« UFC 81: David Heath vs. Anthony Ruiz (Update) | Main | UFC Fight Night (UFN) 12 Weigh-In Results »
UFC Sponsor Xyience Declares Bankruptcy
By CagE | January 22, 2008
It looks like Xyience finally declared bankruptcy, not a surprise after many fighters were claiming that they were not getting paid.
Now this does not mean Xyience is done, they will receive protection from creditors while they can sell off assets, re-organize and obtain more funding.
The Las Vegas manufacturer and distributor of energy drink Xenergy, which sponsors the Ultimate Fighting Championship, has filed for bankruptcy protection amid claims of intimidation and death threats.
Xyience Inc., the energy drink company headquartered at 4572 Hacienda Ave., reported $42.3 million in liabilities and $5.3 million in assets. Xyience sells its energy drink through 230 convenience and grocery stores, mostly in the Southwest.
It also looks like Xyience owes Frank and Lorenzo Fertitta some cash:
Frank and Lorenzo Fertitta, members of the family that founded Station Casinos, own UFC. They also are creditors of Xyience with $12.5 million in unsecured claims and $5.3 million in secured claims, according to the bankruptcy filing.
Xyience gets Death Threats from Creditors:
“Those negotiations, however, were derailed by a campaign of intimidations and threats led by company founder and former CEO Mr. Pike, Terry Cardenas, Ronald Solomon and Rick Klingenberg,” he said.
“Associates of Mr. Pike and Mr. Klingenberg made threats of physical violence against Xyience management and board members and, on at least one occasion, showed up uninvited at the home of one member of management,” Sattar said in bankruptcy court filings.
“Mr. Klingenberg and his brother David Bergstrom stormed into the Xyience office, cornering (Chief Financial Officer) Michael Levy in an office and refusing to allow Mr. Levy to depart until their demands were met,” according to Sattar’s filing.
If their mother wasn’t paid, Klingenberg and Bergstrom said “somebody was going to … get killed,” Sattar said.
They demanded $20,000 “or else they would return the next day with guys who had a 100 percent collection rate,” according to Sattar’s filing.
Related posts:
- UFC Asking 100k Just For The Right To Sponsor A Fighter?
- Video: Matt Hughes Country Breakfast XYIENCE Commercial
- Video: Quinton “Rampage” Jackson Explains Arrest, Claims Police Misconduct
Topics: News, Ultimate Fighting Championship (UFC) | 12 Comments »
January 22nd, 2008 at 12:48 pm
Holy shit is that some gangster shit or what? Well, they have Harley Davidson now so I’m sure there not hurting to bad.
January 22nd, 2008 at 1:44 pm
UFC is a now a big fat joke!!!! Thrown fights, gangster owners and affiliates, pissed off fighters, staged pre-fight hype…. waiting for the IFL next year.
January 22nd, 2008 at 7:17 pm
i dont know of any thrown fights… im not saying tis never happened i was jsut wondering what insightfull unkown knowledge u could share with the rest of the class
January 22nd, 2008 at 8:26 pm
I’ve never heard of anyone throwing a fight, even in the UFC. This sport is still new and the lack of corruptness is one of the things that make it great. I’ve seen alot of pre-fight hype, but you see that everywhere as a means to build the brand so I have no problem with it becuase ultimately it comes down to who has the most skills and not who can talk the most trash.
January 23rd, 2008 at 12:25 am
I follow pretty closely. Please do share. I would like to know which fights you think were thrown.
January 23rd, 2008 at 12:26 am
Perfect picture for the article by the way.
January 23rd, 2008 at 8:09 am
Patrick89, you’re out to lunch when you say, “…the lack of corruptness is one of the things that make it great.”
This story illustrates perfectly how corrupt the sport really is. First off, Randy Couture left the UFC almost immediately after Fertitta Enterprises bought into Xyience. That’s why the picture of him attached to the article is fitting. He was upset over payment, and here are the Fertittas buying out their own sponsors rather than give the fighters something extra. Then, the Fertittas spent almost all the money they invested in paying off past due sponsor payments owed to the UFC by Xyience while also extending the sponsorship contract for three years. Yet Xyience officials say now there wasn’t enough money left to expand the brand and prevent bankruptcy. I call bull. You can read all about it at my site. Just click on my name above.
January 23rd, 2008 at 9:57 am
crap. i thought xyience was one of the best companies for muscle products. i used to take huge amounts ot creatine — NOXcg3 from xyience. i stopped when i started getting chest pain — for fear of an enlarged heart. now that xyience has declared bankruptcy, all these articles are coming out now that their products have lower percentages of compound compared to proven #1 stuff. this is just great make my health.
January 23rd, 2008 at 10:58 am
Yes, I just read your article and you brought some news to my attention that I was unaware of, but when I was refering to “lack of corruptness” I was largley in part talking about the throwing of fights that was previously mentioned. It doesn’t take a stretch of the imagination to believe Dana and the Fertitta’s are capable of such sneaky buisness practices.
January 23rd, 2008 at 7:16 pm
thrown fights? remeber evans and tito come on that shit was fixed gotta wonder about chuck and jardine now i said it before and ill say it again can you say WWE ? and dana mcman or vince mcman or vince white ?
January 24th, 2008 at 1:00 pm
Don’t get me wrong, I think some the decisions are retarded, but I think that’s just becuase the judges are idiots and only qualified to judge boxing events.
May 25th, 2009 at 10:26 pm
shit im scared,i wanted to get some xyience cause i started lifting again.fuck that im sticking with amp. as for the mafia stuff just watch ufc and try not to be to vocal on the internet,also watch what you invest in?