Update: Armageddon FC on Dragon’s Den Recap

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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.

The Intro

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”

The Bidding

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 Deal

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)

28 Responses to “ Update: Armageddon FC on Dragon’s Den Recap ”

  1. canadx says:

    was good presentation. Heit and Owen are a class act making it the best Canadian mma biz. Smart not to bill themseves as ufc 2!

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  2. Priest says:

    I checked it out, and i thought that they did an outstanding job selling the AFC product.

    Congrats to darren, and jason, they did a great job of putting MMA in canada in a great light.

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  3. Jamie Locke says:

    I thought it was an excellent presentation, congrats to Jay and Darren for their score!

    I wonder when we’ll see the changes that these new partners bring to the table, sounded like Jim plans on taking this to the US.

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  4. Serge says:

    i missed the show. where can find video?

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  5. Jason Heit says:

    Thank you to everyone out there who supports MMA and the Armageddon Fighting Championship!

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  6. Thanks for the recap… stupid PVR recorded it but won’t play the episode… /sigh.

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  7. Cody Rempel says:

    For those who missed it… here is a link to the episode on CBC’s website!

    http://www.cbc.ca/dragonsden/videos.html?ID=1835217273

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  8. Darren Owen says:

    Fast forward to 35:00 mins in, it makes you watch a few commercials first.

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  9. Robin Black says:

    Way to go Darren nice job

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  10. harry balls says:

    Woot!

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  11. Priest says:

    Hey darren, and jason, we hope to see you guys expand into the windsor market sometime in the future.

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  12. DeViLBoY says:

    good choice about bringing in the heavyweights to fight… the fact that one guy was 6’5 and the other was 6’3 was impressive in the eyes of the dragons. They kept talking about the size and how fight the fighters were… if you brought in 2 lightweights standing at 5’10 it prolly wouldnt of had the same effect.

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  13. Paveldouche says:

    Good luck to the Darren and Jason.

    It is great to see quality MMA being put on by stand up guys.

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  14. Brian says:

    While they didn’t embarass themselves and put on a nice pitch. The blatant lies of them being the largest Canadian MMA show on the west coast and that Misha Cirkunov is a #1 prospect in Canada with his sterling 3 – 1 record really won’t get them far. I will assume like many other dragons den deals that this one didn’t really go through after the show.

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  15. Sean McManus says:

    I watched it and thought Darren, Jason, Misha and Brock all did a great job. Brought some great exposure for them as well. I really hope the deal went through for them. The business sense and experience that comes with those two involved is priceless…thumbs up guys.

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  16. canadx says:

    what is with this brian guy? Is it jealous? Look, they brought in two guys as props in return for their publicity– sounds fair. The 2 fighters seemed ok with it. geez, give it a rest.

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  17. Darren Owen says:

    Brian, at the time Misha was 1-0 and I think anyone who knows Canadian MMA knows he was and is the top 205 prospect in the country. What are the other promotions based on the Westcoast (B.C.) that are more successful than us? At the time of filming the UFC had not even gone into Vancouver yet.

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  18. MMA Rocks says:

    Can’t believe Herjavec first offered you 55K for 40%. Good you turned him down. Seconds later you got a much better offer 80K for 30%

    Also can’t believe some of the dragons turned you down because the fighters could move to another promotion or the lack of “assets” they put it – facepalm. Shows you how much they know about the nature MMA.

    What exactly is Global Entertainment? Does it only broadcast CHL games? It’ll be interesting to see how Armageddon FC will fit in. Maybe you’ll attract more US fighters?

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  19. DeViLBoY says:

    Well technically the dragons are right, there is a lack of assets. “The nature of MMA” doesnt count as an asset. When it comes to an MMA promotion the only real assets that could be sold off in bad times would be fighter contracts, video library, and brand name. I doubt you’d cover your losses with those assets.

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  20. canadx says:

    Evaluation of a biz is really black magic so its very hard to get into a meaningful debate- especially with a new company (read low vaue) in a field with explosive growth (read high value. Afc put the value at $550,000 (55000 x 10) and the dragon investors put it at approx $270,000.

    At this stage, its fair to say truth lies between those two judgements.

    The sad thing is Montreal To and Vancouver and Shaw have elected to go with UFC. Typical Canadian politics.

    However TV rights are open for AFC and AFC is well positioned with strong biz partners so the future looks good. Some of the AFC fighters have real potential and the core of the biz (rep amoungst those who who know/participate)is good.
    Comments?

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  21. Jason says:

    Interesting about the Boston Pizza brand comment… dunno how many times I’ve seen UFC PPV’s advertised at BP Lounges…

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  22. Anonymous says:

    Does anyone else find it to be hilariously ironic that Jim Treliving dropped out of the deal after he decided fighting was not a good fit with his Boston Pizza brand?

    This is the same Boston Pizza that hosts UFC PPVs and has numerous of them across the country that are hosting UFC 128 this weekend (http://www.canadastarboxing.com/cstar-barnetwork.htm – a partial listing at the very least)

    Something smells fishy to me.

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  23. canadx says:

    The recording for tv was a year ago but just aired … what? a week ago?

    afc biz is about exposure and biz relationship.
    afc is putting on its 5th show and has stronger media connections now.
    In a wider perspective, the dragon’s show improved their visibility and biz relationships.
    The distance between afc and its rivals is widening and more folks are jumping on the band wagon.

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  24. Darren Owen says:

    Boston Pizza is a franchise and each individual store owner has the choice to air fights or not. Boston Pizza as a national brand is a family restaurant. Besides we don’t care for pizza it’s the Global Entertainment Corp. Where things get very interesting…

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  25. Mr. Darren, I have tried to contact you by email and phone as well but no reply .
    I had very goods thoughts about you before going to send you MMA Gloves but after sending it now I realize that how selfish you are.
    You have to pay us your given order’s total amount and you have already received your goods more than 3 weeks before.
    Even one of our Client Mr. Chris contacted you as canadian but you didn’t reply to him.
    You have a good and wellknown company in Canada and how can you deceive others. But you can not deceive people for long time and one day you definately realize this.
    Have a good day.

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  26. Ryan says:

    This specific episode has been removed, if you go too the CBC website and click on the palyer, it gives you season five and then it goes EP 20, 19, 17″. WTF?! I haven’t seen this and wanted to watch it.

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  27. Ryan says:

    Nobody? Darren?

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