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We've been on this story for a good part of the year, and as you can assume, we've heard everything under the sun about it. First, we heard that it was being alarmist to claim that FEG was having serious financial problems and our sources were probably just exaggerating. Then the buildings were on fire and imminent death was in sight. Then we weren't being harsh enough towards FEG and painting a truly doomed picture.
All of the stories coming from FEG have been very cautious, and the company has been alarmingly quiet since the last round of shows (K-1 MAX and DREAM.15), where usually there would be press conferences, leaked fights for upcoming cards and rumors in general about upcoming cards. Even Tanikawa, who usually lit up twitter daily has been quiet. The PUJI investment story is really all we've heard from K-1 lately, and all that talked about was an investment bank planning to help out FEG and some Japanese grandstanding about global expansion. Things first looked a bit off when the DREAM in Korea show was called off and there was something about a television deal falling through and FEG having to negotiate a brand new contract.
The planning K-1 World Grand Prix format for this year also mysteriously fell through, with the Eastern Europe GP falling through, the Asia GP not happening and the Final 16 Qualifying Tournament not happening, either. If you look at the graphin the last link, the K-1 World Grand Prix this year has unfolded not as planned, at all. There is supposed to be a K-1 MAX Final 16 show in Europe in September, but the K-1 Official site, which usually lists upcoming shows on the right hand column has no sign of it anymore. The next show listed is the Koshien tournament, which there has been little actual news of to date.
The blog Nightmare of Battle usually steers away from too much business talk and simply promotes the fights, and in an interesting turn posted a news story today that addresses a lot of the recent FEG rumors. FEG has been notorious for stiffing foreign fighters, and paying them only if they return to Japan to either fight again or demand their pay. Well, not anymore, as apparently Japanese fighters are now owed money, which makes things seem a lot more dire. Editor of Kamipro magazine, Saito, is the one who is spilling this info and let's it be known that there are many contributing factors to FEG's financial woes; the Ishii tax evasion scandal, the PRIDE yakuza scandal, Yoshihiro Akiyama's "greasegate" against Kazushi Sakuraba, television stations paying 30-50% less last year for FEG programming and the increase of fight purses. All of these have led to FEG being on the ropes as they are now.
The "unpleasant rumor" that Saito heard is still up in the air, but NOB thinks it could be as bad as the World Grand Prix and DREAM.16 being postponed or canceled completely. The hope is that this is all just alarmist conjecture and everything happens as planned, but with more and more fighters stepping forward upset about their distinct lack of pay or communication from FEG, anything can happen.
If you are a kickboxing fan you better hope that HDNet starts working with Simon Rutz and It's Showtime!!
http://www.headkicklegend.com/2010/8/18 ... egs-cracksQuote:
As you know, several FEG fighters have not been paid their guaranteed fight money. Bibiano Fernandes, Gary Goodridge, Andy Souwer, etc. Japanese MMA magazine Kamipro editor-in-chief Saito talked about the situation yesterday.
Apparently this has been going on since the latter half of the 1st year of DREAM and it’s not only foreign fighters who haven’t been paid on time, it’s Japanese fighters as well.
It also seems like FEG have barely stayed alive these recent years. They were only able to pay fighters due to the money they got from the TV broadcast of Dynamite!! events in recent years.
He reveals some of the reasons for them losing money:
* Due to the K-1 tax evasion in the past (which caused K-1 godfather Ishii to go to jail) additional tax has to be paid.
* The PRIDE Yakuza/Fuji TV scandal and the Akiyama greasing event lost them sponsors.
* Fight purses increasing.
* Decreased money from TV channels (last year it was down 30-50%).
etc.
Basically income has decreased while expenses have increased and it seems like the situation is even worse than we can guess.
The PUJI deal seems to take a while since all kinds of preparations that need time are needed. But it’s very bad right now, no announcement on the schedule of MAX, Koshien isn’t 100%. He says: “I heard a somewhat unpleasant rumor…”.
In short, PUJI is the last ray of hope. If PUJI funds do not come in, it’s “the end”. Another question is if FEG can endure until then. At worst the 2010 World GP and DREAM.16 might be postponed or terminated completely.
http://nightmareofbattle.com/?p=3293
