Bellator's right of first refusal

So I got a copy of the complaint, which includes the right of first refusal provision in dispute (it also contains the Zuffa/Bellator offer, which I will dissect in a separate thread if anyone is interested)...

The pertinent provisions of this right of first refusal read as follows:

In the event Bellator and Alvarez are unable to reach an agreement during a 90 day good faith, exclusive negotiation period (which I believe Bellator waived)...."Fighter may negotiate with other promotional entities, subject to Promotor's right to match the terms of any agreement offered to Fighter by such other promotional entity. Promoter's right to match shall begin at the end of the [negotiation period] and last for 1 year. Fighter shall provide Promoter with prompt written notice of any such offer...such notice shall constitute an exclusive, irrevocable offer to contract with Promoter on the same terms and conditions..."

 

Ok, so a few important things here. First, Bellator is required to match the "terms" of the third party offer, which likely means the actual words (which they did), and not the value or overall compensation of the third party offer. This is good for Bellator obviously since matching value for value with the UFC would be impossible. This would explain Alvarez's lobster/mcdonald's comparison. Although they did match the terms (ie dinner), they didnt match the value (lobster v. mcdonalds).

In addition, after the fighter has an offer it likes and shows it to Bellator, the fighter must offer the same terms to Bellator, meaning, Eddie only gets one bite of the apple. Zuffa kind of screwed up by not offering better terms that would make it difficult for Bellator to match. They can't now go back to the drawing board and make a new offer because Eddie is obligated to offer these terms to Bellator.

That being said, this provision could have been drafted much more favorably to Bellator by its attorneys.Instead of requiring Bellator to match the terms, they could have required Bellator to match the material, guaranteed, monetary terms of the third party offer. By requiring Bellator to match the terms generally, you could think of all kinds of ways to tweak the third party offer which would make it virtually impossible for Bellator to match. I imagine Bellator will be rewording its standard contracts in light of these events....

And on an interesting side note, Bellator did indicate in the complaint that it intended for Eddie's next bout to be PPV, so it looks like Bellator will be on PPV sooner rather than later.

 

Orcus Knows MMA Better Than Goku - 


So I got a copy of the complaint, which includes the right of first refusal provision in dispute (it also contains the Zuffa/Bellator offer, which I will dissect in a separate thread if anyone is interested)...



The pertinent provisions of this right of first refusal read as follows:



In the event Bellator and Alvarez are unable to reach an agreement during a 90 day good faith, exclusive negotiation period (which I believe Bellator waived)...."Fighter may negotiate with other promotional entities, subject to Promotor's right to match the terms of any agreement offered to Fighter by such other promotional entity. Promoter's right to match shall begin at the end of the [negotiation period] and last for 1 year. Fighter shall provide Promoter with prompt written notice of any such offer...such notice shall constitute an exclusive, irrevocable offer to contract with Promoter on the same terms and conditions..."



 



Ok, so a few important things here. First, Bellator is required to match the "terms" of the third party offer, which likely means the actual words (which they did), and not the value or overall compensation of the third party offer. This is good for Bellator obviously since matching value for value with the UFC would be impossible. This would explain Alvarez's lobster/mcdonald's comparison. Although they did match the terms (ie dinner), they didnt match the value (lobster v. mcdonalds).



In addition, after the fighter has an offer it likes and shows it to Bellator, the fighter must offer the same terms to Bellator, meaning, Eddie only gets one bite of the apple. Zuffa kind of screwed up by not offering better terms that would make it difficult for Bellator to match. They can't now go back to the drawing board and make a new offer because Eddie is obligated to offer these terms to Bellator.



That being said, this provision could have been drafted much more favorably to Bellator by its attorneys.Instead of requiring Bellator to match the terms, they could have required Bellator to match the material, guaranteed, monetary terms of the third party offer. By requiring Bellator to match the terms generally, you could think of all kinds of ways to tweak the third party offer which would make it virtually impossible for Bellator to match. I imagine Bellator will be rewording its standard contracts in light of these events....



And on an interesting side note, Bellator did indicate in the complaint that it intended for Eddie's next bout to be PPV, so it looks like Bellator will be on PPV sooner rather than later.



 


first of all. Bellator wont be doing ppv anytime soon. Honestly it doesnt matter how these contracts are. They have the potential to screw with fighters careers if they dont wish to stay with bellator. They are already proving to not be popular and are portraying bellator as a small time league that is trying to sue everybody to compete with the big boys. BUt its a pathetic strategy and will lose them fans and make new upcoming fighters even more reluctant to sign with them. This is a lose lose for them. They really should just let eddie go instead of bullying him into staying.

you are omitting a key part of your own thread. "terms and conditions" matching terms might be possible for bellator but replicating conditions is impossible for bellator vs what eddie can get from the ufc.

madmav - 


you are omitting a key part of your own thread. "terms and conditions" matching terms might be possible for bellator but replicating conditions is impossible for bellator vs what eddie can get from the ufc.



ehhh...first of all the language only requires Bellator to match the "terms"....and anyways, terms and conditions means the same thing essentially, the words of the contract...conditions does not mean the value or the scent or the weather....

Lobo8 - 
Orcus Knows MMA Better Than Goku - 


So I got a copy of the complaint, which includes the right of first refusal provision in dispute (it also contains the Zuffa/Bellator offer, which I will dissect in a separate thread if anyone is interested)...



The pertinent provisions of this right of first refusal read as follows:



In the event Bellator and Alvarez are unable to reach an agreement during a 90 day good faith, exclusive negotiation period (which I believe Bellator waived)...."Fighter may negotiate with other promotional entities, subject to Promotor's right to match the terms of any agreement offered to Fighter by such other promotional entity. Promoter's right to match shall begin at the end of the [negotiation period] and last for 1 year. Fighter shall provide Promoter with prompt written notice of any such offer...such notice shall constitute an exclusive, irrevocable offer to contract with Promoter on the same terms and conditions..."



 



Ok, so a few important things here. First, Bellator is required to match the "terms" of the third party offer, which likely means the actual words (which they did), and not the value or overall compensation of the third party offer. This is good for Bellator obviously since matching value for value with the UFC would be impossible. This would explain Alvarez's lobster/mcdonald's comparison. Although they did match the terms (ie dinner), they didnt match the value (lobster v. mcdonalds).



In addition, after the fighter has an offer it likes and shows it to Bellator, the fighter must offer the same terms to Bellator, meaning, Eddie only gets one bite of the apple. Zuffa kind of screwed up by not offering better terms that would make it difficult for Bellator to match. They can't now go back to the drawing board and make a new offer because Eddie is obligated to offer these terms to Bellator.



That being said, this provision could have been drafted much more favorably to Bellator by its attorneys.Instead of requiring Bellator to match the terms, they could have required Bellator to match the material, guaranteed, monetary terms of the third party offer. By requiring Bellator to match the terms generally, you could think of all kinds of ways to tweak the third party offer which would make it virtually impossible for Bellator to match. I imagine Bellator will be rewording its standard contracts in light of these events....



And on an interesting side note, Bellator did indicate in the complaint that it intended for Eddie's next bout to be PPV, so it looks like Bellator will be on PPV sooner rather than later.



 


first of all. Bellator wont be doing ppv anytime soon. Honestly it doesnt matter how these contracts are. They have the potential to screw with fighters careers if they dont wish to stay with bellator. They are already proving to not be popular and are portraying bellator as a small time league that is trying to sue everybody to compete with the big boys. BUt its a pathetic strategy and will lose them fans and make new upcoming fighters even more reluctant to sign with them. This is a lose lose for them. They really should just let eddie go instead of bullying him into staying.


lol...first you have no idea when bellator will do a ppv...they could easily do a ustream ppv on the cheap if they wanted to...also, what do you mean it doesnt matter how these contracts are...

goku is a lawyer?

 

 

So what do you think? Assuming he wants to go to Zuffa, does he have a chance of getting out of it?

Gokudamus stole my name - So what do you think? Assuming he wants to go to Zuffa, does he have a chance of getting out of it?


i think bellator has a very good argument that they matched the terms. They literally copied and pasted zuffa's entire offer and just substituted bellator for zuffa, spike for fox etc. In this situation, if eddie wanted to make bellator to match the value, he could have required that bellator insert that specically in the original contract. Also, zuffa could have guaranteed that eddie be on a ppv in his first or in subsequent fights, or guaranteed higher pay or guaranteed a certain number of buys, but they didnt.



Ultimately I think they will settle and alvarez or the ufc will buyout the contract.

the counterargument is that ufc offered fox while bellator offered spike, which is not an exact match of the terms and may be considered material..but on the other issues, I think they matched...

Good stuff! Thanks!!! Phone Post

The judge may look at it and agree terms were matched. If the language is vague the judge could determine its an unfair contract. I think this will take awhile based on my experience on an employment contract dispute. I was sued for breach of an employment contract , it was 2 years before the judge ruled. Many court dates ,many arguments. I won in the end , but it was taxing and expensive. I'm now trying to recoup my attorney fees. Phone Post

And on an interesting side note, Bellator did indicate in the complaint that it intended for Eddie's next bout to be PPV, so it looks like Bellator will be on PPV sooner rather than later.

Riiiiiiiiiiiiiiiiiiiiiiiiiiiiiight

Orcus Knows MMA Better Than Goku - 
Lobo8 - 
Orcus Knows MMA Better Than Goku - 


So I got a copy of the complaint, which includes the right of first refusal provision in dispute (it also contains the Zuffa/Bellator offer, which I will dissect in a separate thread if anyone is interested)...



The pertinent provisions of this right of first refusal read as follows:



In the event Bellator and Alvarez are unable to reach an agreement during a 90 day good faith, exclusive negotiation period (which I believe Bellator waived)...."Fighter may negotiate with other promotional entities, subject to Promotor's right to match the terms of any agreement offered to Fighter by such other promotional entity. Promoter's right to match shall begin at the end of the [negotiation period] and last for 1 year. Fighter shall provide Promoter with prompt written notice of any such offer...such notice shall constitute an exclusive, irrevocable offer to contract with Promoter on the same terms and conditions..."



 



Ok, so a few important things here. First, Bellator is required to match the "terms" of the third party offer, which likely means the actual words (which they did), and not the value or overall compensation of the third party offer. This is good for Bellator obviously since matching value for value with the UFC would be impossible. This would explain Alvarez's lobster/mcdonald's comparison. Although they did match the terms (ie dinner), they didnt match the value (lobster v. mcdonalds).



In addition, after the fighter has an offer it likes and shows it to Bellator, the fighter must offer the same terms to Bellator, meaning, Eddie only gets one bite of the apple. Zuffa kind of screwed up by not offering better terms that would make it difficult for Bellator to match. They can't now go back to the drawing board and make a new offer because Eddie is obligated to offer these terms to Bellator.



That being said, this provision could have been drafted much more favorably to Bellator by its attorneys.Instead of requiring Bellator to match the terms, they could have required Bellator to match the material, guaranteed, monetary terms of the third party offer. By requiring Bellator to match the terms generally, you could think of all kinds of ways to tweak the third party offer which would make it virtually impossible for Bellator to match. I imagine Bellator will be rewording its standard contracts in light of these events....



And on an interesting side note, Bellator did indicate in the complaint that it intended for Eddie's next bout to be PPV, so it looks like Bellator will be on PPV sooner rather than later.



 


first of all. Bellator wont be doing ppv anytime soon. Honestly it doesnt matter how these contracts are. They have the potential to screw with fighters careers if they dont wish to stay with bellator. They are already proving to not be popular and are portraying bellator as a small time league that is trying to sue everybody to compete with the big boys. BUt its a pathetic strategy and will lose them fans and make new upcoming fighters even more reluctant to sign with them. This is a lose lose for them. They really should just let eddie go instead of bullying him into staying.


lol...first you have no idea when bellator will do a ppv...they could easily do a ustream ppv on the cheap if they wanted to...also, what do you mean it doesnt matter how these contracts are...


Of course Im not 100% sure about the ppv thing but its really not too smart of them to do that. Their focus should be on spike for a few years. No way they do a ppv anytime soon, and when they do i guarantee it wont be on the web. These guys are shooting for the real money in tv ppvs. Their goal right now is to build their brand and get a decent sized fan base that extends past the hardcores. And its going to take a while to do that. As for the other thing. I meant it in reference to its pointless to play this game with their fighters. I know their trying to protect their talent but this is not the way to do it. All this does for them is make them look like the bad guys and scare away other up and coming fighters from signing with them.

Lobo8 - 
Orcus Knows MMA Better Than Goku - 
Lobo8 - 
Orcus Knows MMA Better Than Goku - 


So I got a copy of the complaint, which includes the right of first refusal provision in dispute (it also contains the Zuffa/Bellator offer, which I will dissect in a separate thread if anyone is interested)...



The pertinent provisions of this right of first refusal read as follows:



In the event Bellator and Alvarez are unable to reach an agreement during a 90 day good faith, exclusive negotiation period (which I believe Bellator waived)...."Fighter may negotiate with other promotional entities, subject to Promotor's right to match the terms of any agreement offered to Fighter by such other promotional entity. Promoter's right to match shall begin at the end of the [negotiation period] and last for 1 year. Fighter shall provide Promoter with prompt written notice of any such offer...such notice shall constitute an exclusive, irrevocable offer to contract with Promoter on the same terms and conditions..."



 



Ok, so a few important things here. First, Bellator is required to match the "terms" of the third party offer, which likely means the actual words (which they did), and not the value or overall compensation of the third party offer. This is good for Bellator obviously since matching value for value with the UFC would be impossible. This would explain Alvarez's lobster/mcdonald's comparison. Although they did match the terms (ie dinner), they didnt match the value (lobster v. mcdonalds).



In addition, after the fighter has an offer it likes and shows it to Bellator, the fighter must offer the same terms to Bellator, meaning, Eddie only gets one bite of the apple. Zuffa kind of screwed up by not offering better terms that would make it difficult for Bellator to match. They can't now go back to the drawing board and make a new offer because Eddie is obligated to offer these terms to Bellator.



That being said, this provision could have been drafted much more favorably to Bellator by its attorneys.Instead of requiring Bellator to match the terms, they could have required Bellator to match the material, guaranteed, monetary terms of the third party offer. By requiring Bellator to match the terms generally, you could think of all kinds of ways to tweak the third party offer which would make it virtually impossible for Bellator to match. I imagine Bellator will be rewording its standard contracts in light of these events....



And on an interesting side note, Bellator did indicate in the complaint that it intended for Eddie's next bout to be PPV, so it looks like Bellator will be on PPV sooner rather than later.



 


first of all. Bellator wont be doing ppv anytime soon. Honestly it doesnt matter how these contracts are. They have the potential to screw with fighters careers if they dont wish to stay with bellator. They are already proving to not be popular and are portraying bellator as a small time league that is trying to sue everybody to compete with the big boys. BUt its a pathetic strategy and will lose them fans and make new upcoming fighters even more reluctant to sign with them. This is a lose lose for them. They really should just let eddie go instead of bullying him into staying.


lol...first you have no idea when bellator will do a ppv...they could easily do a ustream ppv on the cheap if they wanted to...also, what do you mean it doesnt matter how these contracts are...


Of course Im not 100% sure about the ppv thing but its really not too smart of them to do that. Their focus should be on spike for a few years. No way they do a ppv anytime soon, and when they do i guarantee it wont be on the web. These guys are shooting for the real money in tv ppvs. Their goal right now is to build their brand and get a decent sized fan base that extends past the hardcores. And its going to take a while to do that. As for the other thing. I meant it in reference to its pointless to play this game with their fighters. I know their trying to protect their talent but this is not the way to do it. All this does for them is make them look like the bad guys and scare away other up and coming fighters from signing with them.


ok, then how do they protect their talent? how do they protect against investing all kinds of money and time in a fighter only to have the fighter get all that benefit and pay and then walk away?