Japanese mega-promoter Fighting Entertainment Group (FEG), once at the forefront of the Japanese combat sports scene, now finds itself buried beneath the rubble of financial woes and clouds of uncertainty.
Founded in 1993, K-1 — under ownership of FEG — quickly became the premiere organization for a hybrid brainchild of striking disciplines, ranging from Karate and Taekwondo to kickboxing and Western-style boxing. The coveted K-1 Grand Prix, held annually, served as World Cup of striking, crowning the world's greatest striker each year. Over a seven year span, some of the most recognizable names in combat sports have been crowned king under the banner: Peter Aerts (3x), Semmy Schilt (x4), Ernesto Hoost (x4), Mark Hunt and Alistair Overeem, among others.
As the saying goes, though, all good things must come to an end. Elaborate productions and debt to its fighters dug FEG into a hole many believe it won't climb out of.
"It's just sad that they've allowed themselves to get to the point where they are," five time Muay Thai World Champion and six time K-1 Grand Prix Finals tournament participant, Ray Sefo, told CageReligion.com. "There's a lot of money owed to a lot of people, including myself. I really don't know how much longer they've got."
The claims of fighters being owed money by FEG have been a recurring theme as of late. In an interview with popular MMA media outlet MMAJunkie.com earlier this year, Japanese superstar Bob Sapp claims to have been owed $50,000 for past appearances by the promotion. Alistair Overeem, who captured the K-1 Grand Prix 2010 Championship — a feat that pays $400,000 to the winner — has not been paid for his victory, which the Dutch striker expressed in an interview with ESPN's MMA Live last month.
According to Sefo, the financial woes don't end there.
"There's at least 12 people who are owed for three to four fights. We're talking about anywhere between $200,000 and half a million dollars per person. That's a lot of money. I'm owed $700,000, you know what I mean?"
Despite the weary state of FEG, financial backing seemed to be the logical step to get the company back on solid ground. Earlier last year, FEG made headlines when it announced a partnership with PUJI and said the investment bank would be procuring $200 million of cash capital to finance ongoing operations.
The figurative nail was driven in the coffin when PUJI pulled the plug on the proposed deal in late 2010, leaving Fighting Entertainment Group a sinking ship
"I hope they get back on their feet and keep producing great shows, but at the same time, you can't keep having shows and keep owing people money. They're just digging a deeper hole for themselves." said Sefo.
2001 K-1 Grand Prix Champion, Mark Hunt, weighed in on the situation, telling CageReligion.com: "Well, I can't really say much. I think fighting has died in Japan. It's really sad to me because I love going to Japan and fighting; the crowds are amazing and the people there are really nice. I went from K-1 to Pride and to Dream and when Pride was bought by the UFC, I think it went backwards. By the time I left K-1, I had already finished fighting and they were having a lot of money problems and things like that. I had a bit of money problems myself, but the fighting in Japan has died pretty badly."
As of writing, K-1 has no future events scheduled, nor has the company made a statement in 2011 regarding future operations.
http://www.cagereligion.com/2011/03/ray-sefo-on-fall-of-k-1-im-owed-700000.html
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