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WWE News: Energy drink company files $15 million dollar lawsuit against Big Show and WWE for breach of contract

Jun 16, 2009 - 3:49:30 PM
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By James Caldwell, Torch assistant editor

Energy drink company SoBe filed a multi-million dollar lawsuit against Big Show and WWE today in Miami-Dade County, Florida claiming Big Show and WWE owes them $15.0 million for services not performed by Show and WWE's interference in a contract between SoBe and Show.

In the lawsuit, SoBe claims they entered into a contract agreement with Big Show on March 1, 2007 to sponsor his attempt to become a professional boxer. The agreement called for SoBe to pay Show $84,000 per month and loan $1.0 million to Show to buy a house in Florida.

The first payment from SoBe was made in April 2007, which Show and his wife, Bess, reportedly used to pay off existing debt, including $405,068 in unpaid taxes that SoBe claims they did not disclose at the time of the agreement.

SoBe also claims Big Show and his wife failed to execute a second mortgage on the property in SoBe's name, which represented a breach of the contract. SoBe claims Show used the money advanced by SoBe to pay off personal expenses instead of using the advanced money to begin training for pro boxing.

The contract called for five years of the $84k monthly payments to Show for his pro boxing training with SoBe sponsoring his potential fights. Show, who was on hiatus from WWE and said he was committed to boxing, decided boxing wasn't for him.

SoBe claims they paid out $2.0 million to Show until stopping payments when he breached contract and returned to WWE in February 2008 to set up the angle with Floyd Mayweather for WrestleMania 24.

According to court documents, WWE re-signed Show in January 2008 - two months after he decided not to pursue pro boxing, effectively breaching his contract with SoBe. SoBe claims WWE ignored the existence of SoBe's contract with Big Show, thus contributing to the breach of contract, leading to them being named a defendant in SoBe's lawsuit.

SoBe says they made WWE aware of Show's contractual obligations to SoBe on March 28, 2008, right at the time of WrestleMania 24.

"WWE, showing a complete disregard for SoBe's contractual rights, moved forward with the Big Show/Mayweather headline event which proved to be a success for the WWE," said SoBe in the lawsuit.

SoBe is seeking repayment of the $2.0 million paid to Show plus damages from loss profit based on WWE using Show's likeness to help generate millions of dollars in PPV sales from WrestleMania 24 until the Extreme Rules PPV earlier this month.

SoBe concludes: "Wight materially breached the contract by (i) failing to perform the promised professional services for SoBe; (ii) failing to acquire a second mortgage in favor of SoBe; and (c) performing professional services for the WWE, which professional services he was obligated to perform exclusively for SoBe."

SoBe adds that WWE knew full well of Show's contractual obligation to SoBe through March 2012, yet continued to market Show for the past year on WWE PPVs.

"Indeed, the WWE could have contracted Wight through SoBe. Instead, it tortiously interfered with the contractual relationship by hiring and utilizing Wight's professional services with a knowing disregard for SoBe's contractual rights."

SoBe is seeking a trial by jury in Florida court, but a date has not been announced yet. The two sides could settle out of court beforehand.

Link: Read the .pdf of the lawsuit at courthousenews.com.


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