Austin McBroom is officially being sued for $100 million after admitting that the fighters
from the YouTubers vs. TikTokers event he organized still haven’t gotten paid — let’s
get into it
This news comes following two smaller suits against the ACE Family’s patriarch Austin
McBroom’s company Social Gloves Entertainment and the alleged foreclosure of his family’s
home.
When it rains it pours and Austin apparently could really use an umbrella right now as
he’s being slapped with a new lawsuit that could potentially have him file for bankruptcy.
During a recent interview with TMZ, Austin bragged about what he alleges to be the massive
success of the pay-per-view event YouTubers vs. TikTokers that he put together with Social
Gloves Entertainment.
He said, “Everybody at the event knows that there was probably 20,000 people there.
Just at the gate alone, we probably made $3-4 million.
Just that.
We’re not talking about pay-per-view numbers, we’re not talking about brand deals.
We’re just talking about -- at the event.”
And after playing down rumors that the fighters hadn’t gotten paid even weeks after their
boxing matches, Austin finally admitted that even he himself hasn’t seen any money yet,
but he shifted the blame to another company saying, quote: “Yes, fighters have not got
paid yet, including myself but that is because LiveXLive.”
Austin further explained that his enterprise Social Gloves is indeed the promotion company
that put together the event but that LiveXLive was their live stream partner in charge of
collecting fans’ payments and that they’re the ones allegedly holding on to all the funds.
According to Austin, he’s already taken legal action to get everyone paid, he said:
“They have not paid Social Gloves one penny and that’s why Social Gloves is suing LiveXLive.”
Though it’s worth noting that so far no proof has surfaced showing that Austin filed
a lawsuit against them.
And even before the dust has settled on this matter, Austin is already promoting his next
event as he claims that the payment scandal will be sorted out before Social Gloves 2
which he believes should be happening in the next three to four months.
In fact, he even took the opportunity to call out fellow YouTuber KSI to step into the ring
with him as well as trying to egg on Bryce Hall and Logan Paul to join in on the action.
And well, guess what, LiveXLive is formally suing Austin and his company for a whopping
100 million dollars!
In a court document that recently emerged, the streaming company holds that Austin refused
to promote the event insisting that his popularity alone would be enough to get people to pay
$49.99 for the series of fights.
And speaking of PayPerViews, LiveXLive disclosed that they ultimately sold 136,000 online views
and not the 500,000 they were expecting.
But the main reason why LiveXLive is suing Austin, according to the document, is because
he has been badmouthing the company after the event and they allege it resulted in a
20% loss in their stock price, quote, "causing nearly $100 million in damages.”
Some may recall just last month when Social Gloves’ official Twitter account addressed
the unpaid wages, claiming that they’ve hired an accounting firm and a forensic auditor
to ensure that all amounts are “properly accounted for.”
The company urged any influencer involved to continue sending in their receipts, however,
with the latest lawsuit against Social Gloves, those payouts may take a little longer than
expected…
This is the most recent alleged lawsuit against Austin and his family, following two smaller
suits against McBroom's company, Ace Hat Collection and Catherine McBroom's legal battle with
former business partners.
The ACE Family is purportedly being sued for $65,000 by their former landlord due to breach
of contract and failing to pay rent, as well as by a construction equipment rental company.
On top of all that, not too long ago rumors began to circulate that The ACE Family's seven
million dollar home in Encino, California was in the midst of foreclosure.
The home eviction rumors began to unleash due to the house being listed on home-buying
sites stating the lot was "pre-foreclosure."
Screenshots of the alleged court documents also showed that the location was being foreclosed
due to backed mortgage payments and tax payments.
So things definitely seem to be getting complicated for The ACE Family and we’ll be sure to
keep you informed about any new developments…
Now go ahead and click right over here for more on The ACE Family home eviction rumors:
Then hop to the comments and let me know all your thoughts on this massive new lawsuit
against The Ace Family
As always, I’m your host Renee Ariel, you can follow me on socials @ReneeAriel and
I’ll see ya next time!