We are all-but-done writing about FEG's financial woes. At this point what needs to be said has been said, and there is a lot of information on this topic that will never be released to the public. Until FEG makes their move, it is a dead horse that I'm sick of beating. So I've seen some articles and questions floating around that pertain to the future of DREAM and K-1, which of course revolves around television and ownership.
What many people tend to forget is way back to the death of PRIDE, the one-off event known as "Yarennoka" and the formation of DREAM. DREAM is not simple a FEG production. There is a company called "Real Entertainment" that was formed by what was left of DSE, and all of those great video packages on those DREAM events, Lenne Hardt screaming out fighters' names and even lots of the fighters themselves participating in DREAM? Thank Real Entertainment. DREAM is a co-production between RE and FEG, which is why you'll never see DREAM on Fuji TV.
So now, to fully understand how this impacts FEG, I'll hand this over to Mike Hackler of MMA-Japan.com, who did some digging and found out exactly what Real Entertainment's services mean to FEG.
FEG is in debt to Real Entertainment around $7 million USD. Real Entertainment's involvement is a large reason why there are problems getting a TV deal done, due to the fact they still have management from DSE. FUJI has no interest in a television deal, solely for this reason. Real Entertainment is also responsible for paying the fighters (as to what extent, I do not know). Many fighters contracts are with Real Entertainment and not FEG.
FEG is stuck. Ishii owns the rights and the brand names with FEG. This makes reorganizing the company extremely difficult, if not impossible. That said, it has been confirmed that PUJI has backed out of this altogether. As any private equity does, FEG is reluctant to allow for managerial changes to take place. This creates a brick wall for outside investors to get involved.
This beautifully articulates how FEG is stuck in a tough position, and some of the power struggles that are going on during this downtime for K-1 and DREAM. Many people I've spoken to have talked about (off the record, as always) Tanikawa wanting to form a new company and leave Ishii out of the business entirely, but as long as Ishii owns the name "K-1" it will be impossible to break away from his influence. [source]