Mike Kogan on FEG's Future: "We need investment money. That's the bottom line."

Sometimes for the full truth to come out you have to poke and prod, stir the pot and put it all out there, and that has been how the financial situation with FEG has been in the past few months. Last week we reported (and were much maligned and misquoted for sensationalism's sake) that DREAM.16 was it for the DREAM series "for now" and that there was still nothing solid for K-1 MAX this year, with the clock ticking. Many took this to mean that DREAM.17, which was never formally announced, but only hinted at in a January 2010 "DREAM road map" by FEG, was canceled. Much like any other site who values sources, we did our best to deliver the information at hand and give our commentary on it. Much like things work, the commentary was misquoted as fact and the internet went wild with speculation, again.

This all comes when a giant, such as FEG, decides to sleep during a time of distress. Fighters are coming forward to discuss FEG's financial problems, and with just how quiet FEG has been, the speculation has ran rampant without a single hose to put out the fire. After having their hand forced to comment, at least in the states, FEG's Mike Kogan elaborated on what he told us last week to MMAJunkie. Instead of satiating the demand to know that everything will be aright with everyone's favorite Japanese promotion, the outlook Kogan gave was brutally honest, which we've come to know and respectfully expect from him. Mike Kogan told MMAJunkie that essentially what is happening is PUJI is auditing FEG's operations right now, to see if the business is viable.

I'm not trying to push a sole HKL agenda right now, but instead shed light that this is how investment banks work, and while many sighed a sigh of relief when the PUJI deal was announced, us who have been around the block with Japanese promotions and followed them, as well as understand some of the finer details on investment banking saw this for what it was;

My best guess is that after a year PUJI sees if FEG has a true future to make money for them, and if not they will continue on a scaled back course for the remainder of their promise and then dump FEG into the dust.     

Mike Kogan, who is no fool speaks along the same lines in this interview, and speaks that they very badly need this investment money from PUJI to continue on into 2011.

"Are you asking me if we're going to be in business after Dynamite? I don't know," he said. "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.

"You need money to make money, so to speak. I don't sit in on the financial meetings. But it's very challenging.

"We need investment money. That's the bottom line."

Kogan remains optimistic, but realistic for the future of FEG, which to me seems realistic. If you are a fan of Japanese MMA you might need to begin brushing up on your DEEP, SRC and SHOOTO soon, because the fight landscape in Japan seems like it could change at any moment. Maybe instead of worrying we should just enjoy what we can get for now?