Agents Attempting to Block Showtime Auction


Ken Pavia. Photo by Tracy Lee/CombatLifestyle.com.

Just like ProElite itself, multiple mixed martial arts agents are coming together to attempt to block a public auction announced for November 17 in which Showtime Networks will attempt to sell off the remaining assets of ProElite and everything under its banner in order to repay two defaulted promissory notes for $4 million that Showtime lent to ProElite over the last year.

Ken Pavia, who represents a slew of notable names in the world of MMA, has teamed up with the likes of Ed Soares, Monte Cox, and Cesar Gracie and issued a formal press release indicating that they are all prepared to challenge whoever purchases the contracts of their fighters in court.

The complete release is after the jump.

Huntington Beach, CA November 10, 2008 – We as sports agents battle against each other every day for the best opportunities for our clients. Ultimately we realize the struggle is always about the client’s best interest. That is why we as the elite agents in MMA today have band together to address what we perceive to be a grave injustice.

On November 5th in an SEC filing and in related advertisements, Showtime Networks Inc. announced its intention to liquidate “Collateral” as defined by the assets of Pro Elite and their related entities at auction scheduled for November 17th. Included in these assets are certain fighter contracts. These fighters are our clients.

Individually we consummated promotional agreements with Pro Elite. These agreements were made based on a multiplicity of factors including but not limited to relationships with certain Pro Elite personnel, venues, television exposure, jurisdictional concerns, public relations support, and numerous other intangibles. These considerations are not readily transferable.

Whether or not these contracts are legally transferable is a matter of law. What is not at issue however is Showtime’s disclaimer that the assets are being sold “as-is, where-is basis, without recourse, warranty or guarantee of any kind.” We intend to fight the lawful ability to transfer these assets, and as we believe these are personal services contracts, we do not believe there is an obligation to perform if transferred. With pooled resources we are prepared to fight this issue.

The unity of this effort is unprecedented and the message that is being sent is clear. Absent significant pre-established negotiated terms, do not bid on these contracts unless you are prepared to fight the challenge to their legality. It is our intention to honor our commitment to Pro Elite, but if Pro Elite is not able to perform in accordance with the contractual terms, the fighters should be granted unrestricted free agency with the unfettered ability to enter the marketplace.

Ken Pavia

KenPavia@MMAagents.com
http://www.MMAagents.com

Monte Cox
Ed Soares
Matt Stansell
Bob Cook
Chas Bowling
Cesar Gracie

Contact:
Please direct all inquiries to info@MMAagents.com

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