Nick Diaz on Thursday sent his official Notice of Breach of Contract to EliteXC. The letter is an attempt that many fighters are making to free themselves from the shackles of EliteXC’s sinking ship. The promotion’s parent company, ProElite, Inc., is expected to file bankruptcy any day now.
If the breach of contract doesn’t go through, it is possible that the fighters under contract with EliteXC could get mired in the legal process when the bankruptcy court tries to find relief for ProElite’s creditors.
Below is the letter that Diaz sent to EliteXC, as it was posted on his manager Cesar Gracie’s website:
October 30, 2008
To EliteXC Live:
12100 Wilshire Blvd., Suite 8000
Los Angeles, CA 90025
Attn: Jeremy Lappen
Re: Notice of Breach – Unarmed Combatant Promotional Agreement between Nick Diaz and EliteXC Live, Inc.
Pursuant to Article 43 of the Unarmed Combatant Promotional Agreement between Nick Diaz and EliteXC Live, Inc. (“Agreement”), Nick Diaz hereby provides written notice of material breach of the Agreement. It has come to the attention of Mr. Diaz that EliteXC Live Inc. has declared the intent to file for bankruptcy and is no longer able to fulfill its obligations under the contract and has breached its representations and warranties pursuant to Article 47 of the Agreement.
Pursuant to Article 43 of the Agreement, EliteXC Live Inc. has thirty (30) days to cure such material breach by posting a bond or other form of escrow in such an amount as set forth in the Agreement that must be payable to Mr. Diaz upon completion of each contemplated Bout set forth in the Agreement and any extensions thereof, and, specifically to evidence EliteXC Live Inc.’s ability to fulfill its obligations under Article 47. If EliteXC Live Inc. fails to cure such material breach in the manner set forth above within thirty (30) days of receipt this written notice, then in Accordance with Article 43, the Agreement and any extensions thereof will be terminated.