Ken Shamrock filed suit against Zuffa yesterday in Nevada State Court. MMAPayout.com has not seen the complaint, however, based on the information available, it appears that the action is predicated on the company's now infamous retirement clause.
It seems that Shamrock signed a two-fight contract with Zuffa that included a third rematch with Tito Ortiz. Shamrock then announced his retirement. At that point Zuffa made an election, as is its right under the terms of its standard contract. The action alleges that Zuffa breached its contract with Shamrock when it changed that election upon Shamrock's announcement that he intended to return to fighting.
The standard retirement clause reads:
If at any time during the Term, Fighter decides to retire from mixed martial arts or other professional fighting competition, then ZUFFA may, at its election, (i) suspend the Term for the period of such retirement; (ii) declare that ZUFFA has satisfied its obligation to promote all future Bouts to be promoted by ZUFFA hereunder, without any compensation due to Fighter therefore; or (ii) elect to provide Fighter with notice of an Acceleration.Based on the fact that Shamrock subsequently signed a contract and fought in EliteXC, it appears that Zuffa likely elected to suspend the term of the contract following Shamrock's retirement, and then elected to declare its obligation satisfied when Shamrock announced his intention to return.
More details to come.
