Fertittas funnel emergency loan to Xyience; Criminal Investigation Forthcoming?

[smoogy]

Wow, this is some dirty shit.

Fertitta's to the Rescue: Xyience Recieves Emergency Loan

The Las Vegas Review-Journal reported today that Zyen, a company controlled by the Fertitta family, has been granted permission by the judge handling Xyience's bankruptcy proceeding to issue an emergency $1 million loan to the embattled beverage maker. According to filings with the Nevada Secretary of State's office, Zyen was formed in September of last year. The company already holds $12.5 million in unsecured claims and $5.3 million in secured claims against Xyience.

MMAPayout.com is following this story closely, however, requests for comment from Xyience and the Nevada State Attorney General's Office have gone unanswered. Multuple sources within the industry have told MMAPayout.com that they believe a criminal investigation into the company may be forthcoming.

Payout: The Business of MMA: Fertitta's to the Rescue: Xyience Recieves Emergency Loan
ReviewJournal.com - Business - Troubled drink maker granted $1 million loan


Zach Arnold asks the obvious question:

A question that I want to see answered: If Xyience paid UFC $15 million USD/year for being the company’s largest corporate sponsor, why was UFC so intimately involved in helping the company get financing and having fighters featured in prominent sponsorship deals? Let me phrase this differently… why would UFC, the largest company in their respective sport, take money from a sponsor, then prop up that ailing sponsor financially, and then have their top fighters sign sponsorship deals with that company? There are many legitimate questions that should be asked here and need to be asked. Will others ask the tough questions?

http://www.fightopinion.com/2008/01/...-11-protection



I'm not going to jump to any conclusions given this is an ongoing story, but man... when you boil it down it simple terms, things don't seem to add up. Why would the Fertittas financially buttress such a mess of a company?

[baba]

I'm fairly certain I once heard that the head of xyience was related to the Fertitas. The answer could be that simple.

[foundstarr]

My guess, and this is only a guess period...

Zuffa got involved with Xyience, then later on down the road alot of troubling things came out of that company. Now they are doing their best to present them as a still legit company. So by keeping them solvent they ensure the fighters they sponsor get payed which helps the UFc out. Also by funneling money to them they can try to keep the courts off their back, also keeping Zuffa out of the news story explosion that will come if foul play or the steroids accusations come to light.

Once again its a guess, but it makes sense to me.

[Krazikarl]

There is no actual evidence that the Brothers F did anything wrong. An online blog hearing from somebody that something might happen doesnt exactly excite me.

Furthermore, Zach Arnold is a bit off the mark. The Brothers F ARE NOT the same thing as the UFC. The UFC is a tiny amount of their net worth (they are big time Casino people). So equating the two is misleading.

The most likely scenario here is that the Brothers F are trying to make money by having a friendly supplement company around where they know the owner well. If Xyience was successful, it would likely make them a lot of money in the future. This really doesnt have anything to do with the UFC, its just a moneymaking scheme by the Brothers F it looks like, and there isnt anything wrong with that since they are businessmen.

[NearDark]

Zuffa controls what sponsors UFC fighters may be endorsed by. It makes sense for them to expand that by being involved in a company that is a major sponsor of their fighters. It is another means of control for Zuffa over fighters. Control their sponsors, you control a big part of their money. A lot of fighters are upset with Xyience because Xyience was stiffing them and not paying them the money owed.

There is obviously something wrong with Xyience, there are a ton of news stories about it around:


Xyience Inc. v. Bergeron | Citizen Media Law Project

Xyience Files for Bankruptcy - MMA on Tap

XYIENCE SERIES

[foundstarr]

Originally Posted by Krazikarl

There is no actual evidence that the Brothers F did anything wrong. An online blog hearing from somebody that something might happen doesnt exactly excite me.

Furthermore, Zach Arnold is a bit off the mark. The Brothers F ARE NOT the same thing as the UFC. The UFC is a tiny amount of their net worth (they are big time Casino people). So equating the two is misleading.

The most likely scenario here is that the Brothers F are trying to make money by having a friendly supplement company around where they know the owner well. If Xyience was successful, it would likely make them a lot of money in the future. This really doesnt have anything to do with the UFC, its just a moneymaking scheme by the Brothers F it looks like, and there isnt anything wrong with that since they are businessmen.

Yeah, the Ferttitas own the station casinos, we have two here in Colorado.
They make billions off of those, I'd imagine UFC is probably a passion project more then anything. Casinos pretty much run themselves, they have a couple hundred of my dollars