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Revealed: Reynolds’ Quik Contract!

Rory Parker

by Rory Parker

Dane Reynolds will hate me for this. But I'm a fan and I love this shit…

I’ve read so much speculation regarding top tier contracts over the years. How much are they making? Hard to say. Always kept secret. In the case of Dane, his contract made that mandatory:

The athlete will keep secret and confidential all details of this agreement and all knowledge of information relating to Quiksilver, its Affiliates and Licensees, other than information which at the time of receipt or subsequently has passed into the public domain other than by fault of the athlete.

But Quik’s bankrupt, seeking to divest themselves of Reynolds’s claim against them, and so submitted Dane’s contract as evidence. Which makes it a matter of public record and that means we all get to feast our eyes on the details.

The contract prior to 2006 is absent, but the rest is all there. 2006 to 2011, as well as the amendments made when he re-upped until 2017.

I can only assume Dane is going to hate me for this. Kinda sucks, put myself on his radar, make him not like me. ‘Cuz just like every surfer, I adore Mr Reynolds. Super uncomfortable since he’s the surfer we all want to be. Dora without the thievery.

But I’m first and foremost a fan and I love this shit.  So here we go…

Dane Reynolds contract

Additionally, Dane’s contract entitled him to a $100,000 signing bonus, as well as 10,000 Quiksilver stock options, vested over a three-year period.

Nice chunk of change going on here. Pretty lucrative incentives (with the exception of that stock, obviously.) Unfortunately for Dane’s wallet, things didn’t really pan out. He decided to quit the tour in 2011, posted a letter on Marine Layer explaining why. It’s no longer there, but our dear friends at The Inertia saved it from extinction. 

and so here i am. 26. officially off tour. wasted talent. blown potential. refusing responsibility. ‘all he wants to do is sit at home and play with crayons and ride fucked up boards.’ but wait! but wait! that’s not true! don’t listen to chris mauro. he’s a dinosaur. doesn’t get it. this may be the end as a wct contender, but its also a new beginning. i feel like a baseball. the skins been carefully pried off and there’s a thread and i’m gonna pull it and i’m gonna end up a pile of string on the floor. but then maybe i’ll be knit into something more useful, like a sweater. or perhaps something beautiful, like a hand embroidered masterpiece of a deer and two fawn drinking cold clear water out of a creek. but you never know. i hope to achieve some sort of balance. yeah, i do like riding fucked up boards, but i also like doing airs and taking some aggression out on a cutback. and competings rad if you can stay inspired, but rankings and trophy’s mean very little to me. i wanna learn, i wanna make things, things of purpose, be productive. travel. new experiences. new sensations. and most importantly explore the outer limits of performance surfing. i’ll still compete. but its not going to consume me. 

Of course, even off tour, perhaps especially so, Dane was still a huge draw. His 2011 renegotiation earned him a substantial pay increase. Amendments to the contract included:

– A monthy salary of $291,666.67.

– A 3% royalty on net sales of products that “bear the name or likeness of Athlete, or utilize the designs or artwork created and owned solely by Athlete (the ‘Signature Products’).”

– “The term ‘Team Managers’ shall be deleted from the agreement and be replaced in all instances with ‘Quiksilver Liasons.’” (I’m sure there’s a story behind that one.)

– “Athlete may also wear and use ‘Summer Teeth’ brand clothing and accessories as reasonably approved by sponsor, but only for so long as Sponsor or one of its Affiliates is the exclusive licensee and manufacturer of the ‘Summer Teeth” brand.”

– Marine Layer Productions became the sole producer of all of Reynolds’s video shoots, so long as “all fees and expenses are pre-approved in writing by Sponsor in its reasonable discretion and are comparable to the fees and expenses that would be charged by similarly situated production companies.”

-Reimbursement for expenses during travel to any promotional activity or competition. The 2006-2011 contract left Dane to pay.

– “For so long as the Sponsor has the ‘Young Guns House’ in Pupukea, HI, Athlete may stay in the house during the months of November and December of each year during the Term, provided Athlete gives Sponsor reasonable notice of his intent to stay at the house.”

– Reimbursement of up to $72,000 per year to pay for the lease and insurance costs of a “house, apartment, warehouse space or other property.”

-Custom fitted black wetsuits made from Japanese rubber

There’s more to it, including Dane’s responsibilities regarding promotional activity, behavior, etc. But it’s all kind of boring legalese.

For those of you who are interested, here is Quik’s response to the claim in full.

Quiksilver response to claim

 

Revealed: Reynolds vs Quik! (Part one!)

Rory Parker

by Rory Parker

BeachGrit actually does its homework and finds a treasure trove of court documents!

Is Dane Reynolds suing Quiksilver? The easy answer is no, he is not. But in law there are no easy answers. The reality is a bit more complicated.

On September 21st 2015 Quik’s Miky Picon sent an email to Blair Marlin, Dane’s manager, spelling out their desire to renegotiate Dane’s contract, as well as extend it until 2020. It had previously been set to expire in 2017. (The potential new contract was not included in court docs, though it’s safe to assume it involved a pay cut, which, coupled with an extension, make it no surprise Dane decided to walk.)

Hi Blair,

I hope you are well.

I try to move as quick as possible for the benefits of everyone here..

We put in place that offer for Dane for the next 5 years. As I already mention, we really want to give our best offer straight a head and not trying to play any games, in the respect of Dane we put one strong offer and you guys give us an answer..

You can shop around and see what you guys will decide. This offer is still strong for the market, and after all those years in the team i hope he will take the right decision to stay with us.. We will let the totally Freedom to Dane to be Dane.. Shoot, surf, all the things he like to do.. We will support any project for the coming 5 years, we will have the budget on the side for that.

I really hope you will take in consideration all the past and looking to end Dane’s career with us.. We are very loyal to all our ambassador, today Tom, Mark all those legends are still under contract with us,. Dane will be the same.. He is our ambassador and part of the Family. If he think that Pierre doesn’t like him he is totally wrong, he is just waiting to build that relationship! We all love Dane we want Dane to stay, everyone want to work with him so hopefully we will continue..

If Dane does not accept our proposal, the next step would be to ask the court to `reject’ his agreement. Following our request, it is likely that the court will treat it as though we terminated the agreement. 

Let me know if you have any questions..

We are waiting to get an answer before Nov 1st 2015. After that we will consider that you are not accepting our offer.

It will give you plenty of time and hopefully you will come back to us before with a positive return.

Blair I’m open to talk any day any time, i’m here always available for sharing and make this deal happen.

Thank you

Miky

An email exchange between Dane’s management and Quik heads ensued concerning altering a non-disparagement clause in the termination agreement, as well as reducing the time line regarding removal of Reynolds from Quiksilver promotional material.

From Scott Lindley at Wasserman,

Our only issue is that we need to remove the non-disparagement provision. Not because Dane intends to go around disparaging QS and its employees, but as you know, Dane has always tried to be an open book with his fans. This is one of his traits that makes him so appealing to everyone in the surf industry, including QS. We don’t want to have to quash his personality out of fear that he may cross a toe over the line somewhere.

and

It is really important to Dane to have the Internet content removed ASAP so I have moved that reference back to 2 weeks, rather than 1 month.

An agreement was reached, termination papers signed on November 5, 2015. It spelled out a schedule for removal of Dane’s likeness, and altered the “non-disparagement” clause to read, Each Party agrees that it shall not knowingly and/or intentionally slander or libel the other Party.

Noticeably absent from the termination agreement is any form of further payment to Reynolds, meaning he agreed to more or less walk away from his deal. Surprisingly, at no time do any of Dane’s representatives float the notion of Quik simply buying out the remainder of Dane’s contract. Or at least, not within any of the emails filed with the court.

From Quiksilver’s filing:

Nevertheless, on November 18, 2015, another lawyer, Joseph A. Eisenberg, filed proofs of claim on behalf of ten (10) different individuals, including Reynolds. Exhibit B. The proof of claim filed on Reynolds’ behalf (“Reynolds’ Claim”) was assigned Claim No. 616, and asserted a general unsecured claim in the approximate amount of $3.6 million for amounts allegedly due under the Sponsorship Agreement. Exhibit C.

Upon information and belief, neither Reynolds nor Lindley nor Wasserman informed Mr. Eisenberg that Quiksilver and Reynolds had executed the Termination Agreement before Mr. Eisenberg filed the Reynolds Claim. Regrettably, Quiksilver recently learned that Reynolds will not stand by the Termination Agreement and will not withdraw the Reynolds Claim, thereby necessitating this Motion.

The ten individuals mentioned in Eisenberg’s filing included, in addition to Reynolds: Nate Adams, Iika Backstrom, Travis Pastrana, Ken Block, Craig Andersen, Dara Howell, Kelia Moniz, Torah Bright, and Travis Rice.

As far as monies purportedly owed to Reynolds:

A. For each year from April 1, 2011 through and including October 31, 2017, Claimant is to receive Base Compensation in the amount of $291,666.67 per month. As of the Petition Date, Claimant had failed to receive the sum of $369,444.45, and thereafter Claimant failed to receive Base Compensation of $21,603.93 of such minimum guaranteed compensation. Accordingly, Claimant is entitled to Base Compensation due and to become due Claimant in the aggregate sum of $3,599,381.75.

B. Claimant is entitled to receive Incentive Compensation in amounts nod presently determinable. This Proof of Claim will be amended to include such amounts as and when determinable.

C. Claimant is entitled to receive Royalty Compensation equal to three per cent (3%) of Net Sales of products by Debtor and its affiliates bearing the name or likeness of Claimant. The amount of such Royalty Compensation is not presently determinable, and this Proof of Claim will be amended to include such amounts as and when determined.

So, what’s going on here?

During the course of a bankruptcy a company forfeits control over the type of agreements it can enter into without the court’s approval.

Had Dane accepted the termination agreement, but not filed, or had withdrawn, his claim there was a chance the bankruptcy court would not approve his termination agreement, but Dane would no longer have a claim on the balance of his contract. Furthermore, a point of contention during negotiations was Quiksilver’s ability to use Dane’s image in promotional material for one year post-termination, as specified in his original contract. It is possible, if unlikely, that Dane would see his image used to promote Quiksilver while not earning a dime. And in the case of bankruptcy proceedings creditors find themselves in a “speak now or forever hold your peace” type situation.  If you don’t lay a claim to your cash you don’t see a cent.

In summary: Dane Reynolds has not filed a lawsuit against Quiksilver, but he has filed a claim against the company. Should the termination agreement be accepted it’s a near surety that said claim will be dismissed, and all parties will go about their business with no hard feelings.

If you’re interested in reading the termination agreement in its entirety you can see it here.

Termination Agreement

But, wait, there’s more!

In the course of Quiksilver’s filing they included the entirety of Dane’s contract. Interesting reading, coming at you in Part Two, later today.

Movie: Are you a surf cliche?

Derek Rielly

by Derek Rielly

A short-ish film, a very good one, that parodies the surf cliche… 

Do you enjoy the pleasure of stereotypes as much as me? Of course you do.

The celebrity-surfing-almost-killed, Amy Schumer, does it good. Click here to laugh! 

Actually, this good too. Slutty pal.

Anyway, no one does cliché better than surfers. How many sub-cultures can you count? Are you the front-zip-vest guy with long hair and a moustache who rides a leashless longboard? 

Maybe you model your game on Ryan Burch.

Do you remember all the Ozzie Wright-alikes?

This Australian-made short parodies the surfer stereotype staples of localism, bodyboarders and that dumb thing when the relatives of a surfer eaten by a shark say, “He would’ve wanted to die doing something he loved.”

The film isn’t flawless but a crust of bread given to a hungry man is better than nothing all, is it not?

Watch here. 

Fresh: Kelly Slater Surfs a Bean Bag!

Rory Parker

by Rory Parker

For upscale San Francisco home furnishing chain Pottery Barn…

Have we made fun of Slater’s Pottery Barn Teens collection before? I feel like we did, but a search only turns up this quick mention from a year ago.

Really let that one slip away. Pretty terribly blah stuff. “PBTeen: Now your kid can live in a vacation rental!”

Kelly Slater PB Teen

Kelly loves to switch hit! Who doesn’t! Or is this photo used in promotional literature for the home retailer PB Teen… flawed?

Awful, boring, expensive. But what do I know? I buy my furniture from the thrift store and sleep on a mattress that sits on the ground.

But this video! It’s a year old, how did I miss it?

You’ve got access to the best surfer who has ever lived. He plopped his name on your product, agreed to film some promo material. You sit down with your team of marketing dorks who are totally hip to what the kids dig, and this is the best you can come up with?

“Yeah, we should, like, totally get him on an SUP with a beanbag chair. It’s radical fresh!”

Update: Reynolds Sues Quiksilver!

Rory Parker

by Rory Parker

Your favourite surfer goes after the no-longer bankrupt Quiksilver for $3.59 million!

(Editor’s note: As it transpires, our little piece of second-hand reporting might be wrong. There was a comment that appeared, briefly, in the three below from Dane Reynolds aka sealtooth that read: “I don’t normally chime in on this stuff but this is so very false and super embarrassing.” Rory Parker’s legal connection, his gal, swiftly rounded up all the documents tended to the court and…ooowee… y’ain’t seen nothing like it. Offer letters, rejections, odd clauses like this:Screen Shot 2016-04-29 at 4.54.31 pm

And, every single detail about his contract. We release these fabulous documents tomoz!)

Dane Reynolds is suing Quiksilver in Delaware court, reports Swellnet.

At issue is $3.59 million bucks purportedly owed to Mr Reynolds, possibly due to a breach of contract stemming from Quik’s inability to remove Dane from promotional materials in a timely manner once he’d abandoned the sinking ship.

Why Delaware?

Because the state is the closest thing to an offshore tax haven that exists within US borders.

The state features minimal taxes, corporate friendly laws, and the ability to operate anonymously. Great place to hide money, avoid paying your fair share. Lawyer wife has been urging Mr Derek to incorporate BeachGrit there for a while. You can do it online, no need to pay Australia’s terrible taxes.

Skirt the upside-down country’s oppressive libel laws to boot. You could still totally sue us, but it wouldn’t be nearly as easy. And I’d get a lot less stuff edited because being mean in the absence of facts is apparently a crime down under.

The article also mentions another suit related to $7.3 million dollars in severance monies owed to former employees.

It’s really no surprise that a bankrupt company is being sued for money owed. After all, that’s the point of bankruptcy. Screwing your creditors.

Once the wife gets home I’ll force her to search the legal databases that totally confuse me. Will report any new information she can shake loose.