Latest on HDNet v. Zuffa: Resolution by End of Summer Appears Likely

On April 9, a Federal Judge remanded HDNet Fights' declaratory judgment action against Zuffa to Texas state court. The case was officially reopened on April 15 and the proceedings to determine Couture's contractual status are progressing quickly. With HDNet's lawyers reportedly pushing the pace, a resolution of the case by the end of the summer appears more and more likely.

Court records obtained by MMAPayout.com show that Zuffa filed a motion to dismiss on April 21, while HDNet filed a motion for summary judgment on April 23. The motion to dismiss is scheduled to be heard on May 19, while the motion for summary judgment will be heard on June 2. However, details on the case will become increasingly difficult to obtain thanks to Zuffa's motion to seal the proceedings.

Everlast Announces Partnership with Couture

Today Everlast announced a partnership with Randy Couture. The deal represents another step for MMA into the mainstream of the American sports industry. Everlast is one of the largest and best known brands in sports equipment. From the press release:

This long-term partnership marks the commitment of Everlast to become the premiere brand in the fastest growing sport of Mixed Martial Arts. The partnership with Couture allows him to exclusively wear Everlast fight shorts, fight gloves, training equipment and training apparel. In addition, Everlast will be the exclusive equipment and apparel sponsor of Xtreme Couture Gyms, in all locations. Together, Everlast and Couture will collaborate on a co-branded line of MMA equipment that will set the standard for equipment and apparel in MMA. Additionally, the partnership will work on developing grassroots programs to teach the youth, and create fitness clinics and retail concept shops.

HDNet v. Zuffa Remanded to State Court

MMAPayout.com has learned that the United States District Court for the Northern District of Texas has granted HDNet's emergency motion seeking remand of its lawsuit against Zuffa to Texas State court. Zuffa removed the declaratory judgment action concerning Randy Couture's promotional contract to Federal Court last month. The ruling represents a procedural victory for HDNet and Couture.

Senior Judge A. Joe Fish issued the ruling this afternoon. The central issue was whether or not HDNet's choice to enter into its contract with Couture through a specially established Nevada entity was proper, thus defeating the court's diversity jurisdiction, or whether it represented collusive manipulation, as claimed by Zuffa. From the order:

However, the court recognizes the danger inherent in second-guessing the motivation behind business decisions. As much as the defendant wishes this case to be an assignment case, there is no assignment here to scrutinize. The burden on the party claiming that it has been improperly denied its statutory right to removal is a heavy one (citations omitted). The timing and circumstances surrounding the formation of the HDNet Nevada entities presents circumstantial evidence of collusive manipulation, but without more the defendant has not discharged this heavy burden.

The cases that Zuffa relies on involve situations where the assignee entity could not demonstrate a legitimate raison d’etre other than for the destruction of diversity. Here, though the circumstantial evidence suggests the plaintiff might have been motivated in part by the underlying lawsuit, as with Ivanhoe Leasing, the court also finds the plaintiff “was also influenced by other factors unrelated to jurisdiction” (citation omitted). This court is confident that the issues between the plaintiff and the defendant can be adequately addressed in state court.

NOTE: A full writeup is available at Sherdog.com.

Fedor-Sylvia Report Raises Interesting Questions

This afternoon Fedor Emelianenko confirmed to Sherdog.com that he will face Tim Sylvia on July 19. The bout will reportedly headline an event promoted by Affliction at American Airlines Arena in Dallas and air on HDNet Fights. MMAPayout.com reported earlier this month that the clothing company had scraped plans for a June debut in Las Vegas and was tentatively planning a July date in Houston.

The report raises a number of interesting questions, but none more interesting than Fedor's contractual arrangement for the event. MMAPayout.com has received multiple unconfirmed reports of an offer worth slightly more than $2 million per fight from Affliction to Emelianenko. Sylvia is under contract to Adrenaline, the successor to M-1 Global which dissolved last month after parting ways with Fedor.

Regardless of the final details, this event appears to have all the makings (two promoters and a third party television outlet/producer) of the first major co-promotional event in MMA history. The bout has storied history, reportedly in the making for several years with Dana White originally offering to send Sylvia to Pride to fight Emelianenko. The bout would also put to rest reports that Emelianenko was "afraid" to fight Sylvia.

The most interested observer of the bout in July might very well be Randy Couture. Assuming a favorable outcome in pending litigation, admittedly a big assumption, Couture hopes to fight Fedor in October of this year. An Emelianenko loss could potentially put that fight in jeopardy, or at the very least take much of the luster of the bout.

Xtreme Couture GI Foundation 5K Freedom Run

The Xtreme Couture GI Foundation is holding a 5k run on May 17 in Henderson, Nevada. In addition to participating, sponsorship opportunities are available.

5-time UFC Champion Randy “The Natural” Couture started The Xtreme Couture GI Foundation after visiting with amputees at Brooke Army Medical Center in San Antonio. The foundation was especially formed to raise money and awareness for those wounded in action and their families. to date, more than 24,000 U.S. Troops have been wounded in the war against terrorism, which doesn’t include the many more suffering the mental effects. The Xtreme Couture GI Foundation’s goal is to help fit amputees with top of the line prosthetic devices to allow them to live a normal life and to continue living an active and athletic lifestyle.

FOR MORE INFORMATION PLEASE CALL VALERIE AT
702-616-1022 (OFFICE) OR EMAIL VAL@XTREMECOUTURE.TV

Couture Litigation Grows More Complex

The legal war between Randy Couture, Zuffa and HDNet Fights continues to heat up with the parties engaged in an increasingly complex set of litigation that includes two separate lawsuits, in Nevada and Texas respectively, and now an arbitration proceeding in Nevada.

On March 7, Zuffa filed for arbitration on Couture's promotional contract, pursuant to the terms of the agreement, in Nevada district court. The action marks the first time that Zuffa has formally made the promotional contract the issue of legal proceedings.

According to Zuffa, the proceeding will "necessarily require resolution of disputes between Zuffa and Couture over key terms of the promotional agreement," including those at issue in the HDNet Fights declaratory judgment action in Texas state court.

The action also continues in Texas. On March 13, Zuffa filed a notice of removal to federal district court in HDNet's declaratory judgment action brought against the company in Texas district court last month. [FULL STORY at SHERDOG.COM]

MMA Goes Hollywood

The following article was originally published in the February 2008 issue of Fight! Magazine and is republished with permission.

They say if you can make it in Hollywood, you can make it anywhere. If that old adage holds true then not only has MMA arrived, but it looks like its here to stay. Whether it’s Endeavor representing the UFC, Creative Artists with TapouT, the IFL at William Morris, or Gersh representing fighters like Randy Couture, some of the most prestigious talent agencies in Hollywood are scrambling to enter the sport. And with their resources they have the potential to change MMA as we know it, expanding the profile of the sport and its stars further than anyone would have dreamed possible twelve years ago when the first UFC event was held.

While other MMA players may be getting their first taste of Hollywood, tinsel town is old hat for the UFC according to Dana White. “Hollywood has been in our space for a long time. We’ve been dealing with a lot of people in Hollywood for seven years. Now all these upstarts and all these other people that are popping up out of the woodwork are apparently talking to agencies too.”

The UFC’s relationship with Endeavor, home to Hollywood A-listers like Matt Damon, Chris Rock, and Jessica Alba, started when a mutual friend brought White and Endeavor President Ari Emanuel together. White is effusive in his praise for Emanuel, noting that he is the basis for Entourage’s Ari Gold and calling him “the best agent in Hollywood without a doubt. There were a lot of people that came and pitched us. We talked to a lot of different agencies. There was no doubt, hands down, that Ari and Endeavor were the best.”

When asked about the advantages of working with Endeavor, White said, “when you have an agency like them you can work on running your business and let them handle all the bullshit for you.” The agency handled all of the UFC’s recent negotiations with Spike allowing White and the UFC to maintain a good relationship with the network “because we have to work with them.”
But it’s not just the sport’s premier promotions that Hollywood is interested in. Many agencies are beginning to explore the area of fighter representation. The entrance of high profile sports agents into the sport has long been thought to be a mere formality, a matter of the money being right, but the prospect of Hollywood talent agencies entering the space has the potential to revolutionize what it means to be a professional fighter.

The first agency to take the plunge into fighter representation was the Gersh Agency, which boasts a client list that includes Jamie Foxx, Dave Chapelle, and Megan Fox. Matt Walker, Vice President of Extreme Sports at Gersh, has become a champion of the agency’s involvement in MMA thanks to his relationship with Randy Couture.

Walker was a successful baseball agent before entering MMA and it was with one of his clients, David Dellucci of the Cleveland Indians, that Walker first talked with Randy Couture and became interested in MMA. During the conversation, Couture mentioned that he had recently has his UFC hummer stolen and with it all his hunting equipment. Walker offered to help.

After some difficulty Walker was able to secure a free replacement hunting bow for Couture. “Randy realized that if I said I was going to do something, I did it,” said Walker. Subsequently, Walker’s sports agency began handling Couture’s endorsements. “Then we just organically over time built a trust and a friendship that I think is very, very special now.”

After ten years in the baseball industry, Walker was looking for a change and saw MMA as an opportunity to apply his skill set to an exploding sport. At the same time Couture was beginning to take some acting classes and becoming more serious about pursuing opportunities in Hollywood. Then, as both Couture and Walker said, the stars aligned when Walker’s sports agency was absorbed by the Gersh agency.

“Most of these athletes at the end of the day want to take the celebrity that they’ve built on the field or through their sports and translate that into other opportunities whether that is business, entertainment, or whatever they may want to do,” Walker said. With Gersh, “I don’t have to go outside of this office, all I have to do is push the buttons, find the people here that believe in MMA, believe in my client in the same way, and then you can do it all internally.”

The relationship is already paying dividends for Couture who recently sold his memoir to Simon Schuster. The book was a hot property when Gersh Literary agent Margaret O’Connor took it to the market earlier this year. “MMA is the new big realm in publishing right now. The sport is becoming part of the cultural zeitgeist, it’s infused in popular culture. It’s not a direct comparison, but seven or eight years ago there was this huge flurry of books on the personalities of the WWE. This is like the next wave.” Couture’s book, co-authored by Loretta Hunt, Becoming the Natural will be imprint in June 2008.

On the acting side Couture has just finished filming Scorpion King: Rise of the Acadian and Dave Mamet’s Redbelt, in addition to a recent episode of the The Unit. Couture’s young acting career is off a promising start according to his acting agent at Gersh, Brett Norensberg. “The interest is great, the opportunities are plentiful, and the appetite out there is quite strong,” said Norsensberg. “The studios are willing to not only cast him in roles that are lead roles, but they are willing to develop features for him. So you’re going to see a lot of Randy in the next couple of years.”

Couture originally didn’t consider acting as a potential career, but the “more opportunities that I got, I enjoyed the experience, enjoyed the process of making films, being involved with TV shows, and I started looking at it differently. I started saying, ‘you know what I find this very intriguing, this whole process, the finished products are really cool, its something I think I’d like to try.’”

His early roles were mostly as tough guys and thugs with a focus on fight scenes, but since Norensberg says Couture has proven that he can act while building an impressive resume that can overcome typecasting. “I have to tell you that a lot of the roles that we’re talking about now are not necessarily roles where he is a big tough guy. It’s not just marching into a room and beating up a bunch of people. He’s cast more as the thinking man’s hero.”

Couture said that the reception he receives while making his rounds in Hollywood varies. “I’ve gone to some meetings and had guys coming from two floors up to get an autograph and I’ve been to other meetings where it was a complete education process, telling the people you’re in the meeting with about the sport and how it works.”

At first glance acting and fighting may seem like polar opposites, but Couture says there are more similarities than you might think. “You need to have focus in both. There is an intensity that I think fighting presents that I can now translate to acting that a lot of actors don’t have the advantage of. Certainly work ethic. You either have some natural abilities and can wrap your brain around it and do it or you can’t and fighting is the same way.”

Norensberg says the goal in five years is to have Couture starring in a variety of features, but shys away from comparisons to former pro wrestler Dwayne “The Rock” Johnson, insisting that Randy will make his own way. “A lot of people make that comparison, but you could also make a comparison to Vin Diesel who is an educated, strong, thoughtful protagonist.”

When asked where he sees himself professionally five years from now, Couture responds, “I’ll definitely be considered a bona fide actor and be more in the acting world, but I’ll always be involved in MMA and training, managing, helping out fighters train and see them progress in their careers. It’s a sport I love.”

As a fighter, Couture sees Gersh’s involvement as a welcomed development. “I think that there are a lot of athletes out there in our sport that are being misrepresented. They’re not being done justice in their fight careers. I think a lot of those purely fight managers don’t have the capability of helping athletes try to diversify and make the transition somewhere else.”

But not everyone is excited about the prospects of an army of Hollywood agents descending on the MMA world with promises of fame and fortune. White has been an outspoken critic of Walker during the UFC’s dispute with Couture, repeatedly referring to Hollywood agents as parasites.

“They’re parasites and what there job is to tell you how fucking great you are, how many other things you could be getting, how badly your getting fucked, and how much better they’re going to make your life,” White said. “That’s there job. But with most of the things that these guys tell these fighters, they’re lucky if thirty percent of it comes true.”

However, despite how difficult it is to break into the entertainment industry, White believes that someday someone will become a true cross over star. “I guarantee you that one of these guys, at least one of these guys, will break out of this thing and end up like the Rock. I guarantee it.

Which isn’t a bad thing, I don’t frown on that. If some guy breaks out of fighting and ends up like the Rock. Good for him, that’s awesome. You’ll never here me bitching about somebody making their life better. I’ve got no problem with that at all.”

Regarding White’s comments about him, Walker suspects that White was trying to drive a wedge between he and Couture. “At the end of the day I work for Randy, and Randy is a very well educated, grown man, and has accomplished a great deal, has a lot of respect in the industry, he’s going to make the decisions that are best for him. So [White] can blame it on me, try to make me a scape goat, that’s fine, it doesn’t bother me one bit, especially coming from him. But the reality is that I didn’t cause this situation. It’s not about me, it’s about Randy.”

When asked if he cared to respond to Walker’s comments, White said “No, not at all. We’ll see what happens. We’ll see. I have no comment. Believe me when I tell you that guy knows who he is, he knows what he’s done and what he hasn’t done. He knows.”

White went on to say, “I’ve got no problem with the Randy Couture thing. It’s the way it was handled. Just like that parasite said, we’re all grown men and there’s tons of paths out in front of us and we all have to choose which path we want to walk down.”

Regardless of White’s sentiments, it’s inevitable that other agencies will follow Gersh’s lead into fighter representation, especially with the early success Gersh has enjoyed. The agency’s investment in the sport is already paying dividends with an ever expanding client list as well as interest from some of the top names in the sport. It has produced results not just with Couture, but also with Gina Carano, who is set to star in NBC’s prime time revival of the American Gladiators in 2008, and Cung Le, who has landed several movie parts prompting comparisons to Jet Li. Walker has also recently secured a trading card deal with Donruss, poster deal with Wall Bangers, and action figure with Round 5.

Walker believes the sport is just scratching the surface of it’s potential and sees even bigger and better days ahead. “Eventually it’ll be the biggest sport in the world because it gets back to our roots. It gets back to the roots of mankind, its gladiators, its one on one, it’s just such a pure sport, and that’s coming from someone who didn’t grow up around it. I’ve never, ever in my life felt the energy that I felt at the Randy Couture-Tim Sylvia fight. It was unbelievable. In my humble opinion, I honestly think that in five years it’ll be the biggest sport in the country.”

For his part, White said that Hollywood can have its expectations, but “the bottom line is I’m driving this fucker.” White went on to say, “I’ll tell you exactly where it’s going. We’re going global, we’ve got our office in the UK and now we’re starting to move out into Europe. We haven’t even scratched the surface of how big this thing is going to be in the United States. People think this is big and mainstream now, you haven’t seen anything.”

For better or worse, wherever MMA goes in the years to come, it looks like Hollywood will be there to play its role.

Zuffa, Couture Have Different Takes on Preliminary Injunction

I have a new piece up at Sherdog.com this afternoon with further insight and analysis into last week's action in Zuffa v. Couture. Included is a breakdown of each party's press release, new insight into last week's hearing, a preview of this Thursday's preliminary discovering hearing, and details of a dispute between the IFL and Xtreme Couture. The lead:

Judge Jennifer Togliatti handed down the first ruling last Thursday in the contentious Zuffa v. Randy Couture proceeding, issuing a preliminary injunction barring Couture's participation in the IFL's event the following day. However, the impact of the ruling is open to interpretation and neither party has been shy about offering its own version.

FULL STORY: Zuffa, Couture Have Different Takes on Preliminary Injunction

Zuffa Wins Preliminary Injunction

I have a piece covering yesterday's preliminary injunction hearing in Zuffa v. Couture up at Sherdog.com. Zuffa's motion was granted, but it essentially ended up being moot:

The victory, however, was a shallow one, as the court noted that many of the issues regarding Couture's involvement in the event had become moot. As Sherdog.com reported Thursday night, prior to the ruling the IFL agreed remove "Xtreme Couture" from the event, including any references on its Web site, as a professional courtesy to Couture. In an amended affidavit filed yesterday with the court, Couture further stated that he had no intention of attending the event.

FULL STORY: Zuffa Wins Preliminary Injunction

Professional Courtesy: Xtreme Couture Out, Team Tompkins In

No word yet on the outcome of today's preliminary injunction hearing in Zuffa v. Couture, but MMAPayout.com has learned that the athletes fighting at tomorrow night's IFL event will compete under the Team Tompkins banner, not Xtreme Couture.

Joe Favorito, IFL Senior Vice President of Communications issued the following statement to MMAPayout.com:

Given the ongoing litigation between Extreme Couture and the UFC, we were asked by Extreme Couture Wednesday to not use the Extreme Couture camp name in our event this Friday. Out of respect for Randy and his team in this difficult situation, the camp will take the name Team Tompkins. Shawn Tompkins is coaching this Friday as already announced for this Friday's event. The IFL is not in any way involved in this litigation, we are doing this out of professional courtesy for Randy and his group.

Developing...

Zuffa v. Couture Preliminary Injunction Ruling Expected Today

I have a new piece up at Sherdog.com previewing today's hearing in Zuffa v. Couture with a look at both sides briefs and the back story of the IFL incident, as well as details on the role Couture's promotional contract is playing in the proceeding, plus a look at Couture's motion to dismiss several claims in the case. The lead:

Months of verbal sparring between Zuffa and Randy Couture (Pictures) should have some resolution late Thursday afternoon. In front of Judge Jennifer Togliatti, in Nevada District Court, Zuffa is seeking a preliminary injunction preventing Couture from "engaging in any promotion or production of any events or programming related to unarmed combat during the one-year Restricted Period in his Employment Agreement." This includes, but is not limited to, the use of Couture's likeness by the IFL and his participation in this Friday's IFL event in Las Vegas.

FULL STORY: Zuffa v. Couture Preliminary Injunction Ruling Expected Today

Preliminary Injunction Ruling Delayed in Couture Case

Greg Savage has an excellent account of yesterday's hearing in Zuffa v. Couture up at Sherdog.com, complete with quotes from the court room. The issue basically boils down to what the phrase from the contract "involved with any promoter" means.

Couture's attorney:

The conduct is not promoting. The conduct is not conducting a business related to unarmed combat other than Xtreme Couture, which was excluded from the employment agreement.

Zuffa's attorney:

The words ‘involved with any other promoter' are broad for a reason. Because we don't want him involved with any other promoter. We pay him hundreds of thousands of dollars not to be involved with any other promoter. That was the consideration for the contract and the simple fact of the matter is that someone has whispered in his ear that maybe he can make more money doing something somewhere else, doing something he shouldn't be doing under this contract. And he has decided, for whatever reasons, be they avarice or whatever, that he is going to do them, and in the course of doing so, sully the good name of the individuals that made him a multi-millionaire 10 times over.

The hearing was continued until Thursday afternoon in order to obtain an affidavit from the IFL regarding the effect the injunction would have on their show on Friday. Couture's attorney suggested that an adverse ruling might force the promotion to cancel the show, a notion which Zuffa's attorney called "nonsense."

Update: Zuffa v. Couture

The parties were in court yesterday for a hearing on Zuffa's motion for a preliminary injunction enforcing the non-compete provision of Couture's employment contract. Specifically, Zuffa is trying to stop the use of the Xtreme Couture brand by the IFL in promoting its 2/29 event. The proceedings were continued until Thursday because the judge needed more information in order to make a ruling.

More details to come later today. Sherdog's Greg Savage was in the court room and I have written up each side's motions on the matter.

Update: Zuffa v. Couture

While MMAPayout.com has been focused on HDNet Fights v. Zuffa in Texas, there have been fresh, albeit expected, developments in Zuffa v. Couture in Nevada. Randy Couture filed a motion to dismiss this week in response to the complaint, while a hearing regarding Zuffa's motion for an injunction was moved from 3/5 to 2/26.

The hearing next week will determine Couture's availability as a cornerman on next Friday's IFL event in Las Vegas.

HDNet Fights Has Contract with Couture; Question is When It Begins

I have a piece up at Sherdog.com with new details on HDNet Fight's lawsuit against Zuffa. The lead:

Last week Mark Cuban's HDNet Fights made headlines when it sued Zuffa, parent company of the UFC, in district court in Dallas. As first reported by Sherdog.com, the suit seeks declaratory relief concerning Randy Couture's contractual status under a promotional contract with Zuffa.

New details of the action have been revealed in the complaint obtained by Sherdog.com. According to the filing, HDNet Fights has entered into a contract with Couture that is scheduled to commence upon the expiration of his Zuffa promotional agreement. At that time, the company plans to promote a fight between Couture and Fedor Emelianenko in Dallas, assuming terms can be reached with the highly regarded Russian heavyweight.

FULL STORY: HDNet Fights Has Contract with Couture; Question is When It Begins

SEE ALSO: Upon Closer Examination: Impact of HDNet v. Zuffa on Couture-UFC Dispute

Upon Closer Examination: Impact of HDNet v. Zuffa on Couture-UFC Dispute

HDNet Fights shocked the MMA industry this week when it entered the legal fray of the ongoing dispute between Randy Couture and the UFC. The complaint has not surfaced yet, but from conversations with those familiar with it and the larger legal proceedings, MMAPayout.com has identified several issues that bear watching.

The most interesting immediate legal issue raised by the suit is the exclusive jurisdiction/venue clause contained by all Zuffa promotional contracts. The clause, a standard feature of contract law, names the 8th Judicial District of Nevada as the exclusive site of any litigation arising out of the contract. Because HDNet Fights is not a party to the contract, it is presumably not bound by the clause, therefore allowing the action to proceed in Texas. However, regardless of the venue, the contract will interpreted under Nevada law.

There are several potential advantages of proceeding in Texas. First, the state is believed to have more lenient legal standards concerning declaratory judgments. The ripeness doctrine in particular is reportedly more plaintiff friendly in Texas than Nevada. Ripeness is a legal term that refers to whether or not an issue is ready to be decided in court.

Another obvious advantage is the shifting of the home field advantage. Lawyers often worry about "home cooking" when one of the parties has strong ties to the local community in which a case is pending, and there is no doubt that Nevada is Zuffa's comfort zone. However, sources have told MMAPayout.com that the judge handling the case in Las Vegas has a reputation for fairness and Couture is expected to receive a fair shake. Nonetheless, in Las Vegas HDNet Fights and/or Couture must find local counsel to battle Zuffa's experienced local attorneys, whereas in Texas, it is Zuffa that will be forced to retain new counsel licensed to practice in Texas.

The biggest advantage of the move may be the systemic shock it represents to Zuffa. Zuffa is used to dictating the terms, timing, and location of its battles. By unexpectedly filing suit in Texas, HDNet Fights surprised Zuffa and put the company on its heels. Essentially, until this point the company has been on the offensive in the Couture dispute. Now it must play defense.

Another significant benefit for Couture that can't be overlooked is legal fees. With HDNet Fights shouldering the declaratory judgment action, Couture stands to save hundreds of thousands of dollars in legal fees. This also negates the advantage Zuffa has over Couture when it comes to financial resources. Without HDNet's "support," Couture faced the real possibility of being financially strained by the proceedings, providing Zuffa with the kind of leverage necessary to force a favorable settlement and even potentially force Couture back into the octagon. At the end of the day, Mark Cuban, like the Fertittas, can spend whatever he deems necessary in pursuit of a favorable outcome.

It remains to be seen whether the Texas court will accept the case and what Zuffa's response will be. Zuffa could ask for removal to Federal Court under diversity of citizenship, however, that move may be complicated if the company is also registered in Texas. It also seems likely that Zuffa will move to add HDNet Fights and possibly Mark Cuban himself to its lawsuit against Couture in Nevada, using the Texas suit as evidence of a conspiracy to commit tortious acts. Ironically, that move might play into Couture's hands by allowing HDNet Fights to shoulder the financial burden there as well.

If the Texas court does exercise its jurisdiction and ultimately enters a decision in the case, several more complex legal issues may arise. Per the doctrine of res judicata, an earlier resolution of Couture's contractual status by a Texas court would presumably be binding in Nevada. However, Nevada might be reluctant to abide by Texas's interpretation of Nevada contract law under the circumstances.

If Texas and Nevada were to each offer competing interpretations of the contract, the dispute could enter Federal Court for a final resolution. In such a scenario, it seems hard to imagine the Federal Courts enforcing a Texas court's interpretation of a complex contractual issue under Nevada law over a Nevada court's own interpretation.

Despite many uncertainties, one fact is very clear: the entry of HDNet Fights into the dispute significantly changes the equation for all parties involved moving forward.

Special Thanks to Jeff Thaler of FightOpinion.com and JM.

Cuban's HDNet Fights Enters Couture-UFC War

I have a new piece up this morning at Sherdog.com with the latest development in the Couture-UFC dispute, the unexpected entry of HDNet Fights directly into the legal fray. The lead:

The resignation of Randy Couture and his subsequent continuous dispute with the UFC took an unexpected turn Wednesday.

With the mixed martial arts industry focused on the Zuffa v. Couture proceedings scheduled to begin with a preliminary hearing March 4 in Las Vegas, billionaire Mark Cuban and his HDNet Fights company has quietly entered the fray, opening a second front in the Couture-UFC war, Sherdog.com has learned.

On Wednesday, in district court in Dallas, HDNet Fights filed suit against Zuffa seeking a declaratory judgment concerning the contractual status of Couture under his Zuffa promotional contract. In an ironic twist, Zuffa's co-defendant in the suit is technically none other than Couture himself.

FULL STORY: Cuban's HDNet Fights Enters Couture-UFC War

Growing Discontent: Ortiz and Sylvia Talk About Possible Exits from UFC

This week Tim Sylvia became the latest UFC headliner to threaten to leave the company when his contract expires:

i have one fight left on my contract i want to stay with the ufc but i am going to go were the money is right now Brock is making more money then me that has to change i have a better name then him and i am a better fighter then him, i case u didn’t know my manager runs m1 so i have a pretty good in so we will see what happens in the next few months.

Also this week, Tito Ortiz was on the offensive again on the Howard Stern Show.

It now appears that Randy Couture's resignation has indeed emboldened other fighters as MMAPayout.com speculated it might last October. The company is now facing the possibility of losing Ortiz, Arlovski, and Sylvia in less than one year. Respectively, including Couture, the departure's represent two of the company's four proven pay-per-view draws, two former Light Heavyweight Champions, and three of its past four Heavyweight Champions.

MMA Goes Hollywood

The latest issue of FIGHT! magazine is now available on newsstands. I have a piece called "MMA Goes Hollywood" focusing on the growing profile of MMA in Hollywood with quotes from Dana White, Randy Couture, and Couture's sports and acting agents. Key quotes to wet your appetite:

“Most of these athletes at the end of the day want to take the celebrity that they’ve built on the field or through their sports and translate that into other opportunities whether that is business, entertainment, or whatever they may want to do,” Matt Walker (Couture's sports agent) said. With Gersh, “I don’t have to go outside of this office, all I have to do is push the buttons, find the people here that believe in MMA, believe in my client in the same way, and then you can do it all internally.”
...
As a fighter, Couture sees Gersh’s involvement as a welcomed development. “I think that there are a lot of athletes out there in our sport that are being misrepresented. They’re not being done justice in their fight careers. I think a lot of those purely fight managers don’t have the capability of helping athletes try to diversify and make the transition somewhere else.”
...
“They’re parasites and what there job is to tell you how fucking great you are, how many other things you could be getting, how badly your getting fucked, and how much better they’re going to make your life,” Dana White said. “That’s there job. But with most of the things that these guys tell these fighters, they’re lucky if thirty percent of it comes true.”

In only four issues FIGHT! has become the largest MMA publication in North America with over 6,000 subscribers and available in bookstores like Barnes & Noble and Borders nationwide. Since its inception the publication has gone from a bi-monthly format to monthly and expanded into Canada with expansion into Europe, Mexico, and Latin America on tap in the not too distant future. As part of an aggressive marketing plan, a full year subscription (12 issues) is now available for $18.95, at least $10 below the competition and 65% off the cover price.

Thanks to Donovan Craig and Matt Brown at FIGHT! who are both a pleasure to work with.

Employment, Not Promotional, Contract at the Center of Zuffa v. Couture

I have a full breakdown of the complaint filed by Zuffa against Randy Couture and co-conspirators on Sherdog.com. The piece includes the first public comment from Couture's camp, in the form of his agent Matt Walker. The lead:

When Randy Couture (Pictures) announced his resignation from the UFC on Oct. 11, 2007, it seemed inevitable that the matter would be settled in court. The inevitable became official on Monday as Zuffa, parent company of the UFC, filed a complaint against Couture and yet to be named co-conspirators in Nevada's Clark County District Court. Perhaps to the surprise of many observers, the complaint makes no mention of Couture's promotional (fight) contract with Zuffa. Instead the company's breach of contract action is predicated on its employment contract with Couture.

FULL STORY: Employment, Not Promotional, Contract at the Center of Zuffa v. Couture