9 Jun 2014 13:10:50 PM
(Diaz hanging with the Tapout crew, before it all fell apart. Photo via Dan Diaz/OC Weekly)
Tapout is one of the most prominent apparel brands in MMA, worn mainly by the sport’s in-crowd consisting of loyal, uber-cool and educated fans, many of whom who have either trained or competed in martial arts themselves.
In 2012, news broke of a major scandal involving the Tapout brand and Hitman Gear founder Dan Diaz. Diaz had sold Hitman to Tapout in 2007 in exchange for 1.25 million shares in the new company, a five-year employment contract and the promise of radical expansion of the Hitman brand.
What Diaz ended up getting was a raw deal, with Hitman being sold for zero dollars when Tapout was sold to Authentic Brands Group (ABG) in September 2010, thus making his shares worthless. His employment contract was also terminated with the sale to ABG, leaving him high and dry.
Rather than settling for chump change, Diaz opted to take his case to the courts. He’s not just suing for damages—Diaz wants the moral victory of exposing the corruption that robbed him of the personal pride he put into his company.
The trial between Dan Diaz and Tapout/Authentic Brands Group has been set for July 7 of this year. Beyond the damages Diaz is seeking, there are allegations that many MMA fighters who licensed their names for Tapout signature shirts like Chuck Liddell, Kenny Florian and Keith Jardine, have been defrauded of royalties.Read More DIGG THIS