Courtesy of:  Ingrained Media

K-Swiss the parent company of Form is exiting the Mixed Martial Arts landscape. Form was one of the few companies that had a true endorsement model and activated around the athletes and sport.  According to the companies Edgar filings they bought Form in 2010 for $1.6 million and lost about $3.7 million before tapping out.

From their public filing:

13. Form Athletics
On July 23, 2010, the Company entered into a Membership Interest Purchase Agreement (“Purchase Agreement”) with Form Athletics, LLC (“Form Athletics”) and its Members to purchase Form Athletics for $1,600,000 in cash. Form Athletics was established in January 2010 to design, develop and distribute apparel for mixed martial arts under the Form Athletics brand worldwide. The purchase of Form Athletics was part of an overall strategy to enter the action sports market, however, during the third quarter of 2011, the Company decided to no longer pursue operating in this line of business, as discussed below. Operations of Form Athletics have been accounted for and presented as a discontinued operation in the accompanying Consolidated Financial Statements.

Pursuant to the Purchase Agreement, the Company was obligated to pay additional cash consideration to certain Members of Form Athletics in an amount equal to Form Athletics’ EBITDA for the twelve months ended December 31, 2012 (“Form CPP”). The purchase price of $1,600,000 and the net present value of the initial estimate of the Form CPP was capitalized. The fair value of the Form CPP was determined each quarter based on the net present value of the current quarter’s projection of Form Athletics’ EBITDA for the twelve months ended December 31, 2012. Any subsequent changes to the Form CPP was recognized as interest income or interest expense during the applicable quarter.

The acquisition of Form Athletics was recorded as a 100% purchase and the Form CPP liability was recognized and accordingly, the results of operations of the acquired business were included in the Company’s Consolidated Financial Statements from the date of acquisition. A trademark asset totaling $3,150,000 and goodwill of $539,000, were recognized for the amount of the excess purchase price paid over fair market value of the net assets acquired. The amount of goodwill that was deductible for tax purposes was $507,000 and will be amortized over 15 years.

At July 23, 2010, the acquired assets and liabilities assumed in the purchase of Form Athletics was as follows (in thousands):

Balance at July 23, 2010 Inventories -  $ 39

Intangible assets -  $3,689

Total assets - $3,728

Current liabilities - $18

Form CPP -  $2,110

Total liabilities -  $2,128

Contribution by K•Swiss Inc. - $1,600

Total stockholders’ equity - $1,600

Total liabilities and stockholders’ equity - $3,728

Since Form Athletics began operating in early 2010, operating results prior to the Company’s purchase of Form Athletics were not significant and pro forma information was not materially different than what was reported on the Company’s Consolidated Financial Statements.

14
During the second quarter of 2011, after a review of sales, backlog, cash flows and marketing strategy, the Company determined that its investment in the Form Athletics goodwill and trademark was impaired and recognized impairment losses of $3,689,000 (see Note 5) and reversed the Form CPP liability of $2,110,000, which was recognized as interest income.

A tumultuous weight cut will likely spell the end of Anthony ‘Rumble’ Johnson’s UFC career.

The former welterweight, who twice missed making the 171lb weight limit, bumped up to middleweight to hopefully cure some of those ills. On Friday, Johnson’s body crashed as he tried to cut the weight to make it down to 186lbs, and by weigh in time he had ballooned up to 197lbs.

UFC President Dana White was none too happy about the situation, and on Saturday night in Rio his opponent Vitor Belfort got 20-percent of Johnson’s fight purse, and submitted him to potentially end his UFC career.

Following the fights, UFC President Dana White spoke to Fuel TV about Johnson, and candidly said that this latest weight cutting snafu was probably the straw that broke the camel’s back.

“We are probably going to cut Anthony Johnson,” White said.

Johnson, who seemed exhausted by the middle part of the first round against Belfort, spoke to Fuel TV as well, obviously prior to White making his comments, but he tried to keep things positive following what had to be a devastating turn of events throughout the weekend.

“No excuses, Vitor was just a better fighter,” Johnson said. “I’m not here to make excuses, a fight is a fight. If you’re going to win, you’re going to win, if you’re going to lose, you’re going to lose and he was just more prepared than I was.”

Johnson was hopeful to get a second shot at Belfort according to his statement after the fight, but he might have to fight to keep his job at all.

“I want a rematch,” Johnson said. “But there’s so many great guys at 185, I would just like to keep fighting here. I don’t care who it is, I just want to fight.”

White didn’t slam the door on Johnson’s UFC career on Saturday night, but it’s hard to imagine a scenario where he gets another shot after his latest weight cutting nightmare come to life.

UPDATE: According to a report from MMAJunkie.com who spoke to UFC President Dana White following UFC 142, Anthony Johnson has been released from the promotion.

“Three strikes and you’re gone,” White said.

Johnson missed weight on Friday prior to UFC 142 in Brazil. He previously had two other incidents missing weight when he was competing at 170lbs.

ESPN's "Outside The Lines" published a story done by Josh Gross and John Barr on "the lack of UFC fighter's pay"

Here is the UFC's rebuttal to the ESPN story

BY Mark Cuban | 18 hours ago|

19

Photo courtesy ABC.

Anyone who has started a business has his or her own rules and guidelines, so I thought I would add to the memo with my own. My "rules" below aren't just for those founding the companies, but for those who are considering going to work for them, as well.

1. Don't start a company unless it's an obsession and something you love.

2. If you have an exit strategy, it's not an obsession.

3. Hire people who you think will love working there.

4. Sales Cure All. Know how your company will make money and how you will actually make sales.

5. Know your core competencies and focus on being great at them. Pay up for people in your core competencies. Get the best. Outside the core competencies, hire people that fit your culture but aren't as expensive to pay.

Related: Mark Cuban on Why You Should Never Listen to Your Customers

6. An espresso machine? Are you kidding me? Coffee is for closers. Sodas are free. Lunch is a chance to get out of the office and talk. There are 24 hours in a day, and if people like their jobs, they will find ways to use as much of it as possible to do their jobs.

7. No offices. Open offices keep everyone in tune with what is going on and keep the energy up. If an employee is about privacy, show him or her how to use the lock on the bathroom. There is nothing private in a startup. This is also a good way to keep from hiring executives who cannot operate successfully in a startup. My biggest fear was always hiring someone who wanted to build an empire. If the person demands to fly first class or to bring over a personal secretary, run away. If an exec won't go on sales calls, run away. They are empire builders and will pollute your company.

8. As far as technology, go with what you know. That is always the most inexpensive way. If you know Apple, use it. If you know Vista, ask yourself why, then use it. It's a startup so there are just a few employees. Let people use what they know.

Related: Three Steps for Getting Started in Mobile Commerce

9. Keep the organization flat. If you have managers reporting to managers in a startup, you will fail. Once you get beyond startup, if you have managers reporting to managers, you will create politics.

10. Never buy swag. A sure sign of failure for a startup is when someone sends me logo-embroidered polo shirts. If your people are at shows and in public, it's okay to buy for your own employees, but if you really think people are going to wear your branded polo when they're out and about, you are mistaken and have no idea how to spend your money.

11. Never hire a PR firm. A public relations firm will call or email people in the publications you already read, on the shows you already watch and at the websites you already surf. Those people publish their emails. Whenever you consume any information related to your field, get the email of the person publishing it and send them a message introducing yourself and the company. Their job is to find new stuff. They will welcome hearing from the founder instead of some PR flack. Once you establish communication with that person, make yourself available to answer their questions about the industry and be a source for them. If you are smart, they will use you.

Related: Is Any Publicity Good Publicity?

12. Make the job fun for employees. Keep a pulse on the stress levels and accomplishments of your people and reward them. My first company, MicroSolutions, when we had a record sales month, or someone did something special, I would walk around handing out $100 bills to salespeople. At Broadcast.com and MicroSolutions, we had a company shot. The Kamikaze. We would take people to a bar every now and then and buy one or ten for everyone. At MicroSolutions, more often than not we had vendors cover the tab. Vendors always love a good party.

This article is an edited excerpt from How to Win at the Sport of Business: If I Can Do It, You Can Do It (Diversion Books, 2011) by Mark Cuban

Dr Bob Bridge

Dr Bob discusses treating high level MMA athletes like Bang Ludwig, Joe Warren, James McSweeney, Luke Caudillo, Viny Lopez and many others

Horizon Chiropractic
Thornton, Colorado

303-252-0202

Brilliant interview by Mike Straka with Co-owner and CEO of the Ultimate Fighting Championship, Lorenzo Fertitta.

Lorenzo talks about the UFC's continued plans for international expansion and discusses his friendship with Dana White, which led to becoming one of the sporting world's most powerful figures

Combat Sports Insurance aims to bring medical coverage to all MMA fighters

UFC fighters aren't the only ones with accident insurance these days.

Six months after the UFC parent company announced a program to cover athletes outside the cage, a Tennessee-based insurance company offers a plan that costs a little over $20 a month.

Fighters are not only covered out-of-competition but are eligible to receive compensation for injuries suffered during fights and get a $100,000 life insurance policy, according to Jeremy Augusta, CEO of Combat Sports Insurance.

Augusta, an insurance industry veteran who trains in MMA, started offering the plan one year ago after training partners kept asking him for quotes on health insurance. Most couldn’t afford it.

"When you're a pro getting $200 to show and $200 to win, you can’t pay a $500 (a month) premium," he today told MMAjunkie.com (www.mmajunkie.com).

Much like Zuffa, Augusta battled skepticism when he approached several insurance companies about the possibility of coverage for professional MMA fighters.

"In their head, they were thinking huge guys punching each other and kicked in the head and arms broke," he said. "A couple politely entertained the deal, but none of them were all about it."

Those injuries can and do happen in the gym. They're frequently devastating to the fighter, who not only loses a payday but foots the bill for treatment if uninsured. When compared to the health of the general population, however, there's often no comparison in who's taking better care of themselves.

"They're healthier than 80 percent of the people out there, but because of their hobby and their profession, their premiums are through the roof," Augusta said.

When Augusta chanced upon a pair of employees that worked for a major underwriter at an MMA show, he found a sympathetic ear. He declined to name the company but said it has a well-established accident-insurance policy for non-athletes.

In July, Combat Sports Insurance partnered with upstart MMA promotion Imperial Fighting to cover its fighters. Since then, several promoters have spread word of the plan.

The UFC covers fighters up to $50,000 yearly for costs arising from an out-of-competition accident and carries a $1,500 deductible. Augusta's plan has no yearly maximum and no deductible.

Fighters receive automatic payouts depending on the type of injury, whether it occurs on fight night or between. The payouts are on top of the event insurance required of promoters by the state that range between $50,000 and $100,000 per fighter. It's often possible for a fighter to make more money losing than winning (although probably not advisable).

Of course, all medical claims need to be verified by a doctor or a hospital. But through the wonder of insurance coding, the plan presents some funky fiscal logic.

"The guy who knocked you out is going to get $400 bucks, and you're going to get damn near $1,000," Augusta said.

However, the underwriter's massive client base makes it a win-win situation for the insured and the insurer. Augusta estimated 15 fighters used the policy after a recent event.

"[The insurance company] thinks it's great because the more people that utilize it, the more people who are going to come on board with it," he said. "If you've got 30 guys paying a premium, and once a month one of them has a claim, they're still making profit."

And for fighters without a safety net, it can be a saving grace.

"I've gotten more Christmas cards this year than I ever have in my life," Augusta said

Uploaded by MMAWeeklyVideos on Dec 9, 2011

Muhammad Ali: The Greatest of All-Time

Randy Couture talks about wrestling and the Grappling World Team Trials

GREAT article & awesome MMA insider!

by Jonathan Snowden on Sep 27, 2010 5:23 PM EDT in Business of MMA

Welcome to a series of stories focusing on the business side of MMA. We all love MMA action, the vicarious thrill of men and women doing battle. But the action behind the scenes is almost as fast and furious as anything that happens in the cage. We'll look at the backroom bonus, contract negotiations, and the pay per view bonus later this week. First, in the wake of the Matt Mitrione scandal, let's explore the revenue possibilities of sponsors.

When you're a fighter, everything is for sale. Whether it's a patch on your crotch or the shirt on your back, every piece of visible real estate has value for a fighter who is about to appear on television. The agent's job is to fill that space, maximizing income and building relationships for the future.

How much a fighter is worth to MMA apparel companies and other sponsors varies wildly. A popular fan favorite main event level fighter may make more than $100,000 every time he steps into the Octagon. Top fighters often have a yearly deal with a company like Tapout or Bad Boy, some that even pay them six figures annually. Big stars can also clear $10,000 per appearance in a night club or at a car dealership. The top deals are negotiated by a handful of managers/agents, notably Dean Albrecht (Quinton Jackson, Frank Mir, Miguel Torres, Demian Maia, Joe Stevenson), Robert Roveta (Denaro Sports) and DeWayne Zinkin (Chuck Liddell, Forrest Griffin, AKA).

Main eventers without that kind of fanbase are likely to pocket $10,000 or less from their t-shirt sponsors. That number shrinks significantly as you move down the fight card. When you reach the untelevised undercard, many fighters are lucky to get $1,000, and are often paid by getting free gear and other perks from their sponsors.

For a fighter with guaranteed television exposure, income possibilities often depend on who your agent is. Many fighters, even big names, miss out on opportunities because they use family, friends from the gym, or unscrupulous young agents who don't know the game as well as old hands. One mid level fighter saw his sponsorship money jump from just over $5,000 to more than $40,000 when he switched management.

"It's not what you're worth," one prominent agent said. "It's what you can negotiate."

Each agent has a different approach. Some build brand loyalty and their fighters become closely associated with a particular company. Others, most prominently Chuck Liddell and Zinkin, negotiate everything on a fight by fight basis. While it's easy to pick out Liddell's iconic mohawk, it's harder to remember his t-shirts. Unlike athletes of his caliber in other sports, like Michael Jordan and Tiger Woods with Nike, Liddell isn't associated with any brand. While per fight payouts may have been maximized, his success might have been at the expense of a long term relationship.

The main pieces of potentially lucrative real estate on a fighter's body are the t-shirt and the shorts. The T-shirt deal varies dramatically. Apparel companies want to see their brand and their product on television. That's why Matt Mitrione, who recently complained about receiving only $5000 in sponsorship revenue for his UFC 119 fight with Joey Beltran, wasn't in the best position to maximize income.

"He was on SPIKE TV," an MMA agent with several UFC clients told me. "While that's great exposure, it often doesn't come with a walkout. The fighters are usually shown for the first time in the cage. That's a harder sell."

A televised walk in to the arena, literally minutes of free advertising to a captive audience of hundreds of thousands of viewers, can increase t-shirt revenue for a televised fighter who isn't yet a star from $1,500 or $3,000 all the way up to $10,000. For sponsors, television time is critical. It's why you see fighters scrambling to put their t-shirts on after the fight. Several times fighters interviewed in the cage after a win by Joe Rogan have forgotten to put on all their gear. The result is the loss of thousands of dollars when penalties in your contract are invoked by a furious sponsor.

Fight shorts aren't a commercial product that companies are able to sell to the general public. What they are is a billboard for advertising that could appear in front of a television audience for up to 25 minutes. Short space is sold in four pieces: the crotch, the butt, and both thighs. The top agents have been able to score more than $30,000 per patch, but that's rare. For a television fighter who isn't a major star, the crotch and butt space are worth from $500-$2,000. Each thigh ranges from $250-1,500. Savvy agents can sell these spaces at a premium if they pitch it right.

"I represent one guy who is a great wrestler," an agent told me in confidence. "When I sell the space on his butt I tell the company 'Look, his ass is going to be in America's face for 15 minutes while he pounds on this guy.' That's incredibly valuable space."

Jonathan Snowden is the author of Total MMA: Inside Ultimate Fighting and the upcoming The MMA Encyclopedia. Follow him on Twitter and right here at Bloody Elbow.

Arizona State University Sun Devil....and NCAA Wrestling Champion.....Anthony Robles inspires

Great piece by MMAWeekly.com's Damon Martin as he catches up with MMA agent Malki Kawa about the fight biz

UFC Brass discuss the UFC's Accidental Insurance Plan for contracted fighters

UFC head honcho Lorenzo Fertitta talks to Ariel Halwani about the UFC, MMA business and bringing the UFC to broadcast television

Uploaded by fightmagazine on Nov 22, 2010

Motivation:  I Am A Champion.....

Great interview by The Fight Nerd with American sports treasure....Dan Gable on the importance of wrestling & how it shapes leaders.