Update: Armageddon FC on Dragon’s Den Recap
Armageddon Fighting Championship MMA comes to the Dragon’s Den on CBC television tonight. For those unaware of the show, entrepreneurs show their products in hopes that the wealthy celebrity venture capitalists (Jim Treliving, Arlene Dickinson, Kevin O’Leary, W. Brett Wilson, Robert Herjavec) will invest in their companies and help them grow. AFC executives Darren Owen and Jason Heit will both be in the hot seat tonight.
Darren Owen starts things off and introduces the company and states that he wants $55,000 for a 10% stake of Armageddon FC. After the Dragons ogle AFC ring card girl Michelle Jeanpierre, Owen then announces MMA fighters Brock Miller and Misha Cirkunov who spar.
Heit announces that the AFC is Western Canada’s most successful MMA promotion, has two events under their belt, and is currently regional in Victoria but looking to expand nationally and internationally.
Owen makes his pitch about MMA growing and people wanting to see quality events. Alrene asks about Misha and Darren states that Misha is Canada’s #1 prospect. Darren Heit admits they are a farm system of the UFC and they would not stand in Misha’s way to go there.
Now the Juicy Financial Details
AFC venue has 3,200 tickets and tickets were $25 – $150 per ticket. Total gate was $65,000 and the gross ross margin was slightly over $30,000. That was before their national TV deal with The Fight Network and two pending TV deals.
Dragon Robert Herjavec pegs the value of AFC between “$300-400,000 maybe. “$250,000 maybe”
Dragon Brett Wilson does not know how to value AFC, so he steps aside.
Dragon Arlene Dickinson is out as its not for her.
Dragon Kevin O’Leary is worried about something happening to fighters, Owen, or Heit. “There are no assets, its just the shows. I’m out,” he says.
Dragon Jim Treliving has Global Entertainment in the US. He started in hockey minor leagues with 6 teams to 8 teams to building arenas. He sees a fit with his business.
Dragon Robert Herjavec steps in and offers $55K for 40%, which is a valuation of $120,000.
Owen states that the UFC just sold 10% for 195 million dollars and they turn down the offer.
Dragon Jim Treliving offers $55K for 25% for doing it and offers to work with them in the US through Global Entertainment.
Dragon Robert Herjavec returns to the bidding and states that if they take Jim Treliving’s deal, he will offer an additional $25K for 5% of AFC.
The two Dragon’s have offered a total of $80,000 for 30% of Armageddon Fighting Championship. Which puts a total valuation of Armageddon Fighting Championship at $267,000.
Heit and Owen accept the offer. Looks like there are four owners of AFC now: Owen, Heit, and two dragons.
UPDATE: Jim Treliving dropped out of the deal after the show. He decided fighting was not a good fit with his Boston Pizza brand. (Source: Financial Post)