wso-andreas
11-06-2008, 17:04
IFL financial woes cause show cancellation - Mixed Martial Arts - MSNBC.com (http://nbcsports.msnbc.com/id/25077267/) wrote:IFL financial woes cause show cancellation
The International Fight League has canceled its August 15 event in New Jersey, indicating a further sign of financial problems that could ultimately cripple the company.
The group has lost over $31 million since its creation in 2006. When it was introduced to the MMA world, the IFL and its creators, real estate developer Kurt Otto and comic book publisher Gareb Shamus, hoped to lure in more families by using a ring instead of a cage and limiting the amount of blood by banning elbows. But despite trying to differentiate themselves from the industry leader, the IFL has struggled to build a fanbase.
Larkin stressed that the announcement didn't necessarily mean the end of the company, saying the IFL was hoping to restructure and didn't think it would be able to do that and still put on a strong event.
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"We’re closely watching the cash flow, what’s coming in and what’s going out," Larkin said. "We're trying to extend the IFL until we find that investor or partner that wants to be part of this.”
Larkin said the company would be open to discussion as far as selling fighter contracts or allowing fighters to sign elsewhere, but that such scenarios would be dealt with on a case-by-case basis.
"We consider fighters our primary asset," he said. "If we let them get cherry-picked, we won't have much left but a couple of desks and a phone."
Among the best known fighters in the IFL are welterweight champ Jay Hieron, lightweight Chris Horodecki, and light-heavyweight champ Vladimir Matyushenko. This year, after scrapping a team-based approach, the organization has featured a camp vs. camp format including well-known groups like Miletich Fighting Systems, Team Quest, and Renzo Gracie Jiu-Jitsu.
The IFL is just one of several MMA groups that has had recent cash flow difficulties. Even EliteXC, which recently televised the first primetime network MMA card, lost over $27 million last year.
In 2007, the IFL became the first MMA organization to appear on broadcast TV when it signed a deal with MyNetworkTV. The group seemed to reverse course by emphasizing the sport's violent roots, drawing criticism from MMA fans and TV critics. The show lasted a year on MyNetworkTV.
In February 2008, the group signed a deal with HDNet to air its live events. Two shows aired, and the August 15 event was scheduled to be the final one under the current deal. At that time, the organization's new "Hex" ring, a six-sided ring, was expected to debut. IFL programming also airs on Fox Sports Net.
"I came on six months ago, to a company that was unique and taking risks and chances," said IFL commissioner Jay Larkin. "It was also a company in trouble. With all our changes, we haven’t been able to turn that around into a viable product people want to see."
Larkin believes there are still doubts about the viability of MMA past the success of UFC, but that it might take strategic partnerships to give groups a chance.
"I think that there is a halo effect over the UFC and there are fans of the UFC who are not necessarily fans of MMA, but they appreciate the UFC product and not necessarily the quality of fights," Larkin said. "They have good nights and bad nights like everyone else. There is an element of the MMA fan base that feels like if it’s not UFC, it’s crap. It makes it very difficult to operate in that kind of environment."
The International Fight League has canceled its August 15 event in New Jersey, indicating a further sign of financial problems that could ultimately cripple the company.
The group has lost over $31 million since its creation in 2006. When it was introduced to the MMA world, the IFL and its creators, real estate developer Kurt Otto and comic book publisher Gareb Shamus, hoped to lure in more families by using a ring instead of a cage and limiting the amount of blood by banning elbows. But despite trying to differentiate themselves from the industry leader, the IFL has struggled to build a fanbase.
Larkin stressed that the announcement didn't necessarily mean the end of the company, saying the IFL was hoping to restructure and didn't think it would be able to do that and still put on a strong event.
Story continues below ↓advertisement
"We’re closely watching the cash flow, what’s coming in and what’s going out," Larkin said. "We're trying to extend the IFL until we find that investor or partner that wants to be part of this.”
Larkin said the company would be open to discussion as far as selling fighter contracts or allowing fighters to sign elsewhere, but that such scenarios would be dealt with on a case-by-case basis.
"We consider fighters our primary asset," he said. "If we let them get cherry-picked, we won't have much left but a couple of desks and a phone."
Among the best known fighters in the IFL are welterweight champ Jay Hieron, lightweight Chris Horodecki, and light-heavyweight champ Vladimir Matyushenko. This year, after scrapping a team-based approach, the organization has featured a camp vs. camp format including well-known groups like Miletich Fighting Systems, Team Quest, and Renzo Gracie Jiu-Jitsu.
The IFL is just one of several MMA groups that has had recent cash flow difficulties. Even EliteXC, which recently televised the first primetime network MMA card, lost over $27 million last year.
In 2007, the IFL became the first MMA organization to appear on broadcast TV when it signed a deal with MyNetworkTV. The group seemed to reverse course by emphasizing the sport's violent roots, drawing criticism from MMA fans and TV critics. The show lasted a year on MyNetworkTV.
In February 2008, the group signed a deal with HDNet to air its live events. Two shows aired, and the August 15 event was scheduled to be the final one under the current deal. At that time, the organization's new "Hex" ring, a six-sided ring, was expected to debut. IFL programming also airs on Fox Sports Net.
"I came on six months ago, to a company that was unique and taking risks and chances," said IFL commissioner Jay Larkin. "It was also a company in trouble. With all our changes, we haven’t been able to turn that around into a viable product people want to see."
Larkin believes there are still doubts about the viability of MMA past the success of UFC, but that it might take strategic partnerships to give groups a chance.
"I think that there is a halo effect over the UFC and there are fans of the UFC who are not necessarily fans of MMA, but they appreciate the UFC product and not necessarily the quality of fights," Larkin said. "They have good nights and bad nights like everyone else. There is an element of the MMA fan base that feels like if it’s not UFC, it’s crap. It makes it very difficult to operate in that kind of environment."