@Big.Thirsty
Its an interesting turn of phrase "due to financial weakness"
It doesn't really mean anything. So I can't tell if I'm arguing for or against your point.
But lets move to facts:
SVSE states:
Although the news is all positive regarding management,
Forbes also noted that they weren’t profiting (something very common in the NHL), and were hoping to be doing so by 2012. They also point out that the San Jose Sharks brings them $84 million out of the $155 million total revenue accounted for back in 2009 (compared to the $30 million revenue that Strikeforce brings).
Of SVSE’s revenue of $155 million, NHL hockey brings in $84 million. The rest comes from things like a chain of ice rinks, three professional tennis tournaments, a mixed martial arts circuit and an apparel company. Last year the team’s hockey operations lost $5 million, but the profits from the other businesses cut that loss to an estimated $2 million. Gregory Jamison, a Sharks co-owner who’s in charge of day-to-day operations, sees the combined businesses turning a profit in two to three years.
…
In May 2008 SVSE acquired a 50% position in cage-fighting outfit Strikeforce. Since then revenue for the fighting operation has shot up tenfold to an estimated $30 million. Thanks to the credibility and broadcast experience of the Sharks’ owners, Strikeforce’s fights will now move from a 2 a.m. time slot on NBC to prime time on CBS and Showtime. The TV deal, signed in February, would not have happened without the Sharks on board, says Strikeforce founder Scott Coker.
no doubt they tok a bath with the Fedor contract, that was at least 5 Million with basically zero ROI in the couple years leading to the sale
Maybe, but I doubt that was a greater issue than simply that a traditional sports franchise simply brings in MUCH greater revenue right away.
Fedor was a bad financial purchase. BUT, I think its a bit presumptive to pin the fall of a 30 million annual revenue org simply on him. The Fedor Rogers fight was a money maker for instance.
Given the focus on CBS, if you want to point fingers, I'd have to wonder if an unnamed brawl losing a TV deal didn't put more drag than anything.
And with that said, I still don't know what "financial weakness" is.
I don't see any innuendo from hunting around that says Strikeforce was weak. Other than compared to a traditional sports team that is less risky. The UFC is in that same boat too as long as MMA remains relatively niche.