Affliction's Counter-Suit of Fedor Emelianenko's Management Calls M-1 Global a Sham
by Kid Nate on Jun 1, 2010 2:03 PM EDT
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Loretta Hunt reported on Friday for Sherdog:
Affliction Entertainment filed a countersuit against M-1 Global, the management and promotional group that reps Fedor Emelianenko, in Los Angeles federal court on Thursday, asking for declaratory relief on the validity of a "Consultation Agreement" signed into by the two parties in April 2008 -- allegedly under false pretenses. Affliction is also asking the court to rule that M-1 Global return $2.4 million in consulting fees it was paid in conjunction with two Affliction MMA events the two groups co-promoted in July 2008 and January 2009.
In the filings obtained by Sherdog.com, Affliction claims it, under M-1 Global's directive, entered into two separate agreements with Emelianenko and the Holland-based organization to procure the services of the world's No. 1 heavyweight as a headliner for three events.
According to Affliction, the California-based promotion inked a "Fight Agreement" that tendered $300,000 to Emelianenko per bout he participated in, while Affliction was directed to pay the remaining $1.2 million of Emelianenko's $1.5 million asking purse per bout directly to M-1 Global under the auspice of a "Consultation Agreement."
"The reason for the two agreements, Affliction was told, was for personal tax implications," reads the countersuit.
Affliction claims no consultation was ever agreed upon or given by the M-1 Global group for the two events.
"Because the consulting agreement was a sham contract designed to avoid tax obligations, M-1 had no obligations to perform pursuant to the consulting agreement and therefore rendered no performance under the consulting agreement," alleges Affliction's filings.
This is a counter suit on Affliction's part. Our own Michael Rome broke down the original M-1 Global suit against Affliction when it was filed, including the details revealed at that time regarding the M-1 consulting agreement:
- M-1 was to provide consulting on all the following topics: International bout consulting, international television, fighter scouting, location for future bouts recommendations, television-related opportunities, international sponsorships, and bout tourism.
- M-1 was also required to fully cooperate and assist in the advertising and promotion of each fight.
- In exchange for these consulting services, Affliction agreed to pay M-1 a consulting fee of $1,200,000 per fight.
- Affliction was required to promote the M-1 Global brand through promotional activities including: Articles in event programs, M-1 Global's logo incorporated into Affliction advertising, M-1 logo recognition with event advertising, public address announcements during the bouts, the airing of M-1 videos announcements during events, and the creation and sale of co-branded M-1 and Affliction event posters.
I believe there is still one more consulting agreement out there based on my reading of M-1's lawsuit, but Affliction did not disclose it here. Just counting these two agreements, Fedor Emelianenko received $300,000 per fight while M-1 Global received 1.2 million. Fedor Emelianenko is a 20% owner of M-1 Global.
All in all, this is an ugly mess that looks like it will continue for some time. The more we learn about the details of entering a "partnership" with M-1 Global the worse it looks.
Fightlinker comments:
M-1 has been working it's ass off for the last year trying to prove that it's a valuable co-promotional partner that brings all sorts of positive things to the table. That claim is going to take a serious hit as Affliction has just sued them this past Friday, basically calling bullshit on the idea that M-1 did anything real other than shelter Fedor's money from taxes.
...
Keep in mind though that this is part of Affliction's counter-suit against M-1, who are trying to keep Affliction on the hook for that third Fedor fight that never happened. Affliction is liable to make things look as negative as possible, even if they just paid M-1 the money and told them to stay out of the way. For a less biased opinion on the situation, I'd say go ask Scott Coker what he thinks of M-1 as a promotional partner. But he'd just give you a nervous smile and talk about how great everything is even after they just fucked him (and themselves) over hardcore by skipping April's CBS show.
Also see these older Bloody Elbow posts:
- Dana White in Talks With M-1 Global - "I Want Fedor, I Like Mousasi Too"
- Is Fedor Emelianenko's Management "a Monster" That "Demands Blood"?
- The Kayfabe of Dana White, James Toney, Fedor Emelianenko, and Strikeforce
- The Fedor Era Is Finished: Fedor Emelianenko's Ridiculous Demands Mean He'll Never Fight the Best Again
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These guys are screwing Fedor hard.
Got the Summer hatin on me cus I'm hotter than the sun. Got the Spring hatin on me cus I ain't never sprung. Winter hatin on me cus I'm colder than ya'll; and I will never I will never I will never Fall.
The mat is my church, the ground is my heaven, Jiu-Jitsu is my religion. And once you hit the ground you're in my world. My world is like the ocean, I’m like a shark and most people don't even know how to swim - Draculino
Fedor is screwing Fedor hard. I dont understand why people think hes some kind of unwilling pawn in all this hes a grown man who makes his own decisions
by brazary on Jun 1, 2010 12:58 PM EDT up reply actions 15 recs
Maybe he is bad at math...
Okay Fedor you can have:
a) 1.5 Million dollars
or
b) $300,000 + 20% of 1.2 million dollars ($240,000) = $540,000
You would think he knows what’s going on… There is obvioulsly more to it than we know.
actually… $300,000 is 20% of $1.5 million. His fight purse might have been his 20%.
Ricky Hatton came closer to beating Manny Pacquiao than Marquez did to beating Floyd.
-SC
by The Lethal Haze on Jun 1, 2010 1:17 PM EDT up reply actions
In mild defense of M1 Global
I doubt Fedor on his own, or with a more conventional manager, would have been able to negotiate the level of contracts M1 has negotiated for him. 1.5 million per fight with co-promotional rights is pretty damn good. I recall Zach Arnold talking about how Fedor was getting completely screwed over when he was with Russian Top Team.
Without M1, Fedor would be in the UFC making 3-5k per fight with some PPV points, but with sacrificing all the likeness rights and other stuff that UFC guys sacrifice.
by Trust Doesn't Rust on Jun 1, 2010 1:48 PM EDT up reply actions
This is affliction we are talking about though.
Fedor Emelianenko $300,000 def. Andre Arlovski $1,500,000
Josh Barnett $500,000 def. Gilbert Yvel $30,000
Vitor Belfort $200,000 ($80,000 to shown, $120,000 to win) def. Matt Lindland $225,000
They also paid Tim Sylvia $800,000 to fight Fedor. They threw money around.
I’m sure fedor would have only gotten 3k a fight, just like Brock.
People always forget that Randy resigned because Zuffa offered Fedor more money than Randy was making, and that was years ago.
Randy made more than 1.5 mill a fight back then, he’d be doing just fine if he had signed with zuffa then, and he’d be doing fine if he signed with them now.
Zuffa is evil only paying 3-5k for their headliners.
For the record
Couture made 1.186 for UFC 68 and 1.127 for UFC 74
To me it’s simple, it’s sucks for the fans that Fedor is used as a bargaining chip, it’s sucks for the promotion that m-1 is working with that they use him as a bargaining chip, and it’’s great for m-1 (and Fedor) that they can use him as a bargaining chip.
by John Nash on Jun 1, 2010 2:50 PM EDT up reply actions 1 recs
I’ll take this even further, we as fans complain (that’s what we’re good at) that UFC pay is crap, and that there should be more options for fighters and better pay. When Fedor holds out for these things and MANY other fighters are able to benefit off of him as he does this?
What percentage of former professional athletes have a singular source endorsing a car dealership they don’t own? NFL is the worst of these. Fedor is a business owner that still owns pretty much everything related to his accomplishments and name. Who else can say that? This “equity” has monster potential as others continue to popularize MMA.
Well, you are partially wrong natyong.
Fedor doesnt own any of the Pride video library footage that helped him garner his status. In my eyes, that’s a big negative to him and M-1 Global. Until Fedor signs in the UFC, he wont be able to use any of those highlight reel KO’s and subs. M-1 Global is a European MMA Promotion, but, in all reality, the US market is where they want to be. Fedor is smart, why else did he fight Hong Man Choi and Zulu? Eventually, the Fedor brand is going to tarnish.
If Russia attacked Turkey from the rear, Do you think Greece would help?
Fedor owns 20% of M-1 Global and he wants it to grow, yes M-1 gets the majority of the money from his bouts but he most likely sees that as investing money into his own company for the future. I’m sure he was quite aware of where the money was going and why. M-1 may be screwing him as an investment but I would be willing to bet that he agreed to it up front to help the company grow as opposed to being in the dark about it all.
Nothing is that bad sir.
Got the Summer hatin on me cus I'm hotter than the sun. Got the Spring hatin on me cus I ain't never sprung. Winter hatin on me cus I'm colder than ya'll; and I will never I will never I will never Fall.
The mat is my church, the ground is my heaven, Jiu-Jitsu is my religion. And once you hit the ground you're in my world. My world is like the ocean, I’m like a shark and most people don't even know how to swim - Draculino
by Patrick Tenney on Jun 1, 2010 1:04 PM EDT up reply actions
Oh god, the nightmares are returning. Why, WHY? Won’t somebody stop these monsters… Indy didn’t deserve that.
Got the Summer hatin on me cus I'm hotter than the sun. Got the Spring hatin on me cus I ain't never sprung. Winter hatin on me cus I'm colder than ya'll; and I will never I will never I will never Fall.
The mat is my church, the ground is my heaven, Jiu-Jitsu is my religion. And once you hit the ground you're in my world. My world is like the ocean, I’m like a shark and most people don't even know how to swim - Draculino
by Patrick Tenney on Jun 1, 2010 1:13 PM EDT up reply actions
In other news
Water is wet, Bas is crazy and Tito cant buy a hat at Lidz in the mall.
by clydeftones on Jun 1, 2010 12:57 PM EDT reply actions 4 recs
The pic is funny...
No one in that photo should have anything to do with Fedor or MMA. The WAMMA belt is the cherry on top.
Be a man, not a child-Phil Anselmo
by ANance on Jun 1, 2010 1:00 PM EDT via mobile reply actions 4 recs
complete truth
We have a saying back home that if your coming on, COME ON!!!!
That's an awesome fail...
…by a strange looking dude.
Be a man, not a child-Phil Anselmo
by ANance on Jun 2, 2010 3:45 AM EDT via mobile up reply actions
Hey, could all those M-1 supporters that were going on and on about their powerful international promotional skills chime in?
Seriously, where did those jerks go? Cause their shtick never stopped being funny.
Don't believe a word I say, I don't train BJJ.
I blog at TangleBones - you should follow me on Twitter here.
If you like it, you should put a rec on it.
by jemaleddin on Jun 1, 2010 1:03 PM EDT reply actions 1 recs
Seriously, where are those guys?
Hello? Anybody?
Don't believe a word I say, I don't train BJJ.
I blog at TangleBones - you should follow me on Twitter here.
If you like it, you should put a rec on it.
The "unkown" guy in between Fedor and de la Hoya is Apy Echteld isn't it?
"Sometimes hype just ain't enough." - Jens Pulver on his win over BJ Penn
"unknown", rather.
"Sometimes hype just ain't enough." - Jens Pulver on his win over BJ Penn
by lowellthehammer on Jun 1, 2010 1:09 PM EDT up reply actions
The best thing about M1 is.....
Soon as Fedor’s career is over, so are they. They know it, so they are trying to setup their retirement plans before he gets too old, gets a bit slower, gets caught and loses.
It’s only about 2 years way at the MOST.
Frustrating
As a fan it appears that this train of thought is the biggest reason we don’t get Fedor in the fights we want to see. If he loses M1 has its gravy train derailed. We end up watching what might be the greatest fighter ever being squandered.
ALL OF YOU LISTEN TO MEE, DON'T DISTURB HERE, I WILL CALL POLICE CATCH YOU, DON'T COME TO MY BANGOLOW HOUSE, UNDERSTAND, O.K. I HATE ALL OF YOU.
Cronenberg ftw!
"...ride life straight to perfect laughter,
it's the only good fight there is."
by dancingChicken on Jun 1, 2010 1:49 PM EDT up reply actions
Rec'd
Both those actors were amazing in that movie … and interestingly, neither was actually Russian.
After the Toronto Film Fest premiere a woman walked up to Viggo and started speaking Russian to him. She was that convinced that he was actually fluent in the language.
I hope the sequel holds up..
Cronenberg is doing a sequel to it?
Ehh….. I’m not sure I want that to happen; Cronenberg has been on fire lately but I don’t think Eastern Promises needs a sequel.
Got the Summer hatin on me cus I'm hotter than the sun. Got the Spring hatin on me cus I ain't never sprung. Winter hatin on me cus I'm colder than ya'll; and I will never I will never I will never Fall.
The mat is my church, the ground is my heaven, Jiu-Jitsu is my religion. And once you hit the ground you're in my world. My world is like the ocean, I’m like a shark and most people don't even know how to swim - Draculino
by Patrick Tenney on Jun 1, 2010 2:53 PM EDT up reply actions
Apparently Paul Webster has gotten Cronenberg, Mortensen, and Steve Knight on board for a sequel to start shooting late this year. But Cronenberg also mentioned doing a Violence trilogy with the first two parts being A History of Violence and Eastern Promises, so maybe it won’t be a true sequel but really the third part of the trilogy. Who knows?
Yeah It was a great movie.
So good in fact, that I didn’t mind having to see Viggo’s naked balls lol.
So a fat pig can’t call another fat pig a fat pig?
…
Damn i want some bacon now.
by Goonisis on Jun 1, 2010 1:56 PM EDT up reply actions 4 recs
I just don't get it
Call me naiive but I just don’t get what the hell M-1 really does. Consulting? Consulting for what? All they ever seem to do is bitch about money and withhold Fedor from fighting. What does Strikeforce actually get out of them?
And he's hardly a prize pig
He’s sold less PPV’s cummulatively than David Loiseau, Gabriel Gonzaga, Matt Serra and Ken Shamrock. He also attracts less viewers on CBS than Matt Hammill has drawn on Spike TV.
From a business standpoint it ain’t worth it.
by Mat Parker 116 on Jun 1, 2010 2:24 PM EDT up reply actions
Why would you put Ken Shamrock on that list? The guy was the MMA gold standard for a decade.
by Jonathan Snowden on Jun 1, 2010 4:04 PM EDT up reply actions
Yeah, You could argue that the whole Zuffa resurgence of the UFC was kicked off when Ken Shamrock returned to fight Tito. Without him who knows what would have happened…
He’s been the UFC’s top draw throughout his tenure with the company. Through three eras. It’s a pretty unimpeachable record.
by Jonathan Snowden on Jun 1, 2010 4:35 PM EDT up reply actions
Not only was Ken the draw for the biggest pre-Zuffa selling show, the two biggest Zuffa shows before TUF and the monstrous record setting UFC 61, but his star power was contagious. Tito didn’t become a ppv draw until he defeated Ken at UFC 40. And Chuck Liddell and Randy Couture didn’t become major draws until they beat Tito. It was as if Shamrock had a virus.
He had the money disease. I met him in person for the first time this weekend and he didn’t hit me or anything. Probably got off lucky.
by Jonathan Snowden on Jun 2, 2010 9:00 AM EDT up reply actions 1 recs
They used to get Mousassi out of them too. Seems like Strikeforce tried growing too fast. Fast rise = fast fall.
"50% of this sport is 90% mental" - Tim Sylvia
“Affliction’s Counter-Suit of Fedor Emelianenko’s Management Calls M-1 Global a Sham”
This is also known as the pot calling the kettle black.
by ufc4 on Jun 1, 2010 3:05 PM EDT via mobile reply actions
tom atencio
has long since realized his life’s true callings were t-shirt sales and massage.
affliction good luck trying to get money from m1
and watch out when u start ur cars….. just sayin
We have a saying back home that if your coming on, COME ON!!!!
They most likely aren’t going to get it back but by just asking the court to award it they are playing hardball with M1 Global in this counter-suit. M1’s lawsuit was that Affliction owed them money as consultants and Affliction is saying that they didn’t do any actual consulting work so they want the money back. Either M1 has to back off saying it was a consulting fee and admit it was for Fedor or they will have to show the court they actually did the consulting work to earn it. Chances are that before M-1 is asked to bring documented proof that they actually did the consulting work they claimed the money was for they will just drop the whole thing and settle out of court.
Atencio was at first a little suspicious when he noticed that M-1’s American HQ was in the back of a transport truck trailer with the engine running.
Keep Firing, Assholes!
BROCKLESNAR's #1 Fan.
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