EliteXC: Only Mostly Dead, Holding Fighters' Contracts

by mythbuster on Nov 3, 2008 9:18 AM EST Comment 31 comments

091307_001-740756_medium Fronted by Kid Nate.

From Graciefighter.com:

EliteXC representatives have vowed that they will continue operations and will be planning a show in early 2009. Most of the major EliteXC fighters under contract have been notified.

Lead counsel for the organization has informed us that contrary to popular beleif, EliteXC has not filed for bankruptcy and has merely scaled down their staff.

This will be a setback for all EliteXC fighters currently under contract as they will be unable to fight in other organizations without the express written permission of EliteXC. Barring a judicial ruling, EliteXC fighters could be hampered from signing with another organization.

However, Nick Diaz will be able to fight in Japan if terms are agreed upon with a Japanese organization due to a previous agreement with EliteXC. It is assumed that Eddie Alvarez will also be able to fight in the Far East without any EliteXC restrictions due to his previous contract with Dream.

Did they win the lottery, or are they childishly using the fighters as pawns against the existing MMA organizations? Strange news, any way.

Photo via www.the-newsroom.com

The FanPosts are solely the subjective opinions of Bloody Elbow readers and do not necessarily reflect the views of Bloody Elbow editors or staff.

0 recs | Comment 31 comments | Share

Story-email Email Printer Print

Comments

Legal posturing to tie fighters up in their contracts with the organizations, just so they have some assets to sell.

by JujiGatame on Nov 3, 2008 9:26 AM EST reply actions 0 recs

Wasn’t a fan of the UFC holding fighter’s contracts hostage (Arlovski), not a fan of this either.

by pr0cs on Nov 3, 2008 9:44 AM EST reply actions 0 recs

this is such skanky bullshit. I think Showtime is the bad actor here, they’re trying to get their money back out of EliteXC.

by Kid Nate on Nov 3, 2008 9:44 AM EST reply actions 0 recs

How is it sleazy if Showtime intends to do MMA, and they’re the ones entitled to those contract assets? Releasing these fighters would render those agreements worthless.

This seems like another step in the direction of a ZombieXC

by smoogy on Nov 3, 2008 3:05 PM EST up reply actions 0 recs

If Showtime intends to do future MMA events with those contracts then perhaps they should of contacted the fighters to let them know that by now. You think any of these guys are going to be happy to work for Showtime now that they are getting jerked around with this kind of crap?

by who me on Nov 3, 2008 3:18 PM EST up reply actions 0 recs

This seems odd after Monte Cox came out and said that there was a warranty clause in some of his fighters contracts that allows them to get out of it if EliteXC doesn’t have the funds to cover it. If I recall correctly, once Cox files notice, they have a month to respond. Should be interesting to see how this all falls out.

by LiuLang on Nov 3, 2008 10:09 AM EST reply actions 0 recs

Yea, I don’t think saying they’re going to put on fights in 2009 is enough to meet that clause.

If they have enough cash sitting around to pay out all of these contracts why don’ they put on the card they were supposed to next week.

Lawler, Diaz, and Alvarez’ contracts on their own should have enough in fight purse over the life of the contract to put on the show on the 8th.

by Phildo on Nov 3, 2008 10:18 AM EST up reply actions 0 recs

They’re going to have to prove that they have the assets to put on a show if challenged by any opposing legal team (counsel for either a fighter or a rival organization looking to promote a fighter). They will fail.

In related news, Jared “$kala” Shaw has been telling anyone within earshot that he and “his boys” definitely were not responsible for egging Seth Petruzelli’s house this past Halloween weekend.

by dropkick101 on Nov 3, 2008 10:28 AM EST reply actions 0 recs

Wow

Its sad, there just doesn’t seem to be anything below the EXC management.

by Razreshat on Nov 3, 2008 10:30 AM EST reply actions 0 recs

Someone kill Billy Crystal before he saves this thing.

by SamCupitt on Nov 3, 2008 10:50 AM EST reply actions 0 recs

EliteXC said “to blave,” which as everybody knows means “to bluff.”

by Brett Jones on Nov 3, 2008 2:16 PM EST up reply actions 1 recs

Do you hear that, Fezzik? That is the sound of ultimate suffering. My heart made that sound when the six-fingered man killed my father. The Man in Black makes it now

by mythbuster on Nov 3, 2008 3:38 PM EST up reply actions 1 recs

I have to agree with Cesar on this one. i think PE is just trying to keep their turd polished and see if they can get a higher price for their assets.

http://eliotmarshall.com/

by BJJDenver on Nov 3, 2008 11:07 AM EST reply actions 0 recs

Did they or didn't they

Lead counsel for the organization has informed us that contrary to popular beleif, EliteXC has not filed for bankruptcy and has merely scaled down their staff.

Time for somebody to get the paperwork. That can easily answer the question of whether they filed for bankruptcy or not.

"It's like a flying knuckle sandwich." --Rogan
"And many men have eaten it." -- Goldy

by thetakeover on Nov 3, 2008 11:27 AM EST reply actions 0 recs

It's the Org that Wouldn't Die!!!

Ever tried. Ever failed. No matter. Try Again. Fail again. Fail better. -Samuel Beckett

by themachiavellian on Nov 3, 2008 11:28 AM EST reply actions 0 recs

Zombielitexc

by Chris Nelson on Nov 3, 2008 11:49 AM EST up reply actions 0 recs

I would totally pay to see that

Undead MMA? Cue Vincent Price voice: How do you armbar that which has no arms? How do you choke that which does not breathe?

Ever tried. Ever failed. No matter. Try Again. Fail again. Fail better. -Samuel Beckett

by themachiavellian on Nov 3, 2008 1:51 PM EST up reply actions 0 recs

lol

by mythbuster on Nov 3, 2008 2:08 PM EST up reply actions 0 recs

They are trying to liquidate as much as they can…

Their main asset are the fighter contracts.

by mmalogic on Nov 3, 2008 11:59 AM EST reply actions 0 recs

EliteXC Never Die!

Everyone was saying that they folded, but they never filed for bankruptcy.
That’s what I was wondering. No one ever provided any proof.

by MMASuPreMaCy on Nov 3, 2008 1:22 PM EST reply actions 0 recs

I mean, all of the people with any experience running a fight org being told they didn’t have a job, Lappen calling fighters and managers telling them the company was closed, and calling the NSAC and telling them that the November show was canceled and that they were finished. I can’t believe people jumped to the conclusion that the company was dead.

This is a last ditch effort to try to be able to sell the contracts.

They are just incompetent. They told everyone they were done, but didn’t realize their contracts had a clause saying that if they couldn’t keep up their end of the bargain everyone would become free agents in 30 days. The fighter contracts are their only tangible asset, this is nothing more than a last ditch effort to hold onto those long enough to sell them, but I doubt it will work.

by Phildo on Nov 3, 2008 1:49 PM EST up reply actions 0 recs

Or Showtime. People forget that Showtime owns a part of ProElite.

by MMASuPreMaCy on Nov 3, 2008 3:06 PM EST up reply actions 0 recs

Pretty sure Showtime wishes they could forget it =)

by iiowyn on Nov 3, 2008 3:06 PM EST up reply actions 0 recs

I wondered when you would get in on this, lol.

Unfortunately, i think they opened their own mouths to much, so we all see what is happening.

I truly wish EXC would have survived, but they just had the wrong people running the company.

http://eliotmarshall.com/

by BJJDenver on Nov 3, 2008 2:31 PM EST up reply actions 0 recs

=Holding Fighters Hostage

This could get ugly..

by Blackout612 on Nov 3, 2008 1:39 PM EST reply actions 0 recs

ProElite couldn’t even afford to fund their last show, thus relinquishing all revenue from the event to CBS since they were kind enough to provide financing for said event. This is all about capturing the value of their fighter contracts. CBS/Showtime is apparently done with them. Without a savior with deep pockets, there will be no shows in 2009 from the EXC we’re familiar with.

by Cannon Jacques on Nov 3, 2008 1:42 PM EST reply actions 0 recs

So out of the blue right after some fighters find a way to get out of their contracts we get an announcement that they aren’t filing for bankruptcy? Sounds like a ploy to keep these guys stuck as ProElite assets. At least the IFL had the decency to release their fighters before they got tied up in the legal wrangling. Even in death ProElite shows themselves to be real sleazebags.

by who me on Nov 3, 2008 1:58 PM EST reply actions 0 recs

But will it work?

If I read what Cox and Diaz’ team are saying correctly, they can get out of the contracts if Elite can’t prove that they have enough cash to pay out the rest of their contracts.

I highly doubt they’d be willing to find someone to throw that much money to just sit in an escrow account and wait for them to get their shit together.

by Phildo on Nov 3, 2008 2:00 PM EST up reply actions 0 recs

Work? No it won’t work that way but it may tie the contracts up in court for a couple months while ProElite tries to dump them as assets to someone who can pay them out.

by who me on Nov 3, 2008 2:16 PM EST up reply actions 0 recs

That’s what I meant by work, I don’t know if this will really buy them the time.

I’m trying to interpret the letter Diaz sent them alleging the breech of contract, and it seems like they have to put enough money to pay Diaz the entire value of his contract into escrow within 30 days or he is a free agent. Saying, “we’re going to put on fights in 2009” doesn’t seem to do that, but I’m not sure how it will all work out.

by Phildo on Nov 3, 2008 2:38 PM EST up reply actions 0 recs