MMA Junkie reports UFC Flyweight Ray Borg has been sued by his former management agency in New Mexico for fraud, breach of contract, the implied covenant of good faith and fair dealing among other causes of action.
Borg recently pulled out of a fight due to health issues with his newborn son. Prior to that, he pulled out of UFC 223 due to the infamous bus incident where Conor McGregor through a guard railing against the bus, breaking a window.
The lawsuit stems from an August 2013 contract agreement in which Wild Bunch Management, LLC signed Borg. The contract, according to the lawsuit, stated that Borg would fight 3 MMA bouts per year.
The lawsuit lists 5 UFC fights Borg had while under management with the Plaintiff. The agency claims it was not paid by Borg from his UFC fights. It appears that the sides wanted to part ways in 2014 and the two sides entered into a Covenant Not to Compete which allegedly stated that Borg could not teach martial arts within a 50-mile radius of Defendant’s gym. It appears that Borg breached this agreement and thus is the subject of the lawsuit.
The Defendant is claiming a breach of contract in two different contracts with Borg. First, the failure to pay the Defendant their share of the purse Borg earned in his fights in the UFC. Secondly, they claim that Borg breached the Covenant Not to Compete. Defendant also claims that Borg procured “trade secrets” while with the Defendant.
Payout Perspective:
Borg stated that this was a bad time in his life for the lawsuit.
The guys timing of this really seems to be good considering what is going on. Bravo 👏🏼 lol stolen trade secrets. https://t.co/zBt8lJlOGU
— Ray Borg (@tazmexufc) May 3, 2018
The issue looks like has been brewing for some time and just gone public. The fact that this is the “Amended” Complaint we seen from the Junkie article. It may have been bumping up against a statute of limitations issue. It appears that Borg may have supplemented his fight income by teaching at another gym which likely drew the ire of the Defendant.
Also, of note, Defendant didn’t seem to push not being paid for his UFC representation but for attempting to cut into the martial arts instruction market. We will see if the covenant not to compete is legal under the laws in New Mexico and perhaps the contract between Borg and Wild Bunch.
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