Surf contest unable to catch a break
The organizers of the famed Mavericks big wave contest plan to auction business assets.
The companies that manage California’s most famous big wave surfing competition plan to auction the event’s business-related assets next month as part of bankruptcy proceedings.
The one-day, invitationonly contest draws elite surfers from around the world to Mavericks, a rocky reef break just south of San Francisco, to ride some of the biggest, steepest waves in the Americas.
The event, owned and governed by a separate organization whose board includes surfers and businesspeople, has been held nine times since 1998 but was canceled this year because of financial troubles.
Titans of Mavericks and affiliate Cartel Management Inc., which filed for Chapter 11 protections in late January, have scheduled the public sale for June 1 at the law offices of Levene, Neale, Bender, Yoo & Brill in Los Angeles. Minimum opening bids of $1 million are required, a spokesperson said.
Participants must be deemed financially qualified and make a $50,000 deposit by May 25.
Griffin Guess, the founder of the Titans of Mavericks, said in a statement that an auction will create “a level playing field” for selling the company’s brand and other assets. The sale might include a pending permit to hold the event.
Titans officials say they have a list of 71 interested parties, including sports brands, media and Internet companies, national television networks and a handful of wealthy individuals.
The Chapter 11 filing allows Cartel and Titans to develop a reorganization plan to keep their operations going while paying off creditors over time.
According to court records, Cartel faces about $1.9 million in claims and Titans of Mavericks more than $776,335 in claims from their top 20 creditors.
In April, Mavericks Invitational Inc., founded by Jeff Clark, who is believed to be the first surfer to ride the break, also filed a claim for about $2.15 million against Cartel Management.
Mavericks Invitational’s chief operating officer, Cassandra Clark — Jeff Clark’s wife — says her organization owns the event and entered into an agreement with Cartel for merchandising, media relations, advertising and to find sponsors. Cartel then rebranded the event as Titans of Mavericks, she said.
Cartel could not be reached for comment.
The contest, which would have included a women’s heat for the first time this year, generally occurs between November and March, depending on the surf and weather conditions off rugged Pillar Point near Half Moon Bay.
The February cancellation came a week after Red Bull, Mavericks’ broadcaster and only sponsor, sued Cartel and Titans of Mavericks, alleging breach of contract. The lawsuit seeks $400,000 in damages.
Meanwhile, the San Mateo County Harbor District, which has issued a permit for the contest, on Monday filed a motion opposing the auction.
If the Mavericks permit is auctioned, district officials say they want to make sure the winning bidder can meet the permit’s conditions and has held successful events.