UFC deal way more lucrative for Alvarez

[johnsq316]

I feel this is unfair to the person. Especially if Alverez got fired by Bellator. Would you happen to know why industries have non-compete clauses? Are they only valid in only certain situations? Say I was Alverez's lawyer would I be able to put a contingent on the non-compete?

Sometimes the terms are different, like it's a 90 day non-compete if you get fired but 180 days if you leave voluntarily, but usually it doesn't make any difference.

It's to protect the assets that you are working on in sensitive industries. In Seattle's Jet Blue example, that CEO knew Jet Blue's business strategy for the immediate and long term, so it makes sense that they would want to be protected from him getting fired one day, hired as a "consultant" by Southwest the next week and targeting all the weaknesses or critical areas in their business plan.

In IT it's exceptionally important - a key player on the Call of Duty game could leave and go to EA and spill the beans on all the stuff they're working on for the next Call of Duty game so EA could put something better in Medal of Honor.

It is a negotiable point, usually the longer the non-compete the larger the severance package, or you can negotiate to have the non-compete limited or shortened if you leave involuntarily.

 

[SeattleFightFan]

I feel this is unfair to the person. Especially if Alverez got fired by Bellator. Would you happen to know why industries have non-compete clauses? Are they only valid in only certain situations? Say I was Alverez's lawyer would I be able to put a contingent on the non-compete?

well, in the case of airlines and tech, it's usually about trade secrets. but arguing that it's appropriate for ONLY that line of reasoning, to try to LIMIT non-complete's to trade secrets and therefore they wouldn't apply to MMA, would be, IMO, a losing legal approach. non-complete's are totally legit here.

no, it will come down to the definition of "match". UFC is offering the opportunity for a shitload of $ on PPV's which Bellator can say on paper they will match, but nonetheless cannot match in the real world. legal definition versus real definition. courts generally don't just follow "letter of the law" in situations like this; they look at the real life implications.

 

[skylolow]

it is very interesting. i've been curious about this for months, ever since i heard about the "matching" criteria. lockerroom bonuses, FOTN/SOTN, sponsorship earning potential and video game "likeness" earning potential are 4 other areas that i was curious about other than PPV $.

i expect the 3 parties to come to some sort of agreement before it actually goes to court. and that he fights in the UFC this summer.

about the world of contract law....i have no idea, but i have to assume that something like this has happened in some other arena (not MMA). it must have. i'm guessing all the lawyers are looking for similar court cases.

I agree....I'm not so sure this is going to go all the way too court.

Eddie has basically outgrown Bellator just like Hector. There business model isn't set up to give great fights to top 10 fighters fight after fight. So what is the point of paying a fighter a boat load of money to have him fight more times then not against subpar fighters compared to his level. Unless Bellator is going to start going after named value fighters from now on and actually become a true MMA org that MMA stars can look too then its just flushing money down the toliet for the most part to pay a guy like Eddie.

 

[zephid]

right. so instead they offered a potential PPV cut, which Bellator can (or cannot, depending on how you view it in strictly legal terms) "match". and now the courts will decide.

It would also depend on how big cut he was offered.

 

[johnsq316]

well, in the case of airlines and tech, it's usually about trade secrets. but arguing that it's appropriate for ONLY that line of reasoning, and therefore wouldn't apply to MMA, would be, IMO, a losing legal approach. non-complete's are totally legit here.

no, it will come down to the definition of "match". UFC is offering the opportunity for a shitload of $ on PPV's which Bellator can say on paper they will match, but nonetheless cannot match in the real world. legal definition versus real definition. courts generally don't just follow "letter of the law" in situations like this; they look at the real life implications.

The better comparison to MMA (as is frequently the case) is the pro-wrestling world. A non-compete or restrictive movement clause (like Zuffa's champion's clause) is to prevent (hypothetically) Jon Jones from showing up at a Bellator press conference or event as the current UFC champion (say the day after his contract expired) and talking about how the competition in the UFC was garbage and he wanted to fight in Bellator.

As a Canadian you should be at least passingly familiar with the most famous execution of this clause: The Bret Hart screw job.

 

[Knife Party**]

id rather have michael chandler hes my friend on facebook so im biased, yey

 

[RichyN]

Sometimes the terms are different, like it's a 90 day non-compete if you get fired but 180 days if you leave voluntarily, but usually it doesn't make any difference.

It's to protect the assets that you are working on in sensitive industries. In Seattle's Jet Blue example, that CEO knew Jet Blue's business strategy for the immediate and long term, so it makes sense that they would want to be protected from him getting fired one day, hired as a "consultant" by Southwest the next week and targeting all the weaknesses or critical areas in their business plan.

In IT it's exceptionally important - a key player on the Call of Duty game could leave and go to EA and spill the beans on all the stuff they're working on for the next Call of Duty game so EA could put something better in Medal of Honor.

It is a negotiable point, usually the longer the non-compete the larger the severance package, or you can negotiate to have the non-compete limited or shortened if you leave involuntarily.

Great makes sense. Alverez = Bellator's asset and they do not want to lose there asset that they have been building all these years.