DALLAS TX - FEBRUARY 04: Heavyweight Champion Alistair Overeem attends The Black Eyed Peas Super Bowl Party presented by Sports Illustrated and Bacardi at Music Hall At Fair Park on February 4 2011 in Dallas Texas. (Photo by Joe Scarnici/Getty Images for Bacardi)
Yesterday afternoon, TMZ reported that Alistair Overeem had gotten started the motions to get out of his Golden Glory contract as well as seek financial restitution for moneys owed over the course of his contract, including a bonus for when he signed with the UFC. Prior to the release of the latest episode of The Reem, Alistair stayed silent on his reasons for leaving his long time home. Even when questioned by Ariel Helwani on this week's MMA Hour, Overeem continued his silence, stating only that everything would be explained once the video was uploaded to the vimeo servers.
In Overeem's suit, he claims that he was required to pay his managers 35% of his pre-taxed earnings, yet they continued to fail him. The suit further states that Golden Glory is withholding upwards of $151,000, including his bonus for signing with the UFC. The suit doesn't specify the damages he is seeking but it is known he is looking for the courts to break his management contract. As a standard in Europe, managers are usually given anywhere between 25-30% of earnings. The Golden Glory management agreement provides for free training which after a full camp can add up to a significant amount of money.
Today, Golden Glory fired back with preparations for counter-suit. In their statement they claim that Overeem has failed to fulfill many of his obligations as a client, including failure to pay management commissions on fights and endorsements. They are viewing this as a way to respond to Overeem's desire to break his contract.
As for Golden Glory's claim, it remains inconsistent to what was previously reported. The managers have been on record saying they receive payments first and then cut checks to the client after taking their cut. Stating that Overeem owes commissions directly contradicts this policy.
This will play out in the courts over the next couple of months. I wouldn't be surprised if Golden Glory's goal is to just burn through Overeem's legal funds in hopes that he can't continue a lengthy legal battle They believe they are owed his future earnings through the life of the contract and will fight to receive those payments. Overeem will most likely be granted a court order allowing him to break the deal.