Art of War Restructuring

Last Friday SUN Sports and Entertainment Inc. (SSPE.PK), the producer of Art of War, announced a financial restructuring, changes in management, and the consolidation of operating facilities. The company now plans to produce events underwritten by strategic partners and major sponsors in an effort to control costs and reduce debt.

This is the latest reminder that as hot as MMA may be based on recent events such as the Budweiser-UFC and CBS-EXC partnerships, it remains an incredibly difficult business to be profitable in as a promoter unless you are Zuffa.