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Jon Jones vs The Canadian Immigration

 

If you missed it UFC Light Heavyweight Jon “Bones” Jones plead guilty to  Driving While Intoxicated (DWI) today.  For those of you that have never traveled to Canada you might not realize that a DWI is considered a “serious” offense.  I praise Mr. Jones for taking responsibility and handling this matter as expeditiously as possible.

The effect of this conviction go beyond the sentence that will be handed down by the judge.  As an example, if you are traveling to Canada, before you are allowed to enter the Country you will be asked  “Have you ever been convicted of a crime?”  When your answer is “yes”, you will likely be turned away.  If you have been convicted  of a DUI or DWI within the last ten years you will not be allowed entrance.  According to the Canadian Criminal Code driving while impaired is a serious crime.  The attitude is supported by most Canadian citizens.

The common person with a conviction may be considered rehabilitated “after” a certain period has expired from the completion of the sentence imposed.  You must apply for rehabilitative status and demonstrate your rehabilitation.  The usual post conviction waiting period is five years.  After this five-year waiting period the person must submit the following documents:

  1. An application form IMM 1444E
  2. A passport size photograph
  3. A copy of your passport data pages
  4. An FBI police certificate
  5. A state police certificate
  6. Copies of court documents indicating the charge, section of law violated, the verdict, and sentencing
  7. Proof of completed sentences, paid fines, court costs, ordered treatments, etc.
  8. Copies of the text of the law describing the offence.
  9. Detailed explanation of the circumstances surrounding the offence
  10. Three letters of reference from responsible citizens.
  11. A non-refundable processing fee of $180 USD

Further information can be found at Citizenship and Immigration Canada’s webpages, Overcoming Criminal Inadmissibility and Overcoming Criminal Inadmissibility – Frequently Asked Questions.

It might be possible to get a temporary resident permit to enter Canada prior to rehabilitation, but this is up to the passport control officer’s discretion and requires a $200 (Canadian) fee.  The temporary resident permit is meant to allow entry for exceptional circumstances, which would include reasons of national interest or on strong humanitarian or compassionate grounds, which a UFC event is not.

It remains to be seen how the Jones conviction will effect the UFC plans.

Jason Genet


K-Swiss Taps Out of MMA

K-Swiss the parent company of Form is exiting the Mixed Martial Arts landscape. Form was one of the few companies that had a true endorsement model and activated around the athletes and sport.  According to the companies Edgar filings they bought Form in 2010 for $1.6 million and lost about $3.7 million before tapping out.

From their public filing:

13. Form Athletics
On July 23, 2010, the Company entered into a Membership Interest Purchase Agreement (“Purchase Agreement”) with Form Athletics, LLC (“Form Athletics”) and its Members to purchase Form Athletics for $1,600,000 in cash. Form Athletics was established in January 2010 to design, develop and distribute apparel for mixed martial arts under the Form Athletics brand worldwide. The purchase of Form Athletics was part of an overall strategy to enter the action sports market, however, during the third quarter of 2011, the Company decided to no longer pursue operating in this line of business, as discussed below. Operations of Form Athletics have been accounted for and presented as a discontinued operation in the accompanying Consolidated Financial Statements.

Pursuant to the Purchase Agreement, the Company was obligated to pay additional cash consideration to certain Members of Form Athletics in an amount equal to Form Athletics’ EBITDA for the twelve months ended December 31, 2012 (“Form CPP”). The purchase price of $1,600,000 and the net present value of the initial estimate of the Form CPP was capitalized. The fair value of the Form CPP was determined each quarter based on the net present value of the current quarter’s projection of Form Athletics’ EBITDA for the twelve months ended December 31, 2012. Any subsequent changes to the Form CPP was recognized as interest income or interest expense during the applicable quarter.

The acquisition of Form Athletics was recorded as a 100% purchase and the Form CPP liability was recognized and accordingly, the results of operations of the acquired business were included in the Company’s Consolidated Financial Statements from the date of acquisition. A trademark asset totaling $3,150,000 and goodwill of $539,000, were recognized for the amount of the excess purchase price paid over fair market value of the net assets acquired. The amount of goodwill that was deductible for tax purposes was $507,000 and will be amortized over 15 years.

At July 23, 2010, the acquired assets and liabilities assumed in the purchase of Form Athletics was as follows (in thousands):

Balance at
July 23, 2010
Inventories

$ 39
Intangible assets

3,689

Total assets

$ 3,728

Current liabilities

$ 18
Form CPP

2,110

Total liabilities

2,128
Contribution by K•Swiss Inc.

1,600

Total stockholders’ equity

1,600

Total liabilities and stockholders’ equity

$ 3,728

Since Form Athletics began operating in early 2010, operating results prior to the Company’s purchase of Form Athletics were not significant and pro forma information was not materially different than what was reported on the Company’s Consolidated Financial Statements.

14
During the second quarter of 2011, after a review of sales, backlog, cash flows and marketing strategy, the Company determined that its investment in the Form Athletics goodwill and trademark was impaired and recognized impairment losses of $3,689,000 (see Note 5) and reversed the Form CPP liability of $2,110,000, which was recognized as interest income.


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