MMA Payout

UFC head Dana White went after boxer Floyd Mayweather, Jr. during his “Presidential Address” on Tuesday night’s edition of “UFC Tonight” on Fuel TV. White called Mayweather ‘racist’ for his twitter comments related to Jeremy Lin.

Here’s the video which was sent out in a release last night:

Mayweather’s manager, Leonard Ellerbe, responded to White’s comments (via Yahoo! Sports):

“He needs to shut the [expletive] up and mind his own business, stay in his own lane and keep on taking advantage of the UFC fighters, while underpaying them,” Ellerbe told Yahoo! Sports after learning of White’s rant. “If he keeps on running his mouth, we may decide to give a free seminar to all of the UFC fighters on how the pay-per-view revenue should be distributed. This is typical Dana, who is always prone to ignorant outbursts. He should be the last person to try to judge someone else.”

White responded to these comments by telling Ellerbe to mind his own business and that, “We’re (Zuffa) building a sport while you guys are destroying one. ”

Payout Perspective:

Before we get into the substance of the comments, I think its notable to point out that the comments were made as part of UFC Tonight on Fuel TV. The “Presidential Address” was sent out to media to promote the show. Its an interesting way to take advantage of White’s vlog/twitter rants. Certainly, he’s opinionated and his Mayweather comments have received attention.

As for the comments, White is a longtime boxing fan and was speaking his mind on the situation. Whether or not you agree with the comments, so was Mayweather. In fact, Mayweather’s twitter comments about Lin have propelled him back into the spotlight during a quiet time before his fight with Miguel Cotto May 5th. So, perhaps both White and Mayweather are one in the same. Both are receiving notoriety for being themselves.

MMA Fighting reports that Nate Marquardt has returned to fight under the Zuffa banner with Strikeforce. The welterweight’s signing ends an exile that began last June when he was dismissed on the eve of his main event against Rick Story.

Post-UFC Marquardt signed with UK promotion BAMMA but never fought for the company. His last fight was a win in the UFC last March. Adding Marquardt to the Strikeforce roster provides some notoriety and depth to the company’s welterweight division.

Marquardt’s return was announced on Fuel TV’s “UFC Tonight.”

Payout Perspective:

Marquardt’s dismissal was due to elevated testosterone levels claimed to be related to hormone replacement therapy. While Marquardt’s departure from the UFC was somewhat messy, his return to Zuffa is beneficial for both. For Strikeforce, it provides the roster with a notable figure that can spark the welterweight division. For Marquardt, its a second chance with Zuffa and leaves open the possibility of returning to the UFC. The one issue that may hinder Marquardt is the potential stigma that he was terminated from the UFC due to PED use. Marquardt has not had a fight since last March so no one knows how he will be when he returns.

Jon Jones and Dominick Cruz will make appearances at NASCAR events in the next two weeks to promote the UFC. Jones will be the “Honorary Race Official” this Sunday and Cruz will be the “Honorary Pace Car Driver” on March 4th.

It was announced Monday that Jones would serve as the Honorary Race Official for NASCAR’s Daytona 500 this Sunday. Jones will participate in pre-race festivities and promote his upcoming fight at UFC 145 in April. (H/t: MMA Mania)

It was announced earlier this month by MMA Weekly that Dominick Cruz would be the honorary pace car driver at the Subway Fresh Fit 500 in Phoenix on March 4th. The race will be shown on Fox. Cruz will debut as a coach on The Ultimate Fighter on FX 5 days later, March 9th.

Payout Perspective:

Anderson Silva also participated in a NASCAR event in Phoenix last November. At UFC on Fox 2 in January we saw Kevin Harvick make an appearance to promote the Daytona 500. With Fox Sports partnering with both sports properties, we will see more of the synergy. It would be interesting to see if this helps both sports garner fans and viewership. In my opinion, I think that the cross promotion helps the UFC more than NASCAR. But then again, I am more of a UFC fan than one of NASCAR.

The Sports Business Journal reported on the drop in ratings of NBC Sports Network as it rolled out its new name and brand last month. The article also comments on the fact that NBC found it difficult finding advertisers for the UFC when it was on the network.

For those that don’t know, NBC Sports Network was known as Versus prior to its re-branding at the start of the year. The SBJ article (subscription required) stated that NBC had a hard time finding advertisers for the UFC. Yet, UFC programming averaged 124,000 viewers on Versus. These ratings doubled the average for the channel. The article also states that the loss of the UFC has hurt NBC Sports Network ratings. Still, NBC described the UFC as “off brand,” a show that brought ratings but the network had a hard time finding a way to monetize it.

Payout Perspective:

While the UFC portion of the NBC Sports Network article was a small example compared to the overall theme of the article which was the slow start for the network, its an interesting take of the pull of the UFC. Its also an example of the obstacles the UFC still faces in trying to appeal to mainstream advertisers. We will see in the coming year if the UFC has problems on Fox, FX or Fuel with retaining and obtaining mainstream advertisers.

Does boxing need pro wrestling hype to sell itself? Saturday night heavyweight fighter David Haye crashed a post-fight press conference and challenged heavyweight Dereck Chisora.

To bolster the spectacle, Chisora inevitably asked Haye to say something to his face and a fight ensued. While the video is not the best, punches were exchanged and Chisora threatened to shoot Haye after the melee subsided. For those not following the story, Chisora lost earlier in the night to heavyweight champion Vladimir Klitschko. Chisora had slapped Klitschko at the weigh-ins and then spat in the face of Klitschko prior to the fight. Unfortunately, for all of the antics, Chisora did nothing of note against Klitschko in the ring.

While the outside the ring hype garnered some press, it does little for the sport. Showtime actually had a good card on Saturday but a post-fight press conference brawl is more interesting to the casual sports fan.

Last week, we opined about the future of the boxing business and whether it would ever return to network television. Do antics like Chisora and Haye spark interest in seeing these two fight in the ring? In the UFC, we’ve seen out of Octagon confrontations to sell fights. Chael Sonnen is a prime example of this with his quasi-pro wrestling rants (e.g. UFC 136). There’s also Anderson Silva putting on a Jabbawockeez mask and getting into the face of Vitor Belfort last year at weigh-ins.

The problem is that most people are not aware of Chisora or Haye as they are British boxers that have fought exclusively in Europe. Thus, North American fans wouldn’t know these guys unless they are hardcore boxing fans and/or follow boxing in Europe. The fact is that there are few Heavyweight fighters from the United States that can challenge the Klitschkos.

But the issue with Saturday night’s brawl might not be that there was a brawl. It might be the fact that the Heavyweight champion of the world defended his belt in Germany and that the fight could only be seen online at Epix for those of us in North America. Or, if you were in Manhattan, the jumbo screen in Times Square. In fact, Alexander Povetkin and Vitali Klitschko, other claimants to a heavyweight title, also will fight overseas and on Epix.  The Klitschkos are as popular in Germany as Jeremy Lin is to New York (there, I’ve satisfied the Lin requirement). So, its hard to argue that they fight anywhere else.

If boxing is going to make a comeback, it needs to develop a heavyweight division that is visible to North America. Being on HBO or Showtime would help as well. It appears that the Klitschko brothers have disappeared from the boxing landscape due to the fact they aren’t on one of the two big networks for fights. There are successful regional promotions, like Fight Club OC, that have maintained a steady fan base while promoting good fights. NBC Sports Network’s quarterly fight program could help if its willing to develop its fighters and back stories.

Getting back to the brawl. Its a spectacle but it doesn’t seem like much traction can be made of it. This probably was not a coordinated stunt since threatening to shoot someone is probably frowned upon.

We promise to be back with more MMA talk this week as we ramp up to the UFC’s visit to Japan this Saturday.

ESPN reports that HBO has secured the rights to the Floyd Mayweather-Miguel Cotto fight on May 5th. Despite a challenge from rival Showtime, HBO PPV will have the fight.

The rights acquisition was the first major move by former Showtime sports head Ken Hersman after Ross Greenburg left the post amidst the premium channel’s first loss of a Manny Pacquiao fight to Showtime. The fight will likely include its standard 24/7 lead-up to the big fight as well as additional marketing and cross-promotional opportunities with Time Warner’s other properties.

Payout Perspective:

It appears that HBO has stepped up its game since losing the Pacquiao-Mosley fight. Despite whether or not you like Floyd Mayweather, he is a boxing draw and made for promotional shows like HBO’s well-done “24/7” series. Showtime had an exceptional show last night but it was overshadowed by the Haye-Chisora brawl (more on this later). Unfortunately for Showtime, its first big fight in 2012, Victor Ortiz-Andre Berto, was put off due to an injury to Berto. As for Mayweather-Cotto, you can expect some definite hype based upon the success of Cotto since his loss to Manny Pacquiao and Floyd Mayweather being Floyd Mayweather. Certainly, 24/7 will be much more attractive considering Mayweather going to jail, Manny Pacquiao and his recent comments about Jeremy Lin.

The AP reports that WrestleMania will be held at MetLife Stadium in New Jersey. The WWE confirmed the reports at a press conference this past Thursday.

Via WWE press release:

Governor Christie was joined by WWE Chairman and CEO Vince McMahon, New York Football Giants President and CEO John Mara, New York Jets Chairman and CEO Woody Johnson, NYC & Company CEO, George Fertitta and WWE’s Senior Vice President of Special Events John Saboor to make the announcement at a press conference held earlier today. WWE Superstars John Cena®, Triple H®, Sheamus®, Mark Henry®, Brie and Nikki Bella™ and special guest Dwayne “The Rock®” Johnson were also on hand at MetLife Stadium for the historic announcement.

The Rock announced that he would be at the NY/NJ WrestleMania although its not known whether he’d be performing or just participating in another way. His appearance can help with the early promotion for the event.

Payout Perspective:

Even before this year’s Wrestlemania in Miami, the WWE has announced WrestleMania XXIX. Its a little surprising considering its held past Wrestlemanias at Madison Square Garden. But, the stadium venue falls in line with the company’s annual biggest event. Its a good acquisition for Met Life Stadium and a dress rehearsal for the Super Bowl which it will host in 2014. Despite what some may think of professional wrestling, the competition to host a Wrestlemania is as tough as it is to get a Super Bowl.

The positive economic impact it has for a city is noticeable as many fans travel to the city of the Wrestlemania and its a significant boost in tourism. The WWE has taken advantage of the event by promoting a week full of events to draw its fans to the host city. According to the WWE press release, “WrestleMania has generated more than $200 million in cumulative economic impact for its past four host regions.”

Last year, WrestleMania was held in Atlanta where it was reported it made a positive $62 million economic impact in the region. Likely, Miami will eclipse this number and next year’s WM in New York/New Jersey should be even more considering the attraction of visiting New York as well as the other activities that one could do in the area.

Zuffa filed its response to New York’s motions to dismiss its Equal Protection and Due Process causes of action in its Complaint. It also argued that the Court should consider the changed circumstances in determining the MMA ban in New York state.

As you may recall, New York filed a motion to dismiss on two causes of action in Zuffa’s Complaint and indicated that it may file a further motion to dismiss the rest of the lawsuit.

Zuffa’s 39 page response is broken into two sections. The first section addresses the issue of whether a court may look into a changed circumstance when conducting rational basis scrutiny under the Equal Protection and Due Process Clauses. Zuffa provides the court with a plethora of cases which have courts looking into changed circumstances while asserting that there are no rulings to the contrary.

The second section of the response brief contends that there are issues of fact with both its Equal Protection and Due Process claims  to survive the motion to dismiss.

(H/t: Fight Lawyer)

Payout Perspective:

As you may recall, the Court requested briefing on the following issue:

Defendants will submit a limited motion to dismiss addressing only the issue of whether due process and equal protection analysis requires the Court to determine whether there was a rational basis for the law at issue only at the time it was passed, or whether the Court must determine whether there is a rational basis for the law at present (in other words, whether the Court should take into account a change in factual circumstances that makes the law no longer rational, even if it had a rational basis at the time of passage). Defendants’ motion is due 1/27/12. Plaintiffs’ reply is due 2/17/12.Defendants’ response is due 3/2/12. (js) Modified on 1/9/2012 (tro). (Entered: 01/06/2012)

Essentially, will a court look at the changing circumstances that occurs over the course of time when considering if a law has a rational purpose.

Zuffa contends that the defendants should have briefed the court on the issue above instead of New York’s “full blown” motions to dismiss. Zuffa has an argument if you look at the “addressing only the issue” language in the first sentence of the court order. However, its likely that the court will rule on New York’s motions.

Zuffa, as most parties do in a brief, argue the differences in the opposition’s cited cases in its brief. Here, it argues that the cases cited by New York do not address the specific issue at hand: whether courts take into consideration changed circumstances when conducting a rational basis analysis under the Equal Protection and Due Process Clause.

In the second part of the response briefing, Zuffa identifies facts that should have its causes of action survive a motion to dismiss. Much of this has been detailed in the Complaint.

New York’s Reply Brief is due March 2nd. We will keep you posted and have more in the coming days.

TV Sports Ratings tweeted the ratings for UFC on Fuel 1 Wednesday night scored 217,000 viewers. It was the UFC’s first live event on Fuel TV.

The ratings come during Fuel TV’s free preview week which should have helped with the number. In comparison, UFC’s first two prelims shows on Fuel grabbed 148K and 144K viewers. (h/t MMA Supremacy).

Payout Perspective:

Good ratings for a live, mid-week fight card. Certainly, the free preview helped out but the numbers can be seen as promising for the UFC on Fuel. The good numbers come despite the Spike TV counter-programming and the fact that some people are still programmed to think that live UFC events are on Spike.

TUF 13 Finale – 7p

P2+:  694,000 viewers

UFC Unleashed – 10p

P2+:  661,000 viewers

Will boxing ever make it back to network TV? Kevin Iole of Yahoo! Sports reports on the possibility of boxing returning to network TV.

Showtime sports head Stephen Espinoza is optimistic about seeing boxing back in the mainstream and even opined that it may happen this year.

Via Yahoo! Sports:

“There’s a decent chance of it, maybe even a good chance of it happening, in fact,” Espinoza said. “Boxing, for all of its challenges, still has a very loyal fan base, especially in the Latino and African-American demographics. Boxing has shown that, at its highest level, boxing can capture the mainstream sports, and non-sports, population.

Payout Perspective:

We saw the return of boxing, albeit just 30 minute fight promos, to CBS with Showtime’s 360 series which promoted the Mosley-Pacquiao fight. With the new use of partnerships (i.e., Showtime-CBS) and the seeming trend for live sports as key programming, boxing could make it back to over the air television. If you think about it, snowboarding, skateboarding and even poker have been on network television in the past year yet we haven’t seen a big fight in quite some time.

Yesterday, we looked at whether boxing should change its business model. Showing fights on network television to promote the sport and its fighters could build and sustain a following. While promoters remain optimistic, nothing has been set. NBC Sports Network’s quarterly show is a good step in the right direction but promoters realize that the big money remains in PPV and the two premium cable channels.

Dave Metzler’s Wrestling Observer reports that Cox Communications is offering a lower-tier channel alternative for its subscribers. If this model is followed by other cable providers, it could mean less viewers for fans of MMA and pro wrestling.

According to the Wrestling Observer (subscription requried), the lower tier service Cox is offering includes the major networks (NBC, CBS, Fox), local affiliates and major networks which include WGN, TBS, CNN, Galavision and USA. The package is offered at $35 a month.

ESPN, Spike TV, SyFy, FX, MTV and likely Fuel would not be carried on this tier. Instead, these channels would be available for $60 a month package. Metzler points out that the lower-tier option could curtail the amount of fans that MMA fans could garner through television. The question will be how many subscribers will move to the lower tier and how many cable providers will follow the model outlined by Cox.

Payout Perspective:

The Cox economy cable model seems like it would hurt Bellator more than it would impact the UFC. With the UFC-Fox relationship, viewers subscribing to the new Cox tier would still have the Fox network fights.  If Spike is shut out of the lower tier, it would mean that Bellator would only be available online to those without access to the network. Also, much of the UFC’s content will be on FX and Fuel so those subscribers would be missing out on most UFC programming. This is a sign of the impact the economy is having on consumers as some will seek to curtail their cable bill by moving to a lower tier. With some consumers cord-cutting a lower priced cable tier seems like a reasonable way some cable providers will look at in trying to retain subscribers.

Kevin Iole of Yahoo! Sports posted an article on the need for HBO and Showtime to rethink its boxing business model. Iole points out that both networks are overpaying for license fees for its fights and a rethinking its business models may help the business.

Unlike the UFC pay issue, Iole points out that some fighters are being overpaid and not producing for their paycheck.

Via Yahoo! Sports:

The problem from a fan’s perspective, of course, is that far too often the boxers earn exorbitant purses for fighting ordinary, at best, competition. And that gives them less incentive to take on a stiffer fight in the future.

Iole points to HBO’s acquisition of the rematch between lightweights Lamont Peterson and Amir Khan. While its expected that most tickets for the Mandalay Bay will be comped, both fighters will make over $1 million.

The challenge is putting on compelling fights that fans will want to see. Iole believes making the fights are difficult due to the fighter paydays. Both HBO and Showtime are looking into ways to market boxing and present compelling television.

Iole suggests the following:

Only pay the fighters who are willing to take tough bouts; who perform when they get those big matches; who sell tickets on a regular basis.

Then, whatever money they save in salary, they can pour back into the sport by developing support programming that will actually help fans identify with the athletes and want to watch them compete.

Payout Perspective:

Its interesting that Iole’s suggestion is similar (not the same) to the UFC model. I don’t think I see this happening considering Showtime’s renewed interest in boxing and its hope to supplant HBO for big fights. One of the things that boxing needs to do is to introduce fighters to the public; present compelling stories so that viewers are drawn to watching their fights. NBC Sports Network is attempting to do this with its quarterly Fight Nights. We will see if Spike TV does something similar for its boxing programming (if it comes to fruition).

The other, of course, is to make the fights people want to see. (e.g., Mayweather-Pacquiao). Obviously, the promoters are the other factor in this equation which is a definite roadblock to a retooling of the boxing business model.

With HBO and Showtime actively competing for big events and offering top dollar plus the added benefit of utilizing the full force of its network partners for marketing and promotion, boxing could make a comeback. We’ll have to wait and see on how each will proceed.

MMA Fighting reports that next week’s UFC 144 will be four hours and include seven fights. In addition, the prelim bouts will be shown on FX starting at 5pm PT/8pm ET.

The show will mark the first time Zuffa will hold a card in Japan. The four hour card begins at 7pm PT/10pm ET which means that east coast viewers will have to stay up extra late for the card. Not sure if this will impact buys at all especially when you are talking about receiving an extra hour of fights.

Payout Perspective:

The additional hour and fight will be a bonus for those purchasing the PPV. More for your money? It should accommodate the 5 round championship fight between Edgar and Henderson without concern of running out of time. It will be interesting to see what happens if there are a lot of short fights on the card. How will the UFC compensate for it? We’ve seen in the past when fights run short, the UFC shows fights earlier on in the evening. But, with four hours, there could be a lot of filler time. I am interested to see how the UFC produces this show and if there will be anything different considering its the company’s first visit to Japan.

MMA Junkie had a recent article on the managers’ role in representing fighters. With the recent departures of Jose Aldo and Mauricio Rua from their representation, the need for managers has come into question.

The Junkie article looks at long time manager Alex Davis as he discusses the need for a fighter to have good management. He also addresses the question of whether top notch fighters need representation anymore. This comes on the heels of Rua’s statement (which could have been taken out of context) that the UFC does not want its fighters to have managers.

Via MMA Junkie:

“Some people will say that once a fighter reaches a level where he enters the UFC, he doesn’t need management anymore, but usually a manager has worked very hard to get him to that point without ever getting properly rewarded for his efforts,” Davis said. “Only once a fighter is at the top can a manager have a chance at making something in the deal, which is only fair. Not only that, but its not like, ‘Hey, great, now I am in the UFC. My problems are over!’ Far from that. Things get way more complicated.

Davis identifies more responsibility outside of just fighting that the fighter must consider once he makes it in the UFC. There are many tasks that a manager should handle while the fighter concentrates on training.

In addition, the manager may have contacts with sponsors and promoters in helping the younger fighter achieve his goals.

Payout Perspective:

Manager and agent may be two separate jobs or one in the same. Certainly fighters can have both or one individual to handle both duties.

One need only look to Matt Mitrione, Brandon Vera and Alistair Overeem more recently as examples of what happens when you have issues with management. Mitrione publicly fired his manager, Vera lost a year due to a contractual dispute and Overeem is currently in litigation with Golden Glory.

Then there are Georges St. Pierre and Frankie Edgar who left Shari Spencer to go with closer ties to manage their career.

Still, there are many MMA management agencies that take care of their fighters in securing sponsorships and public appearances. This can go a long way in getting fighters the visibility, notoriety and opportunity to increase the value of their own personal brand.

Heavy MMA had a good two part (one and two) series last year on the role of an agent.

The Junkie article points out the reasons that a good manager is necessary in a fighters’ career. Certainly, there are many responsibilities and tasks a manager needs to do in helping fighters prepare for their next fight while making sure they maximize their opportunities.

The question is how much is a manager worth to a fighter? For top tier fighters, do they need a manager? Can the fighter have someone do the same tasks for less, without having to give up a portion of their purse or sponsorship payout. We will see if consolidation of management duties becomes a trend in MMA. There is a definite need for good representation, but at what cost?

MMA Junkie reports Fuel TV will have a free preview week which coincides with Fuel TV’s first UFC event this week. The network hopes that the additional exposure will equate to more subscriptions.

This week’s free preview will give 43 million homes the opportunity to see Fuel TV programming. This includes this week’s UFC on Fuel 1 event Wednesday. Fuel TV execs hope that the preview will increase awareness of the network. Since the UFC-Fuel relationship began on New Year’s day, execs for the network have been pleased with the numbers.

Via MMA Junkie:

“Percentage-wise in primetime, we’re actually killing it,” said George Greenberg, FUEL TV’s executive vice president and general manager. “Our target audience of men 18-49 since January, it’s up over 80 percent. Our primetime viewers are up almost 230 percent.”

From the outset of the new deal, FX and FUEL TV have been targeted as the major beneficiaries of UFC programming. FUEL TV is set to offer 2000 hours of programming this year including six live events and pre- and post-event shows, and Greenberg said his hope is to have more.

Payout Perspective:

The hope is that major TV carriers will pick up Fuel as a network when the network is set to renegotiate this fall. As Dana White points out in the article, its the hope that the Fuel TV ratings, fueled (pun intended) by UFC programming, will attract carriers to pick up the network. Although the Fuel ratings are lower than Spike TV, it looks like the UFC-Fuel relationship has impacted the network in a positive way. This week’s preview should help garner more interest in the channel.

MMA Junkie reports that attorneys for Knockout Investments (KOI), owners of Golden Glory (GG), have secured a bond to garnish the wages of UFC heavyweight Alistair Overeem from UFC 141. The attorneys for KOI and GG obtained a second writ of attachment late last month.

An order for a second writ of attachment to garnish Overeem was entered January 27th and the entry of the order and posting of the bond took place on January 31st.

Via MMA Junkie:

This order asks $427,714.27 to be withheld by UFC parent company Zuffa LLC and deposited by check to a Nevada District Court. The amount is nearly double that of a previous order obtained the day of UFC 141, which was not executed when a surety bond was not deposited to the court.

According to the Junkie article, this court order requests garnishment of guaranteed payments from UFC 141 includes 30% of Overeem’s purse, PPV, ancillary and intellectual property payments which are to be paid to Overeem are due within 30 days of 141. Thus, they came due on January 30th.

Payout Perspective:

We explained last time the procedural reasons why KOI and GG could not garnish Overeem’s wages from 141. It was reported that due to the lack of bond, the Nevada State Athletic Commission paid Overeem his fight purse. We might assume from the order, that Zuffa has yet to pay Overeem in full for the other areas he is owed including the first payment of his $1 million signing bonus. If Overeem’s fight purse has been paid to Overeem, there will be another fight to get that money.

Initially, it appeared that the first attempt to garnish wages was a mere tactic in the litigation between the two camps. Now, it appears that KOI and GG mean business with the security bond. Expect further litigation maneuvers especially with Overeem set for one of the biggest fights (and bigger paydays) of the year against Junior dos Santos.

IP 360, a legal daily focusing on issues in intellectual property reports on the recent motion for sanctions in a trade secret lawsuit filed in Illinois involving an MMA reality show focusing on women. The producers claims that several fighters on Ultimate Women’s Challenge revealed results of the yet-to-be aired show.

UPDATE: 02/10/12 – Just to clarify, this lawsuit was filed last year and was covered by other web sites, including MMA HQ, which was one of the named web sites in the complaint that released results from the show. MMA Weekly also had a post on this last spring and was another web site named in the lawsuit. Sherdog was the third web site named as one that released info on the show prior to its airing. SEM claims that either the fighters involved in this lawsuit or their attorneys leaked the info of the results. These web sites were NOT parties to the lawsuit, just identified in the complaint.

The updated info last week relates to defendants’ motion seeking sanctions against SEM in claiming that the lawsuit lacks jurisdiction and the trade secret claim is baseless. So, the takeaway here is the fighters’ attorneys argument that SEM’s trade secret cause of action is without merit. According to defense counsel, in order to make a claim under Illinois Trade Secret law, there must be a showing of 1) an alleged trade secret; 2) misappropriated and 3) used by the defendants in its business. Defendants claim that SEM cannot make a claim under Illinois law considering that the fighters’ business is MMA and do not own or produce reality television.

Motion for Sanctions//

Here’s the background:

Essentially, Sean Morrison Entertainment, LLC (SEM) is suing a Wisconsin law firm and several of the women fighters that were contestants on the show for allegedly revealing results. The fighters claim that they were not paid for their participation on the show. In filing a claim for nonpayment, they revealed results of the show.

Ultimate Women’s Challenge finished production in September 2010 but has yet to air. Originally, it was scheduled for NBC although there are no signs it will be on NBC or its new sports network.

The fighters claim that the trade secret lawsuit filed by SEM has no merit since the fighters are not a business seeking to compete with SEM. Also, the fighters and law firm are requesting sanctions for what they perceive as a harassment lawsuit which only is meant to drive up litigation costs.

SEM claims that the wage lawsuit filed by the fighters should have been filed under seal so the public would not be able to access the facts of the lawsuit. Also, SEM claims, regardless of the lawsuit, attorneys and fighters leaked results of the show.

In its motion seeking sanctions, the fighters also argued that jurisdiction (the court which the lawsuit should be filed) in Illinois was not appropriate. And to reaffirm the fact that lawyers can be prickly, here’s a portion of the fighters’ response to the jurisdiction issue in SEM’s lawsuit:

Either plaintiffs’ counsel lacks the knowledge of a first-year law student or, more likely, its Illinois attorney chose to ignore the law and decided to file in Illinois anyway, because as an Illinois-based LLC, this jurisdiction would be most convenient for plaintiff and its attorney, (h/t IP 360)

A copy of the lawsuit and the participation agreement signed by the fighters are here at the Brooklyn Law School Trade Secret Institute page.

Payout Perspective:

UPDATE: The IP 360 article relates to the latest filings in this case in which the attorneys for the fighters have filed a motion for sanctions re SEM’s lawsuit. Notably, defense counsel oppose the jurisdiction as the lawsuit was filed in Illinois and the trade secret claim. The latest motion includes strong contentious language as Rule 11 sanctions are pretty serious. Expect a similar filing back from SEM’s counsel. When attorneys call out attorneys like this, it never is pretty.

It’s been awhile since we last reported on this show, July 2010 to be exact. It’s obviously been shelved indefinitely and will unlikely see television for a variety of reasons, the lawsuit being one of them. From SEM’s perspective, revealing results is the worst thing that could happen to a reality show premised on a tournament where the outcome is uncertain. From the fighters’ perspective, if they were not paid, and SEM denied payment, it seems like a claim for wages was the only other way to seek payment. The participation agreement (at paragraph 5) indicates that the fighters will be paid $1,000 plus $100 for each day on the show. Based on this, one can deduce from a fighter’s complaint for wage how long an individual lasted on the show. The participation agreement is an interesting read in the rights of the contestants and is a glimpse into the world of reality television contracts.

MMA Payout will keep track of this litigation as it progresses.

The UFC’s Dana White issued a statement after it was discovered by the Nevada State Athletic Commission that Nick Diaz tested positive for marijuana. Diaz was the only drug test of the fighters that competed at UFC 143 that was positive for an illegal substance.

The brief press release sent out by the UFC quoted White: “I am beyond disappointed that he tested positive for marijuana,” said White. “It is now in the hands of the Nevada State Athletic Commission.”

Payout Perspective:

It will be interesting what will happen with Diaz’s future in the UFC. 143 showed that he has the potential to carry a PPV. For one reason or another, the fans are drawn to him. The UFC knows he is a commodity and won’t release him. He’s already caused White headaches by no-showing press conferences and missing plane flights. We’ll see what tolerance White has for Diaz.

The short press release seems out of the ordinary since White does not ordinarily send out releases to address situations like this. If nothing else, it clarifies that he’s putting discipline action in the hand of the NSAC.

Dave Metzler of the Wrestling Observer reported the initial PPV buy rate for UFC 143 were approximately 400,000 buys. The numbers seem to be a pleasant surprise for the overall viewership for UFC 143 which includes improved prelim ratings on FX.

MMA Junkie reported that the UFC 143 prelims on FX earned 1.4 million viewers. While the prelim numbers still do not compare with Spike TV’s version of the prelims, its a significant improvement from 142 and the FX version is a 2 hour show.

Also, the UFC 143 weigh-ins on Fuel TV scored 38,000 viewers for the fighters just getting on the scale.

As for the success of UFC 143, Metzler indicated that the UFC Primetimes aided in the buy rate. Also, the Nick Diaz factor helped the buy rate as well since none of the other matches were heavily promoted.

Payout Perspective:

The 400K buy rate blows away my expectation of 250K buys. The buy rate is surprising and while the Diaz factor definitely helped, I also have to think the new marketing and promotion (including the new shows on Fuel) from the Fox deal was a factor. If indeed, Diaz carried this PPV, it will be interesting to see what happens with him next. Certainly, the UFC hoped that Diaz would have won which would set a great matchup with GSP. A rumored rematch with Condit was on and off most of Wednesday.

Frankly, it makes no sense for Condit to grant a rematch until he faces GSP to unify the titles. For Condit, he was originally forced to step aside for Diaz at 143 and then reinserted when GSP went down. Unless, the UFC forces the rematch, it makes no sense for Condit to do it.

From the UFC’s perspective, Diaz is a talented, but temperamental star on the rise. Arguably, the buy rate can be attributed in large portion to his persona. So, if you are the UFC, what do you do?

Longtime sponsor of the UFC, TapouT announced a new multi-year deal with the company and new title as “official lifestyle apparel partner” of the Ultimate Fighting Championships.

Via TapouT/UFC press release:

The multi-year deal gives TapouT exposure at UFC® events broadcast on Pay-Per-View, FX and FUEL TV via canvas logos, bumpers and billboards. In addition, TapouT will present the “Submission of the Night” feature on UFC broadcasts, as well as take part in on-site activation at UFC events globally. The agreement also includes an extensive digital media plan, with TapouT gaining visibility across multiple social media platforms and at UFC.com. Furthermore, TapouT obtains the rights to use “Official lifestyle apparel of UFC” on hangtags, point-of-sale and advertising.

TapouT, which is owned by New York-based ABG Tapout, LLC a division of Authentic Brands Group LLC, has a long history of sponsoring UFC athletes in the Octagon®.

“TapouT has been a big supporter of the sport and its athletes for a long time,” UFC President Dana White said. “We’re excited to have them as our official lifestyle apparel partner as we get ready for some of the biggest years in UFC history.”

“It’s been a dream of ours ever since we watched the first UFC to be an official partner of the best MMA organization in the world,” said TapouT co-founder, Dan “Punkass” Caldwell.

“The UFC is a world class professional sports organization with an aggressive global growth strategy in line with ours,” said James Salter, CEO of Authentic Brands Group. “This partnership with the UFC further reinforces TapouT’s commitment to supporting the sport, its athletes and beloved fans.”

“TapouT and the UFC have had a long standing relationship over the years, which would explain why many fans already consider us as the lifestyle brand of the UFC,” said James Ling, Authentic Brand Group’s SVP of Marketing and Global Brands in an email to MMAPayout.  “We made it official so there’s no doubt in the minds of retailers and consumers that TapouT is the leading lifestyle brand in the space.”

“TapouT and the UFC’s goals are in alignment as both continue to expand international reach and market penetration,” Ling added, “As the sport continues to grow and gets further ingrained into mainstream culture, we hope to see more fans wanting to represent the sport they love by supporting the brands that support the sport.”