We all knew that CBS was getting more and more involved with EliteXC’s possibly illegal operations, but according to a recent SEC filing (dug up by the intrepid lads at MMA Payout) they are now officially bankrolling entire events. At least, that’s what they did with the Oct. 4 show after EliteXC told them they were “unable to deliver” the event under the current terms of the agreement:
Accordingly, the Company and CBS agreed to amend the Agreement whereby CBS would assume all expenses for the event and receive all revenue from the event. CBS advanced the estimated event costs according to an agreed upon budget in order for the Company to pay expenses related to the event. Additionally, the Company and CBS waived mutual exclusivity under the Agreement for the Sunrise Event.
So not only is CBS paying the cost to put on EliteXC events, they’re also taking all the revenue and dropping it straight into their coffers. Now, I’m no financial expert, but isn’t this basically the same as the relationship between a pimp and a prostitute? CBS funds the operation. EliteXC puts on the show. Then EliteXC has to give all the money to daddy. In return, maybe CBS buys EliteXC something shiny and pretty at the mall on Sunday.
I know that relationship is as old as civilization itself, but it doesn’t sound like such a good deal if you’re EliteXC.