UFC/Xyience Case Gets Dirtier; Zuffa Sues Former PRIDE Owners
(Xyience’s public flameout continues.)
UnlimitedFightNews is without a doubt the ugliest website on the Internet, and we don’t actually recommend clicking on that link, as it will likely cause your computer to crash under the weight of the dozens of clashing ads and pimped-out-MySpace-page-esque design. Nevertheless, the man behind it, Rich Bergeron, is a sharp journalist who has been uncovering the shady finances of Xyience since late 2006, long before any other MMA website was talking about it. For his troubles, he was hit by a $25 million defamation lawsuit by Xyience, and ordered to remove his Xyience-related writings from his website. FightOpinion reports that there will be a hearing in Las Vegas tomorrow to determine the validity of the suit. If that hearing doesn’t go Xyience’s way, there will be a hearing next week on Bergeron’s motion to dismiss the lawsuit altogether; like a fool, Bergeron is representing himself.
So, that’s the backstory. What we wanted to share with you is the video that Bergeron posted to YouTube yesterday, which adds a new element to the Xyience bankruptcy scandal. Like Bergeron’s website, the video is a batshit-crazy eyesore, and you might have a seizure before you get halfway through it, so we’ll summarize: In order to secure a $325 million loan, the UFC needed to prove a certain amount of annual revenue from sponsors. So, they passed Xyience a bunch of money through questionable means, and Xyience passed it back to show that the UFC was taking in sponsorship revenue; without this arrangement, the UFC wouldn’t have gotten the loan. And now the video…
So, that theory may explain why Zuffa has continued to support Xyience even though it wouldn’t seem to be in their best interest financially. We previously suggested that personal loyalty could have been the explanation, which sounds pretty stupid in retrospect. If you have a few hours to kill, you can read all of Bergeron’s Xyience reports here.
Though Zuffa could eventually be defendants in a fraud case, they’ll first be plaintiffs in one. According to Sherdog, Pride FC Worldwide Holdings — a company created after the sale of Pride to Frank and Lorenzo Fertitta — has filed a lawsuit against Dream Stage Entertainment and its president Nobuyuki Sakakibara, claiming the defrauding of millions of dollars from the sale of Pride FC and Pride Bushido. It’s possible that Pride’s former association with gangsters made full disclosure of their finances tricky at best. Sakakibara is reportedly preparing his own suit against the Fertittas for breach of contract due to Zuffa’s decision to shut Pride down after the sale was complete. We’ll continue to update you on these ongoing legal clusterfucks as they develop…
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February 6th, 2008 at 10:58 am
That really is the ugliest website I have ever seen. Impossible to navigate.
February 6th, 2008 at 1:02 pm
Your talking shit about Xyiece again, i’ll tell you this………Im a bald money grabbing fucker and you fight fans can all pay up or shut up…bitch!
February 6th, 2008 at 1:13 pm
Ugly, ugly site.. Horrific video.. I can barely see straight now and it’s as if my brain has turned inside out.
Either way, I personally don’t find this as important as Mr Hambergeron does, but I’ll tell you what is important, that BROCK LESNAR LOST WAHOOOOO!!! You’ve heard of the Achilles Heel, well now we’ve got the Lesnar Foot. That big dummy with his stupid foot causing him to lose! Guffaw guffaw guffaw hee-yaw hee-yaw!!
/kicks like a jackass
February 6th, 2008 at 8:53 pm
Sorry I’m not the best web-designer or video producer. Obviously writing is my better talent. I run and design the site by myself, so it’s the best I could do. When Xyience loses the case, I will have enough money to get a professional redesign done. As for defending myself, I had no choice. I didn’t have the $50,000 retainer most lawyers asked me for. Considering that I’ve so far managed to get the damage claim reduced from $25,000,000 to $84,000, I think I’ve done a fairly decent job. We’ll see for sure tomorrow and on the 14th, but either way I’m not worried.
February 7th, 2008 at 8:48 pm
FYI, about the Xyience stuff . . .
The summary you give is of a youtube video that excerpts the Fight Opinion Radio show I host. (How’s that for six degrees of separation?)
Anyway, we do not know for a fact that the UFC passed money to Xyience to help secure it’s loan. What we discussed on the show was that the accusation had been made. We then talked about what impact that would have if it were true.
Bottom line - we do not have enough facts yet to know whether it is really a problem or not.
February 10th, 2008 at 10:34 pm
my head hurts.
February 11th, 2008 at 7:21 pm
Rich Bergeron hits this story dead on. Not only was the $12 million Zyen loan to Xyience a pass through for the Fertittas and Bill Bullard to cover up the fact that they were defrauding institutions, funds and fixed income investors out of $350 million, but also, the loan was the instrument used by the Fertittas and the Xyience Co-CEOs Kirk Sanford and Adam Frank to defraud the creditors and 380 shareholders of Xyience out of their investment. The Fertittas, through their Zyen financing, paid themselves, the UFC and Sanford and Frank, put themselves in first lien, and now together have bankrupted Xyience so they can pick up Xyience for a song, wiping out all the creditors and shareholders. The Zyen loan was funded on Oct. 4, 2007, foreclosed on by Bill Bullard on Dec. 4, 2007 and now Xyience management, Kirk Sanford and Adam Frank, who received $500,000.00 from the Zyen loan, declared bankruptcy on Jan. 18, 2008. Sanford and Frank weren’t able to make one payment on the Zyen loan after they had just received $12 million from their strategic partner? Yeah, strategic for themselves, alright. Eight months ago when these two Co-CEOs took over management of Xyience the company was valued at over $200 million, now Xyience is bankrupt.
February 12th, 2008 at 5:26 pm
Gale, email me at rich.bergeron@gmail.com if you get a chance. I would definitely like to chat with you more. Sounds like you have the inside track.
May 4th, 2008 at 10:21 pm
i’m pretty bummed about this. i have $ invested with xyience. i guess i’m getting f’d by the fertittas brothers and dana white. i wish someone would help me and my invester friends get our $ back.