MMA Junkie reports that Ronda Rousey and her estranged management group, Fight Tribe Management, are in an arbitration hearing today (Friday) before the California State Athletic Commission to determine the validity of Fight Tribe’s representation agreement with the UFC bantamweight champion.
Two weeks ago, Fight Tribe Management filed a petition for arbitration in Los Angeles Superior Court to determine the validity of the representation agreement. Under California Business and Professions Code §18640 CSAC has the “sole direction, management, control of and jurisdiction” of mixed martial arts and can hear disputes such as these.
According to the Junkie article, Foster, along with assistance from the California attorney general, will review the briefing submitted by both parties, hear testimony from witnesses at the arbitration hearing and render a decision.
There appears to be a dispute on the validity of the contract and it’s not clear whether the CSAC ruling will end this dispute.
In its filing with the Court on March 7th, Fight Tribe indicated that it wanted the issues concerning the dispute confidential based on the terms of the contract entered into by Rousey and Fight Tribe.
Payout Perspective:
From its initial filing on March 7th, the disputed contract issue has not been made public although the commission’s decision will be public record. So, it may be that we will not hear about the contractual issues in dispute until the CSAC renders its opinion sometime next week. Even with the CSAC decision, the legal wrangling behind this dispute may not be over. MMA Payout will keep you posted.
My guess is its over percentages and future earnings. Rousey probably crapped her pants when she realized she signed a deal that looked good but was actually in someone else’s favor. A lot of fighters and entertainers have no idea about business and when they get there yearly statements, notice this was filed about 30 days after W2 go out, she probably was in shock as to the amount that she made i.e. being far below what she thought and figured from UFC purses and extras. Also California has very high income taxes. And now that other offers are coming in she thinks she can get out of her deal, maybe she can, but most of those contracts, especially in CA are rock solid. Obviously there are interests and reasons this is being done behind closed doors. God forbid the public actually got to see what little some entertainers make compared to what is reported in the press.