This is it, I think:
The Secret History of Strikeforce - Part 5: Business As Usual
SCOTT COKER:
The notion that Strikeforce was hemorrhaging money and that's why we would sell is not true. [Zuffa] reached out to us to buy and why would you pay that kind of money for a company that was bleeding to death? Unless you sat in on our excutive committee meetings, you weren't going to know what the numbers were.
There were four of us that made up the committee [Scott, Kenn Ellner, Jim Goddard, and Charlie Faas] and then two additional staff member who sat in [Matt Levine and Andrew Ebel]. We'd meet once a week to plan strategy and basically run the business of Strikeforce.
SCOTT COKER:
In, I want to say, October of 2010, Dana called me personally and said "Lorenzo wants to buy Strikeforce. You guys interested?" And I said I'd talk to my partners.
We ended up meeting in late November and at first it was just dialogue so I was thinking maybe nothing's going to happen. But then after the New Years talks started to really heat up and within sixty days it was a done deal. It went so fast there was no time to find another buyer even if I could have.
I really wasn't interested in [selling], because I knew how much upside potential there was. But at some point it made a lot of sense for the HP guys to make the deal. These guys that invest in the Sharks, the actual finance guys, are from hi tech venture firms.
At the end of the day they're businessmen. They looked at me a couple of times and said they couldn't believe I didn't want to do this. Eventually I said I understand. It was a business deal and I didn't want to be in a situation where I had disgruntled partners.
SCOTT COKER:
The original focus for Silicon Valley Sports and Entertainment was to bring other sporting properties to the Bay Area, to invest in other buildings, and to eventually become another AEG company.
At the end of the day they decided to get back to their core business which was the Sharks. If you look at it they got completely out of anything that didn't have to do with hockey. They are out of the tennis business. They got out of Strikeforce. They are only running the hockey team and that's what they wanted to get back to focusing on. It's no longer [Silicon Valley Sports and Entertainment] it's the Sharks Sports Group.
SCOTT COKER:
I told my guys we should wait another year, but they saw what was on the table right now and it was attractive to them.
I never imagined that the UFC would leave SPIKE. If I'd known that I would have told them to wait and we could have had Viacom as a partner and we would have been on both Showtime and SPIKE.
But it's not true we had to sell. That we had to be saved. That's just not true. We were the only company besides the UFC that was doing arena shows that could do million dollar gates. We had a multimillion dollar deal with Showtime. We were bringing in seven figures a year from sponsorships and over seven figures a year from our international deals. We had a Rockstar deal. Full Tilt Poker. We had Shine International handling the foreign markets. We were a company that was making money on all of our events except for the Fedor fights.
The only reason we got sold is because Zuffa came in and offered to write a big check.