Elite XC goes out of business

Huge breaking story in the world of Mixed Martial Arts. Elite XC and its parent company Sherdog are going out of business and filing for bankruptcy protection. This is a big loss for the sport of MMA and an apparent result of a slow economy and falling advertising rates. It will be very interesting to see how this pan's out and where big names like Kimbo end up going. Here's ESPN.com's story:

The parent company of the EliteXC mixed martial arts circuit is closing its doors for good, according to multiple reports. Sherdog.com reported that according to T.J. Thompson, an executive at ProElite Inc., he was informed that the company would close for good this week and would file for bankruptcy protection. And Sports Illustrated, on its Web site, reported that ProElite told its employees and fighters on Monday that it was shutting down, effective immediately, according to multiple sources.

Sherdog also reported that according to numerous sources, an EliteXC card scheduled for Nov. 8 in Reno, Nev., has been canceled. According to the report, Joey Villasenor, who was scheduled to fight Robbie Lawler for the circuit's middleweight title on the card, was informed Monday it had been scrubbed.

ProElite did not return calls seeking comment, according to the reports.

The shutdown follows an EliteXC card televised by CBS on Oct. 4, in which the circuit's biggest star, Kimbo Slice, suffered a 14-second TKO at the hands of a relatively unknown last-minute replacement, Seth Petruzelli. That bout is under investigation by the Florida State Athletic Commission, following comments Petruzelli made after the fight suggesting that he had been promised monetary incentives to trade punches with Slice, rather than employ a more technical game plan.

Showtime Networks, which owns a 20 percent stake in ProElite, on Sept. 17 filed a notice with the U.S. Securities and Exchange Commission announcing its intention to enter negotiations to purchase the company outright.

But SI.com reported that according to a source inside ProElite, those negotiations failed and ProElite's funding disappeared, forcing it out of business.