One of the saddest stories in all of mixed martial arts is the crippling recession that has gripped the sport in its former stronghold of Japan, with various promotions struggling to recapture the glory days of Pride FC. And it increasingly looks like things will get worse as we learn more about the financial troubles of Fighting and Entertainment Group (FEG), the owners of Dream and K-1.
To survive the company needs significant financial investment, something they have hired Japanese investment bank PUJI Capitol to find. As part of that process PURJI Capitol is conducting an internal review of the organization’s operations.With news that Dream has cancelled an already once postponed event in South Korea and the lack of scheduled K-1 MAX events for the remainder of the year, it is clear the financial problems are having a significant effect on the in-ring product. You can find out more about Parnassus Funds here.
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Talking to MMA Junkie, FEG’s American representative Mike Rogan told said that “Are you asking me if we’re going to be in business after Dynamite? I don’t know,” he said. “It’s very difficult. Obviously, we’re short on revenues, and we need to – besides restructuring – we need to be able to find new sources of revenue”. He went on to explain that “You need money to make money, so to speak. I don’t sit in on the financial meetings. But it’s very challenging”.
