Affliction calls M-1 a sham in counter-suit

Affliction calls M-1 a sham in counter-suit

May 31, 2010 – 6:49 pm by fightlinker

M-1 has been working it’s ass off for the last year trying to prove that it’s a valuable co-promotional partner that brings all sorts of positive things to the table. That claim is going to take a serious hit as Affliction has just sued them this past Friday, basically calling bullshit on the idea that M-1 did anything real other than shelter Fedor’s money from taxes.

According to Affliction, the California-based promotion inked a “Fight Agreement” that tendered $300,000 to Emelianenko per bout he participated in, while Affliction was directed to pay the remaining $1.2 million of Emelianenko’s $1.5 million asking purse per bout directly to M-1 Global under the auspice of a “Consultation Agreement.”
“The reason for the two agreements, Affliction was told, was for personal tax implications,” reads the countersuit.
Affliction claims no consultation was ever agreed upon or given by the M-1 Global group for the two events.
“Because the consulting agreement was a sham contract designed to avoid tax obligations, M-1 had no obligations to perform pursuant to the consulting agreement and therefore rendered no performance under the consulting agreement,” alleges Affliction’s filings.
Affliction is asking the court to deem the consulting agreement unlawful and that M-1 Global refund the $2.4 million it initially collected for the two events, plus a 10 percent interest rate per year along with attorney’s fees.

Keep in mind though that this is part of Affliction’s counter-suit against M-1, who are trying to keep Affliction on the hook for that third Fedor fight that never happened. Affliction is liable to make things look as negative as possible, even if they just paid M-1 the money and told them to stay out of the way. For a less biased opinion on the situation, I’d say go ask Scott Coker what he thinks of M-1 as a promotional partner. But he’d just give you a nervous smile and talk about how great everything is even after they just fucked him (and themselves) over hardcore by skipping April’s CBS show.

via mmacrypt.com

Posted via web from MMACrypt.com