Nick Diaz formally files breach of contract against Elite XC
by James Iannotti on Oct 31, 2008 12:38 AM EDT
29 comments
Former Elite XC lightweight contender Nick Diaz today formally filed a breach of contract notice against Elite XC, which closed its doors earlier this month, to ensure that he can legally remain an active fighter in the days and months ahead with no restrictions.
The title of the letter read, "Notice of Breach - Unarmed Combatant Promotional Agreement between Nick Diaz and EliteXC Live, Inc." It was made available in its entirety over at GracieFighter.com.
The breach obviously comes from the promotion being unable to fulfill the number of fights on his contract. The promotion has 30 days to remedy the situation; however, that remains a very slim possibility now that it no longer exists.
Diaz was set to face Eddie Alvarez for the company's vacant lightweight title on November 8. That bout was scrapped when Elite XC announced its plans to fold.
The Cesar Gracie-trained Brazilian jiu-jitsu black belt is always in great shape and seems to want to fight a lot. So this letter should make him eligible to fight anywhere he pleases after 30 days.
Here's a snip:
"Pursuant to Article 43 of the Agreement, EliteXC Live Inc. has thirty (30) days to cure such material breach by posting a bond or other form of escrow in such an amount as set forth in the Agreement that must be payable to Mr. Diaz upon completion of each contemplated Bout set forth in the Agreement and any extensions thereof, and, specifically to evidence EliteXC Live Inc.'s ability to fulfill its obligations under Article 47. If EliteXC Live Inc. fails to cure such material breach in the manner set forth above within thirty (30) days of receipt this written notice, then in Accordance with Article 43, the Agreement and any extensions thereof will be terminated."
Diaz has been clear in the past that he enjoys competing in Japan under their rules and in a ring. In fact, he has been rumored for months to be facing "Mach" Sakurai for the DREAM welterweight crown.
The Japanese have traditionally always put together solid events on New Year's Eve and 2008 is no exception. Therefore, if Diaz becomes a free agent, don't be surprised to see him compete one more time before year's end ... perhaps on the stacked DREAM K-1 card.
Time will tell.
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I dont get it… is Diaz worried that Elite XC is going to come back and claim that he still fights for them? that seems a little far fetched and seems like unnecessay action on Nick’s part… but maybe im reading this whole thing wrong…
by brendan on Oct 31, 2008 12:44 AM EDT reply actions 0 recs
Simply put, Nick does not want to waste time waiting for Elite XC to get its paperwork in order. He wants out now and is pushing it from his end so he can get back to doing what he does… fight.
by DJ on Oct 31, 2008 6:17 AM EDT up reply actions 0 recs
He’s just protecting his @ss legally. I don’t think it’s silly that he did it, but I do think it’s silly that he HAD to do it. I mean, would you put ANYTHING past the Shaws?
by chefdaddy on Oct 31, 2008 7:33 AM EDT up reply actions 0 recs
u r right on chefdizzle!
my boy nick is just protecting himself.
the thing is that even though elite shut down~
they still have contracts with their fighters.
right now alot of mma orgs are trying too scoop up
some of the top end fighters that were with elite.
and since elite knows that the ufc is a big possible org
that would sign some of the better fighters?
they hate the ufc and would do anything possible to
pro~long contract cancellations. and they could.
thats why nick is doing this up now.
he wants to fight. not wait!
i bet we see other ex-elitexc fighters following in the same manner.
by ricky~dooby on Oct 31, 2008 8:44 AM EDT up reply actions 0 recs
you guys are right on, just because a company files for bankruptcy protection, doesn’t mean they are out of business. All these fighters are still technically under contract with elite, basically making them unable to work anywhere else! In a nut shell, UFC could call some of these guys and invite them to compete in the next 3 shows, and they can’t. But elite could sell their most talented fighters contracts to affliction if they wanted to stop guys from going to UFC. by the sounds of it, there is a clause in Nick’s contract for inactivity. Smart, one can only hope other management companies were this smart!
by kevin (some guys hate me...and I don't care) on Oct 31, 2008 10:50 AM EDT up reply actions 0 recs
And everyone would just assume that Nick is a stupid stoner…
Excellent idea Nick. Now go kick some ass in Japan homie!!!!!!!!!
by ViolentMike on Oct 31, 2008 11:17 AM EDT up reply actions 0 recs
Couldn’t every fighter who still had fights on their contract file the same lawsuit?
Where is this money going to come from?
by Diesel Power on Oct 31, 2008 1:12 AM EDT reply actions 0 recs
Yes they can, and they should. They can move on with their fighting careers and sign with other organizations.
by DJ on Oct 31, 2008 6:19 AM EDT up reply actions 0 recs
That’s kind of the point of the lawsuit, if EliteXC doesn’t satisfy the contract, either with the proposed number of fights or a predetermined monetary settlement within 30 days, his contract is void, then Nick is free to fight anywhere he wants. Obviously, at this point EliteXC can’t do that, so its his legal way of being able to move on in his career without fear of legal reprisal. And every fighter should do the same, as long as they have some sort of breach of contract clause in their contract.
by zaxonortesus on Oct 31, 2008 7:43 AM EDT up reply actions 0 recs
Im just pumped because Diaz is going to land back in the UFC. The brothers will be reunited! Im not saying he is a top 3 guy but he puts on good fights and is a top 5 guy.
by Warrior Training Center on Oct 31, 2008 1:18 AM EDT reply actions 0 recs
Unless EliteXC sent a formal release to each fighter, they all still have valid contracts. But EliteXC probably has a lot of legal matters to settle and may have not yet gotten around to legally releasing the fighters. Nick Diaz is not waiting for EliteXC to send him a letter since he can terminate his contract in 30 days through the legal method described in the article above.
by DrPepper on Oct 31, 2008 1:22 AM EDT reply actions 0 recs
How can they have a formal contract though if the organization has closed its doors and cancelled its future events? doesnt that pretty much let you off the hook?
by brendan on Oct 31, 2008 2:20 AM EDT up reply actions 0 recs
They might be trying to get him fight at Cage Rage which is owned by Elite but has not folded.
This is a strange situation but I expect to see Elite come back under another banner. They can write off the debts but keep hold off the fighters contacts.
Elite is not dead!! Unfortunately.
by MoonUK on Oct 31, 2008 9:41 AM EDT up reply actions 0 recs
well the fought for elite..buthis contract isnt with elite its with pro-elite. and they still have some power left. they arent completly dead. just elite xc. same with pride they had closed doors but still had a staff working to tie up loose ends…the contracts arent any different in terms propriety. they fight for ufc buts its a zuffa contract.
by santiago69us on Oct 31, 2008 9:41 AM EDT up reply actions 0 recs
they didn’t though brendan, they filed for bankruptcy protection. all contracts are still valid, and technically, if they could gat backing, they could still put on a show. this covers nicks ass so they don’t hold out for months. Realistically, they could say they are going to have a show in march, Diaz will headline, and as long as they put a portion of his purse in escrow, he’d have to wait it out!
by kevin (some guys hate me...and I don't care) on Oct 31, 2008 11:28 AM EDT up reply actions 0 recs
Brendan,
No Elite has not technically “closed their doors”. My understanding, and I haven’t seen the paperwork is that they have file a voluntary petition for bankruptcy. They could be looking to go into reorgnization or they could be looking to go into liquidation. This is where Diaz’s petition come in, if the company is going into reorganization Diaz still has a valid contract with Elite. If the company is going into liquidation the contract is still valid and could be sold to satisfy the debts of the debtor (in this case Elite).
Again, I being very simplistic here because, I have not seen Diaz’s contract nor the bankruptcy petiton filed by Elite.
by Jeff on Oct 31, 2008 11:46 AM EDT up reply actions 0 recs
thats a great assumption jeff, well put!
by kevin (some guys hate me...and I don't care) on Oct 31, 2008 12:00 PM EDT up reply actions 0 recs
Sorry fellas, I can’t yet find the bankrutcy petition for Elite. Still looking. However, I’m starting to wonder if this was a voluntary petition as Showtime has sent Elite a default notice of $6.5 million. Part of the agreement between Showtime and Elite was that Elite would keep a set amount of cash on hand. Elite failed to do so and Showtime brass is upset with the way Elite was running their financial affairs.
by Jeff on Oct 31, 2008 12:05 PM EDT up reply actions 0 recs
Thanks, Kevin. I like your comment above. However, I wonder just how much DIP financing Elite could get in this tight credit market. Elite has a short and horrendous track record with money.
by Jeff on Oct 31, 2008 12:09 PM EDT up reply actions 0 recs
Grat article here at Yahoo Sports. Mania, I’m not sure how you feel about links on the boards. Hope this is cool. Thanks.
http://sports.yahoo.com/mma/news?slug=dm-excfolo102408&prov=yhoo&type=lgns
This article explinas what is going on from an agents point of view for the fighters.
by Jeff on Oct 31, 2008 12:22 PM EDT up reply actions 0 recs
if anything, it would be from a private investor (like trump and afflictions agreement)
by kevin (some guys hate me...and I don't care) on Oct 31, 2008 12:25 PM EDT up reply actions 0 recs
I think a joint venture between Trump and Affliction. Not sure what kind of cash Affliction has on hand. However, I’m sure Trump Holdings could cover payment. At this point the only secured creditor I know of is Showtime. I’m sure there are others.
by Jeff on Oct 31, 2008 1:14 PM EDT up reply actions 0 recs
Its already been said, but WORD UP! great comment (taught me something).
by medecine balls on Oct 31, 2008 4:20 AM EDT up reply actions 0 recs
I’m not even concerned about EliteXC anymore. Where is Nick Diaz going next? Who’s his next opponent?? That’s what I wanna know. He would choke Mach Sakurai. He would go the distance with Eddie Alvarez. He would hold up well in the UFC divisions. EliteXC is dead and they need to release their fighters; they’ll be doing at least one good thing for their fighters and we won’t have to hold our breaths any longer. My heart goes out to Gina Carano..hope you find a decent org, if not, hope to see you in Playboy soon!
by Big E on Oct 31, 2008 2:03 AM EDT reply actions 0 recs
Nick is going to slap a gogoplata on Gary Shaw.
by bostonmmajunkie on Oct 31, 2008 7:47 AM EDT reply actions 0 recs
I’m glad the talented “Diaz” is part of the UFC. Nick’s turned into a douche bag that’s looking for a payday. Go smoke some weed with your buddies in Stockton, and maybe you can be the next YouTube sensation by beating up bums.
It seems like Nick and Junie are both from the same camp…or at least the same trailer park.
by Derick on Oct 31, 2008 11:23 AM EDT reply actions 0 recs
i think elite should give diaz a double biceps pump with middle fingers up all the while muttering a profanity laced tyraid. you know speak his language and maybe then he will understand he just got laid off and aint gettin paid
by day1er on Oct 31, 2008 8:53 PM EDT reply actions 0 recs
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