KevZeeBest 2011-06-22 15:03

Quote:

Great interview. However, if you want to see the future of this idiotic business venture, just look at the past. Search for "SDMI.OB" in Google and you will quickly come across all of their SEC filings (10-K, 10-Q, and 8-Ks). READ THEM and you will see that they raised a bunch of money (approx. $14.1MM) from one main investor (Isaac & his wife Miriam Blech) and about 70 small ones.

They have about $28MM in losses on the books (mostly bogus accounting regarding stock), they are trying to promote a "VISA White Card" marketing program in Europe, doing lousy auto races that eat up money and don't produce profits, and many other things. They have generated $0.00 in revenue in the last 2 years, but they have spent millions of investor dollars on Executive salaries, finders fees for guys finding them suckers to invest, and attorney fees to keep themselves out of jail. Full disclosure is GREAT.

These guys will only burn up a bunch of money (ALOT LESS then the original EliteXC promotion had backing them) and they will not have the FOCUS on the MMA business to make anything better than another failed promotion... AGAIN !! With funding Europe marketing program, concerts, auto races around the world, and other junk, how much do you think they will have to develop a STABLE mma promotion from a lousy, defunct one?

Just sayin'!

Remember, those who do not learn from History are condemned to repeat it!

Hello Dana..

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0 # Guest 2011-06-27 15:38

Quoting Kevin conroy:

Quote:
Great interview. However, if you want to see the future of this idiotic business venture, just look at the past. Search for "SDMI.OB" in Google and you will quickly come across all of their SEC filings (10-K, 10-Q, and 8-Ks). READ THEM and you will see that they raised a bunch of money (approx. $14.1MM) from one main investor (Isaac & his wife Miriam Blech) and about 70 small ones.

They have about $28MM in losses on the books (mostly bogus accounting regarding stock), they are trying to promote a "VISA White Card" marketing program in Europe, doing lousy auto races that eat up money and don't produce profits, and many other things. They have generated $0.00 in revenue in the last 2 years, but they have spent millions of investor dollars on Executive salaries, finders fees for guys finding them suckers to invest, and attorney fees to keep themselves out of jail. Full disclosure is GREAT.

These guys will only burn up a bunch of money (ALOT LESS then the original EliteXC promotion had backing them) and they will not have the FOCUS on the MMA business to make anything better than another failed promotion... AGAIN !! With funding Europe marketing program, concerts, auto races around the world, and other junk, how much do you think they will have to develop a STABLE mma promotion from a lousy, defunct one?

Just sayin'!

Remember, those who do not learn from History are condemned to repeat it!

Hello Dana..

SOUNDS like Dana is scared..HAHAHAH A

looks like you will have to remove one of you jack ass tomb stones hahahahahahah !

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+1 # LayzieTheSavage 2011-06-22 15:05

^
Daaaang

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+1 # chiggs 2011-06-22 19:51

Quoting LayzieTheSavage:

^
Daaaang

More like Double Daaaang!!

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+1 # chiggs 2011-06-22 19:50

Sounds good and all, but WHO THE FUCK ARE YOU GOING TO GET TO FIGHT FOR YOU?!?!?!!?? Like seriously, between ZUFFA & Bellator, it doesnt leave to much Top Shelf talent to go around, and really, the only way your getting eyeballs and growth, is with a well known roster with Name talent to draw in fans to get to know the up 'ncomers, which just isnt Possible now. Plain and Simple. Yeah, sure there is SOME NAMES,but not exactly Top Flight or World Class in terms of actual talent.
Guess time will tell how they're going to go about things, but Im skeptical on how they're gonna do shit..

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+2 # Guest 2011-07-10 14:12

Shame the interviewer didn't ask Feller why there are so many lawsuits outstanding against him and his companies in Los Angeles and Santa Barbara counties arising out of his failures to pay bills and his employees. The guy's a nut.

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