EliteXC will be out of business...

I was fairly surprised to see the how close the live gate vs payroll was for the Elite/Strikforce card . To me, it looks like it wasn't even close to being a success. If they continue to pay these fighters in this way, they better have seriously deep pockets, or they will be out of money after a couple more events. Of course there are some PPV numbers that haven't been disclosed yet but I doubt they will surpass the 350k buy rate which would equal $12,250,00.00 (I think that's being pretty generous)

Heres is good comparison to ufc 70 in England (which many people on this forum thought was a bust for the UFC)

UFC 70

Payroll=$843,000 (plus 100k for bonuses) (this included Cro cops $350k and Arlovski's $140k)
Live Gate= $2,600,000
Attendance=14,921
***no PPV revenue Free card

Strikeforce/Elitexc

Payroll=$628,340 (plus undisclosed bonuses)
Live Gate=$721,210
Attendance=9,672
PPV rev unknown at this time

It just goes to show that elitexc is enticing the fighters with big paydays ala (WFA) but will have some trouble trying to get the numbers a mediocre UFC generates and eventually will run out of cash

Im sure theyre aware of the risks theyre taking, but I would think being on showtime could really pay off eventually.

It took Zuffa four years before they started turning a profit.

MMA is a tough business that's why I always laugh when people bitch about the success of the UFC and totally overlook the shit they went through and the profits they sacrificed to keep it alive and get it to where it is now.

true dat...

but I have to say the UFC was not having payrolls of 628k when they first started... this is going to be the downfall of elitexc

I would be willing to bet that Sponsorships paid for most of the fighters purse.

There's a lot of money behind EliteXC. Remember that Zuffa was tens of millions in the red trying to build the UFC and make it a viable business. The UFC is now so profitable that someone else has to try for a piece of the MMA pie, and so far EXC is doing a good job trying to get started.

No ppv numbers were in there. Also wouldn't showtime be paying them money to have it on their channel?

sponsors....of course...the report doesn't state any numbers from sponsors...but I assure you, the UFC makes more in sponsors than Elite, roughly 3 million peeps watched ufc 70 on spike....

they're done

draven...did you buy the PPV???.be honest

ufc 70 was not a bust but the ufc did take a hit. not much so in fighter payment but promotion and production. but if elite is looking to make a profit right now then they will be out of business sooner rather than later but if they have a long term plan they have a shot

Paying Baroni $100,000 was just retarded. He is nowhere near a top 10 fighter.

draven you missed out dude... I actually enjoyed the card and especially the sham/baroni fight more than UFC 72 (of course) But you (and people like you) are the reason elitexc will go out of business

Baroni was a selling point, he did his job

No comprasion to Babalu

Draven...your wrong buddy, It looks like the only way elitexc can make any money is through PPV. so the fact that you didn't buy it but was interested enough to watch them for free, means there were thousands of people like you, which means elitexc missed out on tons of revenue. It will be interesting to see the PPV buys

Strikeforce/EliteXC is doomed.

"I won't be suprised if they did under 100k."

LMAO!!! If they reach 40,000 buys I'll be amazed.

The problem for EliteXC is that the UFC has so many shows now that there's no pent-up demand for MMA.

The UFC's strategy is to expand quickly to create demand, not to build slowly in response to already-existing demand.

The result is that there's no leftover market for EliteXC, even though MMA as a sport is still growing.

The more I think about the economics of the situation, the more it seems to me that other orgs are bound to fail*. Not because they're bad, but because the Dana is using a smart business strategy to keep them down.

[* Edit: "fail" might be too strong of a word. But if they survive, they're still going to be second-tier.]

Strikeforce sold about 8,500 in a 11,500 seat venue. I 'm sure Gary Shaw knows a thing or two about promoting and wouldn't expect ridiculous PPV sales.

But do the numbers: $750k gate; Lets say they do 50% of expected PPV sales, expected sales were around 30k buys, so if they do 15k buys at $15 a pop that's $225k in PPV revenue (PPV was $35, 50% of which goes to the distributer, so I'm playing with safe figures here)

So gross sales for the event was about $1mil, minus disclosed payroll $650k, that leaves $350k hanging. Most of the advertising was part of Showtime's programing advertising deal with their cable/satellite distributers so I doubt Gary Shaw picked up that entire tab. Rent for the venue shouldn't be more than $50k (MAX) considering consession sales 8.5k spectators would bring the venue. I guarantee you Showtime picked up production. In all, Gary Shaw either made or lost about $200k which is absolutely jack shit considering the kind of money he handles in boxing.

dont forget the fighter's bonuses