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The latest spin from everyone on UFC’s purchase of Strikeforce
By Zach Arnold | March 18, 2011
JOSH BARNETT: “I want to fight in the biggest stage that they can possibly give me and I know that Dana has done a big-time job with the UFC in terms of creating that stage and if Dana White is who I got to get in bed with to be the best fighter in the world and to be in the biggest opportunity for MMA, then I’ll do it and I’ll do it easily. At the end of the day, I’m not here to have a grudge with somebody. I’m here to fight.”
GILBERT MELENDEZ: “It’s cool, man. I’m a big fan of UFC and I love Strikeforce. Strikeforce is a great organization but it’d be cool to have the marketing machine of the UFC behind it.”
JAKE SHIELDS: “Of course there’s a few negatives, you know. Some of the guys who aren’t on the good side of Zuffa and Dana, guys like you know Paul Daley and Josh Barnett who are, you know, who are some good fighters. They’re kind of in a situation that’s a little tricky and so, obviously, on that end it’s not the best but overall for my friends in Strikeforce I think it’s going to be a better thing.”
JOSH THOMSON: “It’s different, you know, something that caught me so off-guard. I think I’m still in a little shock because I think everyone just assumed that Strikeforce was doing well, which I think it was. It just, um, you know when you have two or three different partners involved to keep the business going, you know, when the partner has the most shares in the company wants out, you got nothing to say.”
FABRICIO WERDUM: “My first goal now is to get a title from the Strikeforce Heavyweight GP. That’s one thing that I promised to Scott Coker and that’s my first goal. So after I get this belt, I will be behind the UFC champion to get the other belt and be the #1 in the world and show to everybody that I’m the #1 (fighter) in the world.”
MIKE STRAKA: “There’s a lot of theories out in the blogosphere about why you purchased it now and were the UFC the only suitors for Strikeforce. One of the theories is that Pro Elite, who brought us Elite XC, was one of the people trying to buy it and I would position it and say, well UFC probably bought it not because they were afraid of Pro Elite but they were afraid of Pro Elite bringing the sport back another 10 years. How do you respond to that?”
DANA WHITE: “I would agree with (you) 1 million percent but, uh, I didn’t know of any other company out there trying to buy it but I wasn’t on that side of the deal. Um, who knows? It could have been, it could not have been, who knows? I honestly don’t know the answer to that answer.”
MIKE STRAKA: “I know you are not going to answer this question but if you, from what I understand the purchase price, I won’t even say the purchase price, but I’ve heard. I also heard that it’s less money than you offered Fedor Emelianenko for six fights. Is that true?”
DANA WHITE: “Yeah, I saw some of the numbers floating out there and they’re all wrong, all the numbers are incorrect from what I’ve seen. Heh heh heh. It wasn’t less than what we offered for him. I’ll tell you this — Vadim has to be kicking himself in the ass.”
MIKE STRAKA: “Uh, why?”
DANA WHITE: “Because they should have been in the UFC. They should have come into the UFC when there was an opportunity for them to do it and… they should have got in. I think even for his legacy, you know. If you’re going to get beat, whether it’s getting triangle choked or your face smashed, ast least get it done by the best guys in the world so you don’t lose, you know… listen, they don’t probably don’t care as much about legacy as I do but I think legacy’s important and for the last however-many-years, Fedor hasn’t fought anybody.”
MIKE STRAKA: “If there’s anybody though, Dana, who could fix that legacy for Fedor Emelianenko, it’s Dana White. Would you be interested in giving him fights with Randy Couture and giving him fights that could fix his legacy?”
DANA WHITE: “I don’t think it’s Fedor. You know. I’ve dealt with his management and it’s 100% those guys. So, but the problem is I don’t think you’re ever going to have a situation where Fedor’s on his own, making his own decisions. So, the answer’s probably no.”
****
MMA Supremacy: “Jordan Breen: ‘Zuffa has already installed some of its own people to basically run Strikeforce. So much for “business as usual.” Jordan Breen on Coker’s Pull Now: “Basically none. He’s relied upon for his relationships & business stuff.”
Topics: Media, MMA, StrikeForce, UFC, Zach Arnold | 13 Comments » | Permalink | Trackback |
Didn’t Strikeforce have a handful of people running it? surely they need some help, especially now people are talking about the “Zuffa machine” helping with marketing.
Strikeforce was a shambles at times and would benefit from a little help, especially as Zuffa would have been running less shows than last year with the WEC merger.
1) Josh Barnett will now be forced to face the music with the CSAC. That won’t o well for him.
2) Gilbert Melendez might take a slight base paycut, but if he can prove himself will end up making much more money long term.
3) Jake Shields knows his teams cozy relationship with Strikeforce is over. And his teammates like Nick Diaz are not in a good position as they once were.
4) Josh Thomson will be out of a job with the UFC within 2 years from Zuffa. Too much talent at Lightweight and he is on the downside of his career.
5) Fabricio Werdum and the rest of the Heavyweights in the tournament…. Are all probably fightin for a big UFC contract with the rest being place on typical contracts. So the stakes have been raised big time.
6) What Jordan Breen says is no shock. It’s what anybody who any idea of how this would go down would expect to happen. Coker is being left in there just to be the messenger.
7) mmalogic…. Who knew Strikeforce was selling a month before it was announced… Said that a good percentage of the offer from Pro Elite was with their stock. The UFC’s offer was more money. So the UFC probably paid much less then $40 Million because they had real money to offer.
8. Dana White shows to once again be riht about M-1. They put another company out of business.
Technically Zuffa put Strikeforce out of business. They had up to three other suiters so if Zuffa hadn’t outbid everyone they would probably have been purchased by someone else.
As for the Stratus (Pro Elite) offere: it was $20 million including some stock options to purchase SVSE’s half of Strikeforce plus a commitment of $20 million in investment to vet Coker to sign off on the deal. That $40 million overall, some problably in worthless stock, for 50% the company.
I don’t know what Zuffa paid, but the just north of $40 million being reported by Hunt, Meltzer, and Breen seems realistic.
The portion going to Coker would have no impact on SVSE’s decision. So if they were offered even 25 in cash…. It’s a better offer they would have taken. Not to mention those stock options had to he looked at as being worthless.
Hunt & Breem have no true inside source as to the value of the sale. So they are just taking what other companies offered as a starting point. What they fail to realize is that stock options and Coker’s portion have no impact on the value of this sale.
Everybody close to the sale has basically laughed at the trotted numbers and said: “You would be surprised at what we got this for.”. Indicating that they got a steal considering what they got in the purchase….
1) Video Footage on EliteXC and Strikeforce.
2) 20 or so valuable contracts.
3) Showtime contract that allows them to make sure nobody else has a chance for up to a year.
SVSE went with the sure bet. They went with the cash. They gambled enough on SF while they owned it. They obviously didn’t want to gamble on the value of stock options over the next 3 years.
“SVSE went with the sure bet. They went with the cash. They gambled enough on SF while they owned it. They obviously didn’t want to gamble on the value of stock options over the next 3 years.”
That’s 100 % true. But that wasn’t the point of my comments. You claimed that Fedor put Strikeforce out of business – at least as a separate promotion from Zuffa. The more plausible answer is that Zuffa, with the help of SVSE, put them out of business. All reporting has been that they were a viable promotion, even from Mr. Logic, with up to three other suitors looking to purchase them. The only reason they’re gone is because Zuffa outbid everyone else.
You also made the claim that the final sales price will be much less than $40 million. That may be true, but I doubt it.
Dave Meltzer [Discussing the $40 million sales price]: “According to information from a source familiar with negotiations from the start, it may have been slightly higher, but it was in that range”
Loretta Hunt: “According to a strong source, UFC purchased Strikeforce for about $40 million, which included some debt repayment”
Both of them, and both claiming sources, report that it was around $40 million. That sounds realistic for according to Josh Gross Pro Elite offered to “ buy out Coker’s Silicon Valley partners for $20 million and another $20 million investment in capital”. Even with some crappy stock options that’s a lot to invest in one-half the company.
Of course, Dana White could settle this by simply telling us what they paid,
I have to work on my internet etiquette. My writing “you claimed” sounds like I’m attacking you. I’m not trying to, just pointing out what I think is the more likely scenario.
Dana two part question, why is are you so great and is it true that the UFC can stop world hunger?
#jokefail but seriously the questions transcribed were beach balls
“One of the theories is that Pro Elite, who brought us Elite XC, was one of the people trying to buy it and I would position it and say, well UFC probably bought it not because they were afraid of Pro Elite but they were afraid of Pro Elite bringing the sport back another 10 years. How do you respond to that?”
You’re a moron, Mike Straka.
This interview was an embarrassment for journalism.
Here’s an interesting scoop/rumor for you guys that I just heard from someone who is decently in the know – and I think its starting to gain steam.
MLSE – the parent company of the Toronto Maple Leafs, the Raptors, FC soccer, its own tv channels and the ACC, was recently announced as being for sale by its current owners…apparently Zuffa is a very interested potential suitor.
Sounds like Jones dominated.
I guess he wasn’t ready for a title shot :p
Dana saying Fedor hasn’t fought anyone just further proves what a complete jackass he is.
It’s a disgrace that he’s the most recognizable face in the sport, and a main reason UFC has never been on network TV.
And no ION doesn’t count. Bodog was on ION it’s not a major network.
Those guys don’t have to cave into the demands of this egomaniac.