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Why You Shouldn't Be Worried about K-1 or DREAM "Dying"

  • Written by Dave Walsh

Sudaharu TanikawaFighting Entertainment Group was formed in 2003, it came from the fallout of K-1 founder Kazuyoshi Ishii's massive tax scandal that left K-1 financially in ruins. The company's public image had also taken a hit, so the only thing to do was change. Fighting Entertainment Group (FEG) was formed, with a former pro wrestling writer, Sudaharu Tanikawa at the reigns. It was implied that the entire organization was put together by Ishii, it was to be the parent company of K-1 and all of K-1's other ventures into combat sports.

It is now 2011 and it looks like Fighting Entertainment Group is ready for the chopping block. Since this initially came out, there have been articles posted with speculation that this "clearly" means that K-1 and DREAM will go the way of the dodo. I've even seen one article go as far as to say that the UFC should swoop in and purchase their assets. I urge you to not give these articles any mind and ignore them, wholesale. The headline that NightmareOfBattle used was enough information as you'll need; "The Event Name Will Be Left, But the Promotion Will Change."

Mike Hackler of MMA-Japan.com uses his business acumen to point out why this is actually the best case scenario:

Now there are many possible scenarios here.  The way I take this comment, is similar to corporations restructuring their operations when taking bankruptcy.  They do so to shed debt, to boost liquidity, and reduce liabilities.  When this is done, the company most likely comes out smaller, yet fine tuned, able to run more efficiently.
FEG is running on a business model that was working ten years ago.  Ten years ago, they were huge.
FEG needs to model themselves after World Victory Road.  They are not what they were ten years ago.  They need to shrink and position themselves in a way that, when and if things take off again, they will be able to grow.

FEG was bloated and signs pointed to bankruptcy for a while now, shooting FEG into the ground, restructuring and coming forward as a new company could very well be exactly what they need to move forward. This would be like if Zuffa fell on rough times, would that mean that UFC would die with it? No, it has too strong of a brand and name value, think of K-1 and FEG like this.

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