We reported earlier this week about the intentions of Showtime Networks Inc. to host a public auction on November 17 with whatever remains of Pro Elite Inc., including the video library, fighter contracts and other items.
Pro Elite Inc. was indebted to the premium cable network to the tune of 6.3 million dollars, which was accumulated through various loans. Showtime is apparently under the impression that because Pro Elite defaulted on the loans that the company has the right to take possession of its most valuable assets moving forward.
Pro Elite, however, sees it differently. In fact, according to the Media Daily News the organization plans to take legal action to try and stop the auction from happening.
Here's a snip:
"With Showtime primed to sell its assets, a mixed martial arts promoter isn’t going down without a fight. ProElite, which has aired MMA matches on the pay cable network, said Thursday that it plans to block the public auction."
Clearly, there's some behind the scenes work for the two parties legal teams to sort through before we hear anything definitive on this matter.
Since the demise of the Elite XC, the fighters who were under contract with them have been left scratching their heads trying to figure out what to do next. Several of them, including Nick Diaz, have filed a breach of contract complaint in attempts to become free agents after 30 days.
Pro Elite, on the other hand, has denied filing for bankruptcy and claims it will continue on with business as usual in 2009, meaning its fighters would still be responsible for fulfilling their contracts.
The relationship between CBS/Showtime and Pro Elite Inc. does not appear to be so rosy these days. And yesterday there were reports that the California State Athletic Commission had suspended the company's promotional license.
Therefore, if the organization does indeed want to move forward with operations, those are at least two major hurdles standing in their way.
Clearly all this chaos doesn't appear to be leading toward a happy ending for anybody. These two sides could be in store for a long drawn out legal mess.