Fighter Contracts and the Strikeforce Sale
by Michael Rome on Feb 5, 2009 6:01 PM EST
in MMA News
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Sources inform Bloody Elbow that a number of fighters waived their right to renegotiate and agreed to transfer their contracts over to Strikeforce as part of the closing of the deal. However, a significant number of fighters chose not to take that position, and will now either renegotiate with Strikeforce or attempt to find somewhere else to fight.
Among those that are not waiving rights to renegotiate are fighters that Zuffa is interested in. Zuffa only has direct interest in a small number of fighters that were contracted to ProElite. These fighters include Gina Carano, Jake Shields, and Robbie Lawler. I can confirm that Robbie Lawler is actually negotiating with Strikeforce, which means he is not a part of the group that chose to waive its rights. I have no confirmation on the intentions of Shields or Carano, but it is almost certain that Carano has not waived rights to renegotiate or look elsewhere. Zuffa interest in Gina is higher than ever now, and her contract at ProElite was outrageously low considering her value.
One big name that nobody has talked about is Kimbo Slice. His contract was worth a lot of money, and it's unclear whether he is still worth that kind of money. He obviously still has name value, and could draw as an undercard attraction. Zuffa certainly has no interest in him, but he does have value.
I spoke with Strikeforce and they were unable to confirm or deny details on contracts, except to say that the issue is very complicated. They did however let me know that there will be a major conference call next week to address these issues.
UPDATE: There are a number of reports saying all the contracts came with the deal. The caveat is that you can put anything in a deal, that doesn't change the fact that personal service contracts are non-transferrable. If someone that didn't waive their rights tries to leave, Strikeforce won't have much of a legal case against them. However, my impression is all the fighters are on good terms with Strikeforce and open to renegotiation.
All you need to know is that Strikeforce is currently renegotiating with a number of people, and wouldn't be doing that if they simply got the contracts as is and didn't have to do anything to legally cement the deals. The best analogy I can think of is to a no-compete clause in California. You can put it in an employee's contract, and they might sign it, but if it ever goes to court it simply doesn't hold water.
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If Zuffa is interested in Carano, it can’t be in WEC. I can’t see Carano’s camp excepting that at as an only option. I can’t see her choosing being on versus over getting more exposure on CBS.
by The Bronzeville Bully on Feb 5, 2009 6:13 PM EST reply actions
Rec'd
Excellent, excellent comment.
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I can see Jake Shields heading to UFC, but it probably be contingent on him being placed in a title match with GSP right away. Seeing that GSP is pretty much close to cleaning out the division, it’s pretty much inevitable that Shields will be on board
by The Bronzeville Bully on Feb 5, 2009 6:16 PM EST reply actions
I understand that
but Shields is interested in fighting GSP right away, otherwise he’ll just re-up with Strikeforce
by The Bronzeville Bully on Feb 5, 2009 6:25 PM EST up reply actions
I don’t think so. He’s said he’s interested in fighting the best. There’s a number of guys he can fight in UFC and make his way up.
I personally think he’ll get crushed by some of the bottom half of the top ten welterweights in UFC. He has questionable standup, he pretty much in the boat with Matt Hughes. If he can’t get the fight to the ground, what does he have?
by The Bronzeville Bully on Feb 5, 2009 6:28 PM EST up reply actions
I somewhat agree with having to be a multi-dimensional fighter but if you are really great at one dimension you can go far . . . even believe you can be a champion in this area. Brock Lesnar is still pretty much the most overbearing wrestling you will face. His stand up and jujitsu aren’t even developed.
Nope
Jake wants to fight GSP right away or he’ll re-up with Strikeforce? That’s simply wrong. He wants to go to the UFC and isn’t expecting an immediate fight with GSP as his first fight in the UFC. He stopped working out at AKA understanding he’ll likely have to fight Fitch or Koscheck once he enters the UFC. And before fighting either one of those two, he may want another warm up fight before that.
I’m pretty sure Lawler, Shields and Carano will end up under the Zuffa banner. The MW division needs Lawler, Carano is too much of a commodity and the WEC could really use her (though I think they should introduce her to the UFC), and Shields, well, he said he wanted to be in the UFC to fight the best. Problem is, I see him having trouble against even the UFC WW gatekeepers. I don’t know, maybe I’m hating on Shields, but he’s never impressed me.
I think views at the UFC are rapidly evolving on Carano. I do not believe if they took her she would fight in WEC.
Well, if she has the option of fighting on CBS for Strikeforce or on VS for WEC, she should take CBS. That’s just a no-brainer.
Confusing argument
What the fuck does it matter what station she fights on if she’s getting a bigger check? She doesn’t get ad revenue shares..
But she will get much bigger sponsorships. So it does make sense for her to choose Strikeforce over the WEC.
"I see him beating Anderson Silva. I see him picking him apart. Him at a 131 years old...(trails off)." - Tito on Belfort at Affliction:DOR
I thought about that too
But she’ll bring viewers to either program, so I don’t see a great descrepency. Couple that with the job security. Not sure Strikeforce can pull this off. I feel like they should’ve stayed chill, but I do hope they succeed at this.
I don’t think that Versus is ever going to get more viewers than CBS, even if it has the exclusive broadcast rights to the 2nd Coming.
"I see him beating Anderson Silva. I see him picking him apart. Him at a 131 years old...(trails off)." - Tito on Belfort at Affliction:DOR
Actually that is very apparent argument. Versus or CBS? What do think the fighter’s managers will suggest as far reaping in sponsorship money?
To Gina, the WEC would be significant demotion. Any other WEC fighters have promotional deals with Pepsi? I’m just shocked how people cannot figure that out. Gina is great for WEC but WEC isn’t great for Gina.
Never said more
You have to weigh other incentives and numbers. It’s not just the station. Let’s be honest; Zuffa is going to get her on the UFC programming one way or another in the face of this. I’m just saying, that’s not the end of the argument..
I sure hope so. Women’s MMA is here to stay, and considering Dana’s comments about how there isn’t enough talent to make a division, well, if they’re thinking ahead, Zuffa would be wise to gobble up as much of the best female talent they can right now, and establish women’s MMA firmly within the UFC culture.
Carano, Lawler, Kimbo, Diaz Will All Be in Strikeforce
Shields I believe has a good chance of staying with Strikeforce due to the CBS exposure and money he gets out of it.
Kimbo could leave, but I am pretty sure Strikeforce would welcome him, since they have tons of mathups for him like Bob Sapp and a future signing of Bobby Lashley.
Diaz already confirmed it.
Lawler and Carano are already renegotiating with Strikeforce.
Only Kimbo and Shields are up in the air.
renegotiating is code. the obligation under the sale is to renegotiate. If they can’t get what they want, then they look elsewhere. renegotiation is not a guaranteed end game.
Carano is going to play UFC v. Strikeforce against each other to get the best deal.
And just as another note before I get into this…you’re way too sure about something she is quite unsure of. You’re projecting hopes as fact.
Will Carano only fight in UFC? I can’t see here management going to WEC and being buried on versus
by The Bronzeville Bully on Feb 5, 2009 6:30 PM EST up reply actions
Seems Agents Are Favorable To Resigning
Lawler’s manager, Monte Cox, would not confirm or deny his client’s consideration for the high-profile position, and it looks positive that Lawler will re-sign a fresh contract with Strikeforce.
"We respect Strikeforce and we believe Scott Coker does a great job," said Cox. "Robbie would like to continue fighting for him on Showtime and CBS."
Carano, who was voted among Yahoo’s Top-10 Women of the Year alongside Hilary Clinton and Oprah Winfrey, is also said to be in renegotiations with Strikeforce.
The contracts of all the key Elite XC fighers, including Kimbo Slice, Gina Carano, Robbie Lawler, Jake Shields and Nick Diaz, have come along with the deal.
He’s right, but it’s a technicality. Wanderlei Silva’s contract “came with the deal” where the UFC bought Pride, but it didn’t mean the deal was done or they owned him. It’s similar to the way that companies can put a non-compete in a contract in California, but if it ever gets challenged it fails.
Only the group choosing to waive is actually cemented to strikeforce in the deal. Strikeforce has first right of negotiation with all of them, but if they try to leave Strikeforce has basically no legal means to stop it because fighter contracts are non-transferrable.
MMAWeekly Update
Reports have indicated that Elite stars Gina Carano, Kimbo Slice, Jake Shields, Robbie Lawler, and Nick Diaz are included in the package. Yet Shields informed MMAWeekly.com via text message that he was "not sure yet" about his participation in the new deal, and Lawler’s manager, Monte Cox, said his fighter was still negotiating with Strikeforce.
"We will negotiate with them and see," said Cox.
According to sources with knowledge of the deal, Strikeforce has also inked a new television agreement with CBS and Showtime, which includes operating eight to 10 live events in the next 36 months.
To add to this, they also signed a 3 year deal with Showtime.
See above post on this. The “deal” says all contracts come with the package. However, since legally the contracts can’t just be transferred, they need to renegotiate. If the fighters try to leave they don’t have a legal leg to stand on, but if they wanted to they could try to make them wait like UFC did to Pride guys.
Yup. I believe one of the key points in this deal is that they spoke with the management teams and they told them if they would resign, and they all mostly agreed.
The only questionable one is Shields, and I think he will sign with SF as well due to having more problems after sitting in the shelf that long.
Every report I’ve seen (including the press release in the eariler article) says some fighter contracts not all. Am I missing something here?
So I guess they’re stopping short of calling it an actual sale of the company, but according to Josh Gross it has been confirmed that Pro Elite and Strikeforce have finalized a transaction for an asset purchase. Here are the details, as of now:
• Strikeforce and ProElite agree to a limited asset purchase, including some fighter contracts and options for additional fighter contracts.
• Strikeforce obtains library footage for EliteXC events.
• Strikeforce obtains licensing of the ShoXC brand name.
• [Pro Elite] Paid off debt to CBS/Showtime.
• Showtime remains a partner with ProElite, same ownership stake.
Moving forward ProElite will not dissolve, as was previously expected. The company will continue to promote MMA events, primarily under the King of the Cage brand, though it still owns the rights to EliteXC-branded events…It has yet to be determined what it will do with other promotional brands.
http://www.cagepotato.com/pro-elite-confirms-transaction-assets-strikeforce
Well technically the sale included ALL the contracts, but that doesn’t mean the fighters have to fulfill them. They can either waive their right to renegotiate, which just sends their contract over to Strikeforce, or for those in demand (Shields, Lawler, Carano, etc.) they can choose to negotiate a new contract with Strikeforce or sign elsewhere (UFC, Affliction, Japan). Most guys will probably choose to just move over but someone like Carano could cause a bidding war and really get a big raise for themselves. It’s basically the same thing that happened when the UFC bought Pride other than the fact that UFC was basically bidding against itself for those guys, they could either choose to sign a new contract with UFC or be stuck fighting in Japan for smaller promotions. This time there are a few more options for the big name guys (and gals).
I haven’t seen an article yet on this that says the sale included all fighter contracts, to the contrary they all say some, select or certain fighter contracts. Strikeforce didn’t aquire them all they only got some of the contracts, the rest of the guys are still stuck with ProElite.
In addition, Strikeforce has also acquired "some" of the reported 100-plus fighter contracts that were left in limbo as Pro Elite attempted to salvage its debt.
The San Jose-based Strikeforce promotion has announced through a press release that it has reached an agreement to acquire select assets from ProElite, Inc. including the library of EliteXC’s fights as well as certain fighter contracts.
Strikeforce and ProElite agree to a limited asset purchase, including some fighter contracts and options for additional fighter contracts
Today a press release by the California-based Striekforce organization confirmed that the company has purchased a significant portion of ProElite’s assets, including some fighters’ contracts and a video library of past CBS and Showtime-broadcast events.
The assets purchased include the library of events under ProElite’s mixed martial arts promotion, EliteXC, and the contracts of up to a third of the ProElite athletes.
Now Strikeforce is looking to salvage what value still remains in the promotion, including its tape library and certain transfereable fighter contracts. Names of the fighters acquired in the sale were not revealed, but more than likely will be soon.
Coker said he did not purchase the contracts for all of the estimated 80 fighters under Elite XC deals, but that all the key names came with the deal, including Kimbo Slice, who still holds the record for the most-watched MMA match ever in North America in a CBS match last year.
Also confirmed as part of the deal were the country’s most popular female fighter, Gina Carano, lightweight stars Nick Diaz and Eddie Alvarez as well as Elite XC middleweight champion Robbie Lawler, and welterweight champion Jake Shields.
Elite XC’s heavyweight champion, Antonio Silva, would not be part of the deal because he is facing revocation of his fighting license for competing in a match in Japan on Jan. 4 while on suspension for failing a steroid test on July 26. In that match he won the vacant championship against the late Justin Eilers.
and even here on BloodyElbow:
LOS ANGELES, CA. – In a transaction signaling the dawn of a new era in the world’s fastest growing sport, world championship mixed martial arts (MMA) organization Strikeforce®, has acquired certain fighter contracts from ProElite, Inc, the parent company of former Strikeforce ® co-promoter, Elite Xtreme Combat (EliteXC).
Too bad about Lawler though, watching him kick Bisping’s ass would’ve been pretty sweet.
by Derek Suboticki on Feb 5, 2009 6:52 PM EST up reply actions
I Put The Rumored April 11 Card Here
http://www.bloodyelbow.com/2009/2/5/750792/strikeforce-purchases-proe
Radach, Smith, Diaz, Thomson, Shamrock.
The UFC should really go after gina. Give her an introduction fight on a PPV, then have her fight cyborg at UFC 100
Josh Thomson vs K.J. Noons Being Discussed for LW Title
April 11 on Showtime:
Frank Shamrock vs TBA
Josh Thomson vs (KJ Noons Rumored)
Scott Smith vs Benji Radach
Nick Diaz vs TBA
Sure fighters can walk away if they want but they would be stuck in a Randy Couture situation. They would be waiting in court trying to get things settled, meanwhile their career would be passing them by.
I expect all these fighters mentioned to be in Strikeforce fulling a contract before given the option to move on.
I hope Strikeforce
hasn’t overpaid for EXC. That would be the dumbest of dumb moves. I really don’t see what the value in the company is aside from the CBS contract (which i’m sure lets CBS get out whenever they want).
The video library is worth next to nothing.
The brand name isn’t really worth much…
I just want to see...
Alistair AND Grimm fight ANYONE at this point
Contributing Editor - BloodyElbow.com - SBNation's mixed martial arts headquarters.
by Brent Brookhouse on Feb 5, 2009 9:39 PM EST up reply actions
Good point. I really want to see Overeem in the UFC but that is kind of up in the air for now. A year ago HW was UFC’s weakest division, now they have Brock, a rejuvenated Frank Mir, up and comers Velazquez and Carwin, and other top 10’s like Big Nog, Couture, and Gonzaga. If they added Overeem to the mix they would be really stacked.
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