Rousey’s trainer files for Chapter 7 bankruptcy

Edmond Tarverdyan has filed for Chapter 7 bankruptcy in Los Angeles.  Tarverdyan, the primary trainer for UFC bantamweight champion filed for bankruptcy protection on July 29, 2015.

For most people, there are two types of bankruptcy:  Chapter 7 and Chapter 13.  Chapter 7 is a liquidation of all of your personal assets while discharging most of the individual’s unsecured debts.  Chapter 13 is a reorganization of debts.  Here, Tarverdyan is seeking a Chapter 7.

UPDATED and CORRECTION:  Slight correction.  The Bankruptcy Trustee actually is requesting the production of documents of Bank of America and a request to examine BOA by November 30th at the Trustee’s office in LA.  This should relate to BOA’s documents and the veracity of their claim as they relate to Tarverdyan.  The same will likely occur from other creditors.  Still, Tarverdyan will be examined at some point by the trustee as well as the creditors seeking repayment of debts.

At the examination, he’ll be asked to produce documents pertaining to transaction made related to his creditor’s accounts.  For example, BOA is requesting he produce all documents, records, information and statements between January 1, 2008 and July 29, 2015.  Specifically, this relates to any credit card purchases made.

According to his Chapter 7 Bankruptcy filing obtained by MMA Payout, he has estimated assets between $0-$50,000 and estimated liabilities between $500,000 and $1 million.

Interesting enough, Tarverdyan’s Glendale Fighting Club where Rousey trains and that presumably Tarvedyan owns, is not listed as an asset in his bankruptcy filing.  The bankruptcy trustee is looking into this potential asset and determining when ownership may have been transferred to another person or entity.  The trustee may seek to liquidate (shut down) GFC if it is determined that the transfer of ownership was not legal.

Tarverdyan states that he does not own a home and does not make a salary.  Per the Bankruptcy filing, their monthly expenditures ($5,380) are $110 more than their income.  For those wondering, in California, the median income for a family of four (Tarverdyan is married with two children) is $79,418 per Bankruptcy standards.

Tarverdyan also admitted in legal filings that he has not filed for taxes for some time stating he was not required to file in 2013 and 2014.

The filing states that he has liabilities (debt) of $725,045.00.

Tarverdyan attempted to file for Chapter 7 Bankruptcy in May but that was subsequently dismissed on July 23^rd.  He refiled less than a week later.

Payout Perspective:

Tarverdyan will now appear at a meeting of the creditors (commonly known in the bankruptcy world as a “341” hearing named after the section of the Bankruptcy code which calls for this hearing).  The 341 hearing is relatively short in which the Bankruptcy Trustee (think of the person as the judge in this case) will ask questions of the debtor.  At this meeting, creditors may show up and ask questions of Tarverdyan.  Creditors have already asked for supplemental proceedings they will be able to depose Tarverdyan to find his assets (if any).

Perhaps Tarverdyan’s money problems relate to the recent criticism by Ronda Rousey’s mother as she called him a “bad person.”

Some thoughts on Tarverdyan’s bankruptcy:

• In this perceived egalitarian MMA community where fans, fighters and managers want fighters to make more, what about the people that help them? Rousey is the highest paid UFC fighter (if we believe her interview on “Ellen”) yet none of her managers or handlers or Tarverdyan himself thought that he should be compensated?  Tarverdyan was going through these financial problems through Rousey’s fight camp and filed for bankruptcy just days before UFC 190.
• Roots of Fight made a Glendale Fighting Club shirt. Did Tarverdyan get a cut of the sales of the shirts?
• What about GFC’s other sources of revenue (i.e., classes, t-shirts)
• Darin Harvey had a similar issue working with Rousey in which he essentially worked for free. The former manager worked in the red from managing Rousey.  Of course, the CSAC released Rousey from her fight contract as the commission determined Harvey did not follow the contractual rules of fight management.  Here, one might conclude that Tarverdyan did not make Rousey sign a contract to train her.
• Maybe the only concern for the UFC here is whether Rousey may be tied to this in some way.  Moreover, would or could she have to submit to a deposition?

We might assume that Tarverdyan had an agreement in which another entity was paid for his work.  This may negate the questions about why he wasn’t being paid.  This might explain the lack of income and GFC not showing on his bankruptcy paperwork.  Of course, if it is discovered that you are committing some sort of fraudulent scheme to avoid creditors, your bankruptcy discharge may be denied.  At that point, the creditors could take everything.