While no one seems to be able to get a ProElite representative on the phone regarding the FUBAR situation between them and Showtime, MMA Weekly has a mole or two giving us an idea of how they’re planning on blocking the sale of their assets:
A condition of Showtime’s loan, dated June 18, said ProElite’s assets could be sold or taken over if it did not maintain $550,000 in cash reserves.
“CBS took the gate revenue directly from Miami, and it was contracted to go through ProElite first,” a source said. “If that had happened at the time that (Showtime) called in the note, there would have been enough money that they couldn’t have called in the note. So there’s a legal argument there.
“ProElite’s claim would be that they could have raised the money in that time, but once Showtime called in that note, publicly, it ruined any chances of raising money.”
I dunno, maybe I’m being dense here but if ProElite wanted the money to go through their account, perhaps they should have actually done something to make sure that happened at the time? Making a dumb business decision and then trying to file an injunction on account of it doesn’t sound like a very sound argument to me.
They’re also trying to act like Showtime calling in their debt is what killed any chance of future finance. Too bad everyone and their dog already knew that ProElite was one gasp away from death already. All in all, I give this legal manouver a C-. But who knows what will happen in court and how long it’ll take for a decision to be made either way.