CSAC voids contract between UFC champ Ronda Rousey and manager

The California State Athletic Commission on Thursday voided a management agreement between UFC women’s bantamweight champion Ronda Rousey and her now-former representative, arguing it was unenforceable because commission standards weren’t followed.

Rousey, who is expected to defend her title this summer, is now free to seek other fight managers.

CSAC Executive Director Andy Foster, acting as the state’s arbitrator in the dispute, found that Rousey, 27, couldn’t be held to the fight management portion of her contract because the commission hadn’t certified her relationship with Fight Tribe Management’s Darin Harvey.

“The agreement is hereby found to be invalid and unenforceable as it relates to Rousey’s professional fighting services and Harvey’s professional fighting management services, only,” reads the arbitration ruling, which was obtained Friday by MMAjunkie. “The commission makes no findings as to the other parts of the agreement that are not directly relating to MMA fighting and defers these matters to the Calfornia Superior Court.”

Harvey, who filed a request for arbitration on March 7, could not be reached for comment. Rousey’s lawyer in the dispute, Steve Bash, wrote via text, “We are pleased with the decision and agree that it is consistent with longstanding law governing relationships between the parties.”

In its decision, the CSAC leaned heavily on a rule that requires managers and fighters to use the commission’s forms to make official their business relationship, and contracts between the parties must receive written approval.

During an arbitration meeting held this past Thursday in Los Angeles, which was attended by Foster, Rousey, Harvey, and their respective legal reps, Harvey argued he didn’t need to certify he was Rousey’s manager because he was charging her less than the industry standard for such a service. In the agreement, a three-year contract with two one-year extension options, he took 10 percent of her earnings as opposed to 15 percent.

Harvey argued that after Rousey signed with the UFC, the promotion took over the bulk of his managerial duties. Rousey, however, testified that Harvey continued to work with UFC matchmakers and promotion officials, pay for expenses related to training camps, negotiate sponsors, and represent himself as her manager to the media.

The commission sided with Rousey, citing a January 2014 expense payment as evidence Harvey was still acting as a manager.

The agreement between Rousey and Harvey was drafted in May 2012, but it wasn’t finalized until January 2013. Harvey said the agreement encompassed not only fighting, but acting, modeling and other commercial activities, according to the ruling.

Harvey submitted an exhibit showing that from January 2010 to January 2014, he received $25,608 from Rousey’s fight earnings, $23,180 from pay-per-view proceeds, and $20,830 from sponsorships. In turn, he spent $170,376 on the fighter’s training camps, living expenses and sparring partners, resulting in a loss of $85,818.

The manager argued he is entitled to the “fair market value” of his services from May 2012, when the agreement was first drafted, to the present. The commission, however, said that awarding Harvey any monies “would be inconsistent with the provisions of California law requiring proper written fighter-manager contracts.

“Harvey violated the statutory scheme designed for the protection of athletes, like Rousey, and therefore, Harvey will receive no help from this commission in enforcing this illegal fighter-manager contract.”