twitter google

Yes, FEG / DREAM / K-1 is really falling off a cliff

You know that old saying, where there’s smoke, there’s fire? Well, the house that Japanese MMA built has been on fire for a while, and finally a few people in Japan are starting to admit they smell smoke. The latest:

Head Kick Legend has been alerted over the past few days that the situation within FEG is possibly dire, as we’ve seen over the past few weeks, there are massive problems with Dynamite!! 2010. Dynamite!! will happen, that much is clear. It looks like at the K-1World Grand Prix on December 11 we’ll start hearing more information as to what will happen with the show. All reports have been that PPV will most likely be the Japanese home for Dynamite!! and HDnet will air it live as well, other than that, nothing. Consider this a blackout, as Japanese PPV is hardly widespread and this event has a long history of being free on New Year’s Eve.

What we have been alerted to is that FEG is looking for buyers. This comes from a reliable source within the company who wished to remain anonymous due to loyalty to the company, but even then, this employee is extremely frustrated and concerned about their future. Ishii has always stated that DREAM would be the first to go if need be, but this source explicitly mentioned K-1.

But what about that Chinese investment firm that was going to jizz money all up in FEG’s cootch? From Fighters Only:

According to our agent source, PUJI has discovered that the Japanese fight-sport market is worth less than initially estimated (or than it was initially told) and $200 million has proved to be a hopelessly unrealistic figure.

PUJI also found that investors who expressed an interest in FEG were nevertheless not willing to part with cash unless some management restructuring was put in place. When this met with resistance at FEG, the parties in question lost interest.

This goes beyond shooting oneself in the foot straight into seppuku territory. To make things worse:

Unable to obtain loans or capital from investors FEG has, according to our souce, gone to the ‘black market’ for loans with which to pay its fighters. This of course raises the spectre of the Yakuza links which killed PRIDE FC, but FEG has always been fastidious about avoiding such links (or at least, having any such links made public). Seeking capital from ‘unofficial’ sources is a very risky move.

Despite the difficulty FEG and PUJI have had in raising investment, there are several interested parties hovering in the wings if the company is put up for sale.

Initial talks have already happened with some of these parties but even then, they are said to have been put off by opaque financial accounts and an absence of, or unwillingness to, go through the due diligence process which is standard practice with the sale of any business.

Unfortunately for FEG, the UFC already bought a Japanese lemon promotion before and I don’t think Lorenzo Fertitta is going to fall for that particular trick again.

  • agentsmith says:

    “jizz money all up in FEG’s cootch”


  • agentsmith says:

    So how’s Sengoku doing financially?

  • DJ ThunderElbows says:

    It feels like this is gonna go bad. Either Zuffa swings in and buys it or Its Showtime buys it. Showtime would prolly ditch the DREAM aspect altogether and Zuffa would try to bring the pain, and end up ripping K1’s rep into pieces.

    @Jawsh – Actually Mike Kogan refuted what Agents and fighters had been telling Walsh, but admitted his knowledge was limited. Why the HKL hate?

  • scissors61 says:

    As long as SHOOTO and DEEP stick around, it’ll be aight.

  • fightlinker says:

    Regardless of what happens to Dynamite (If i was a betting man i’d say it’s a coin toss as to it being on TBS or not), the bigger issue is FEG as a whole. It’s still FUCKED. Sooooo fucked.

  • DW says:

    Not really. Kogan was pissed and I let him say his piece. I work in PR and know that nobody was going to post his side, which was more or less kind of a scramble to not make things look as bad.

    We sez: FEG was looking for a buyer, PUJI backed out and wanted changes in management, Dynamite!! won’t be on TBS.

    Mike sez: He didn’t hear of any change since they inked the contract for Dynamite!! in January, PUJI is ‘complicated’ and won’t give them money, they aren’t looking for a ‘buyer’ just ‘investors.’ Without the investors they are sunk.

    I feel like they aren’t telling him what is going on with TBS because it isn’t final, but like FL said, flip a coin.