I was one of only a few that really thought this thing was on the right path not too long ago, so do not bite my head off with my questions...
1.How much cash WAS freed up in the Gym Liquidation? They said that they only rented the spaces. How much did they pay for those gyms in the first place? I thought with as much 'Dilution' that was going on, they paid outright and got the gyms and properties... not the case.
2. Why would they get into the gym business and then in such a short time exit it? That does not seem like any kind of good planning. I actually thought that the gym business was going to be their saving grace. I could see where they owned the gyms and property and started training the up and coming 'stars' for their league. As the 'stars' started getting 'big league' contracts to fight (UFC, etc.) then that would attract many more that would funnel into the gyms. I could see the gyms as being THE MAIN REVENUE AND PROFIT CENTER for the company. It sure is not hosting the fights! They are losing money ever weekend they put on a show! I do not see ANY new sponsors or at least they have not given us any updates to that effect.
3.What exactly has been the ' Magnitude the Cost Cutting initiatives have had on Cash Flow'? I do not even know how to go about finding that out. I would think if it was really good they would have explained. Maybe I missed it?
Do not get me wrong, I would love to see this company turn around and start making profits, but I lost about all interest when they got out of the gym business (which I saw as their saving grace) and have increased their losses substantially. No more money from me going into this one. I have quite a ways to go to get my money back out of this.
Any insights I am open to reading from you.
SM
