Nate Diaz claims boxing promoter Solomon Engel and Fanmio stiffed him out of $9 million for boxing Jorge Masvidal on July 6th. In a lawsuit filed in federal court in Florida, Diaz’s attorneys, Ronnie Bitman and Jeremiah Reynolds, wrote, “There is nothing lower or more despicable in the world of boxing than a boxing promoter who allows a fighter to put their health and safety on the line in boxing event so that the promoter has the chance to make tremendous profits, only to later renege on paying the boxer following the event.” Diaz alleges he was guaranteed $10 million for the fight but only received a $1 million advance and nothing since the fight took place. He has now sued both Fanmio and Engel personally for fraud, breach of contract and deceptive and unfair trade practices. The lawsuit seeks a total of $20 million, which includes a claim for punitive damages.
Wthin a few hours after the lawsuit was made public, Fanmio issued the following statement: “Nate Diaz has filed a frivolous lawsuit against Fanmio which claims that fraud and breach of contract were committed by Fanmio, yet neither has taken place. In fact, Diaz has already been paid seven figures in connection with the fight. I look forward to resolving this dispute through the appropriate process and am confident that justice will prevail. Making salacious and defamatory statements to the media in order to harm my family and I has only strengthened my resolve to ensure that the truth will triumph.”
Here are the key allegations in the lawsuit, lightly edited to remove repetition and some legal terms. Remember, these are allegations that still must be proven by Diaz:
"This case involves an outright fraud committed by Fanmio, Inc. and its president and owner, Solmon Engel, upon famed mixed martial artist and boxer, Nathan Diaz. Fanmio describes itself as an entertainment company that provides online access to entertainment events, films, and celebrity experiences. In 2023, Fanmio and Engel approached Diaz and his representatives, about a boxing match between Diaz and retired MMA fighter, Jorge Masvidal. Diaz and his representatives were skeptical that Fanmio and Engel had the financial resources to fund the payments, but they were assured repeatedly that Fanmio and Engel had the financial resources to pay Diaz and that any payments owed to Diaz for participating in the boxing event would be fully guaranteed.
"Engel and Fanmio repeatedly promised and contractually guaranteed in writing they would pay the sum of $10 million to Diaz for helping to promote the fight and boxing Masvidal, with $1 million paid upfront and $9 million paid after the event. The boxing event between Diaz and Masvidal took place on July 6, 2024 at the Honda Center in Anaheim, California. From all appearances, the event was a smashing success. The entire 18,000+ seat Honda Center sold-out, and the fight between Masvidal and Diaz was action packed, going the ten-round distance, with Diaz ultimately prevailing in a majority decision over Masvidal.
"[According to Diaz], Fanmio and Engel are now reneging on their written and oral promises and guarantees to pay $9 million owing to Diaz because they claim they are going to lose money on the event. In a flurry of desperate calls to Diaz’s representatives following the event, Engel despondently groveled that he was going to lose more money than he had anticipated on the event if he paid Diaz what he had promised and that his wife might divorce him because of the financial losses. Engel went so far as to threaten he might have to declare bankruptcy to avoid paying Diaz what he owed.
"Engel knew that Diaz and his representatives were concerned about this exact situation of Engel reneging on payment if the event was not a financial success. In the months and weeks leading up to the event, Fanmio, Engel, and their representatives intentionally lied to Diaz’s representatives about having set aside the money to make the payments and the payments being guaranteed, going so far as to have their lawyer inform Diaz’s representatives in writing that the money to pay Diaz was being held in an independent collection account. Unfortunately, Diaz has been given no choice but to now sue Fanmio and Engel to address their blatant breach of contract and fraud, and recover the money Diaz is indisputably owed.
"In May 2024, Fanmio and Engel assured Diaz’s representatives both orally and in writing that Diaz’s payments were guaranteed and not dependent on the event’s financial success. In addition, Fanmio, Engel and their representatives expressly represented that the money to pay Diaz had already been deposited in an independent third party collection account managed by [a company named] Salford Corporate Services Inc. On May 2nd, Engel told Diaz’s representatives that he had already deposited all of the funds in the collection account held by his lawyer, Yosef Shwedel, that were necessary to pay for the event and stated the funds are with Shwedel already. Engel said the guaranteed amounts would be paid out first, as he had done in past fights, and by no later than five business days following the event.
"On May 12th, Shwedel, who is also an officer and owner of Salford, sent an email to Diaz’s attorney, Sam Awad, copying Engel and Rosenfield, stating that “regarding your inquiries relating to funds, please be informed that as a matter of course our firm does not furnish letters concerning our client's funds to external parties unless they are required under agreements governing the relationship between our client and such third party. However, our firm can confirm that either directly or through Salford Corporate Services Inc, it has received from and for Fanmio amounts in excess of $8,500,000 for the Fanmio bouts.”
"Diaz would have never participated in the event if his representatives had not received the foregoing assurances from Fanmio and Engel via their attorney. On May 13th, Rosenfield and Engel spoke about concerns about Fanmio and Engel paying Diaz. Engel told Rosenfield that “You have nothing to worry about. Nate is getting paid.” Rosenfield replied, stating “we just want to make sure you are not counting on event proceeds as the only way to get it since I am projecting us to come in low.” Engel responded, stating “don’t worry. Nate is going to be fine. I have said that to you that from the start.”
"In the weeks leading up to the event, Diaz’s representatives were concerned about Fanmio and Engel’s efforts to generate pay-per-view sales, including failing to contract with the key players in the pay-per-view market. On June 21st, Rosenfield pressed Engel on what his plan was if the PPV underperformed going so far as to say “you do realize no matter what, you owe Nate $9 million on the Friday after the fight.” Engel again assured Rosenfield that Fanmio and Engel had no concerns about the financial performance of the event. Engel told Rosenfield that “Don’t worry. I pay everybody. Nate will be paid. I don’t have the contract in front of me, but yes.” Engel told Rosenfield during the call that he had a net worth of $80 million in an apparent effort to further comfort Rosenfield that Diaz would be fully paid.
"On May 14th, Fanmio sent a letter complaining that Diaz had failed to perform certain promotional obligations in connection with the event. On June 14th, Diaz’s lawyer, Jeremiah Reynolds, responded, denying that Diaz had failed to perform any promotional obligations. On June 23rd, Rosenfield again demanded assurances from Engel that Diaz would be fully paid if he complied with the promotional obligations during fight week. Engel said that Rosenfield was being ridiculous and “I am not going to stiff Nate Diaz. But Nate has to understand how vital fight week promotion is.” Rosenfield assured Engel that throughout Diaz’s career he has always been fully compliant with media activities during fight week and this would be no different.
"On June 27th, Shwedel again assured Reynolds that Fanmio intended to fully pay Diaz and had no intention of deducting any amounts from payments guaranteed to Diaz. Following the call, Reynolds sent an email stating, “thanks very much for the call today. I understand that the intention from Fanmio in sending your letter is to document past alleged failures to promote but there is no intention of making deductions to my client’s payments as a result of the allegations in your letter. My client intends to perform all agreed promotional obligations but it is critical that Fanmio be clear about its expectations for fight week and the parties agree on a promotional schedule. I am hopeful everyone can work cooperatively towards a very successful event.”
"Diaz participated in an unprecedented amount of media promotion for the fight, including six press conferences, four times the amount of social media posts he has ever done for any previous fight, plus he agreed to media availability, podcast interviews, and granted permission to Fanmio to utilize his YouTube channel as a distribution platform for fight-related promotional content. In the week leading up to the event, Diaz did everything requested of him to promote the success of the event, including doing podcast interviews, participating in press conferences, and posting on social media. Diaz did everything and more to attempt to make the fight a success. The value of Diaz’s services for marketing and participating in the event well exceeds $20 million.
"Following the event, Diaz looked forward to being paid what he had rightly earned and what had been repeatedly promised and guaranteed. Diaz was provided a check by a Eric Bottjer (a matchmaker hired by Fanmio) for Diaz’s disclosed purse of $500,000, which had been disclosed to the California State Athletic Commission. However, later than night, Bottjer asked for Diaz to return the check, stating that Fanmio preferred to just pay Diaz the entire guaranteed sum of $9 million by wire at one time. Diaz in good faith complied expecting that Fanmio and Engel would make good on their promises guaranteeing his payment of $9 million, but remarkably, Fanmio and Engel have even reneged on paying Diaz the disclosed purse that was listed on a contract provided by the California State Athletic Commission. Diaz is informed and believes that Fanmio’s and Engel’s request to return the $500,000 disclosed purse was part of the fraud committed by Engel and Fanmio who had already decided that very night to renege on the payments owed to Diaz.
"Instead, Engel and Fanmio have now told Diaz’s representatives that they are not satisfied with the financial performance of the event on pay-per-view and are unwilling to pay Diaz the full $9 million he is owed. Fanmio and Engel have even gone so far as to despicably threaten to declare bankruptcy to avoid payment to Diaz. Diaz has been given no choice but to sue for what he is owed."
