Legacy Fighting Alliance has sued AXS TV and Anthem Sports & Entertainment in Dallas County District Court for alleged breach of contract for killing the promotion’s MMA broadcasts on the network. The network went over a revamp this past September in which the longtime-MMA promotion was yanked from the station.
The introduction to the lawsuit tells us what you need to know:
LFA claims that AXS and Anthem refused to air LFA events 9 times from September through December 2019. The promotion claims that AXS’s CFO and General Counsel requested in writing that LFA agree to extend its Agreement with LFA twice and for events through December 2019. But, according to LFA, AXS repudiated the contract in not televising the events.
LFA is claiming that it lost in excess of $20,000 per cancelled fight plus lost profits. As a result, LFA lost ancillary revenues from third party contracts that provide services. “Perhaps the most troubling damage that LFA suffered as a result of Defendants’ wrongful conduct has been the loss of LFA’s hard-earned trust by athletes whose careers are made from being featured in LFA promoted fights.”
The breach is predicated on a Production and Distribution Agreement although the contract was not publicly shared and/or attached to the lawsuit. The lawsuit states that LFA and AXS entered into the Agreement on August 25, 2016. According to the lawsuit, the Agreement would hold up to 300 MMA events and AXS would produce and distribute the events.
LFA also refers to a “cancellation fee” which requires that the non-breaching party pay $20,000 for each Event cancelled five days prior to the Event, $10,000 for each Event cancelled six to ten days prior to the Event plus all third-party fees.
LFA states that an Option on the Agreement was exercised in 2018. The option, according to LFA, required AXS to compensate LFA $25,000 per each 2018 Event from January to December 2018. It again exercised an option for 2019 which would compensate LFA $27,500 for each completed 2019 Event.
LFA claims breach of contract against AXS and Anthem. It also claims tortious interference with a contract against both. The tortious interference claim refers to it’s losses with third parties it contracts with in anticipation of the Events that were subsequently cancelled.
LFA Lawsuit by MMA Payout on Scribd
Payout Perspective:
Obviously, the change in management may have come into play in this lawsuit as the takeover by Anthem was swift and there was an overhaul in personnel and programming at the time. LFA was one of the victims of the takeover. The question is whether AXS assigned its contract to Anthem and whether Anthem had the right to terminate a contract it had inherited in the purchase of the company. Certainly, LFA has a viable argument with respect to the contract but since the contract was not made public, we are uncertain of the clauses which may have allowed an exit from the Agreement. Whether or not Anthem could legally repudiate the Agreement will be a question for the court. There is also the possibility that AXS has a claim against Anthem as it did not take over the assignment of the contract. MMA Payout will keep you posted.
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