photo courtesy of graciemag.com

A few weeks ago it seemed as though the Fighting and Entertainment Group (FEG) has found its second life. In mid July it was announced that PUJI Capital, a Chinese investment company, had partnered with FEG in hopes of raising the funds needed not only to keep the company going, but to make it a viable and profit producing business venture. The goal the two sides came to is $220 million, a number which is going to take a prominent and risky group of investors to acquire.

However; hope now seems all but lost for the long time fight company. FEG has long been the leading fight promoting company in Japan, running K-1, K-1 MAX, DREAM, and formerly were the heads of the now defunct PRIDE promotion. Although the company has been in decline for many years, 2010 has been particularly challenging.

DREAM 14, originally scheduled to be the company’s first show in South Korea, was cancelled due to many different factors. The company originally re-scheduled a South Korea show from DREAM 17 and again, the show has been cancelled.

United States FEG representative, Mike Kogan, told MMAJunkie that DREAM 16 will be the last show from the promotion in 2010, excluding the year ending Dynamite!! 2010 show.

“Are you asking me if we’re going to be in business after Dynamite? I don’t know,” said Kogan. “It’s very difficult. Obviously, we’re short on revenues, and we need to – besides restructuring – we need to be able to find new sources of revenue.”

Even the K-1 World Grand Prix, which has long been one of the top grossing events for the company was in jeopardy. Scheduled qualifying shows were cancelled and the final six entrants in the 16 man tournament will be selected by fan voting. Rumours are now circulating that the company will turn the grand-prix into a semi-annual event.

K-1 MAX, a popular event featuring the world’s best kick-boxers at the lower weight classes, has finally announced some dates for the rest of the year, including a November 8 final. No word on when the final 16 show will be held.

This unorganized and careless behaviour has come to be expected to FEG, but not on every show they are producing. The company is in dire need of funding if they want to be in business this time next year.

You may be wondering how FEG can be in such trouble. After all, every event they host draws between 8,000- 20,000 spectators. Japanese fight blog, NightmareofBattle, has a good breakdown on why the company is struggling to turn a profit.

* Due to the K-1 tax evasion in the past (which caused K-1 godfather Ishii to go to jail) additional tax has to be paid.
* The PRIDE Yakuza/Fuji TV scandal and the Akiyama greasing event lost them sponsors.
* Fight purses increasing.
* Decreased money from TV channels (last year it was down 30-50%).

Things are certainly looking bleak at this point in time. FEG needs a miracle investment at this point if they hope to stay in business. There are countless factors that the company must overcome and if things go poorly, there may be FEG in 2011. Simply put, this ship is sinking quick, and FEG needs to get their act together and quickly. Without FEG, the Japanese combat sports community will become obsolete.