Response to "Sponsor Not Paying"

2BIGTJ

RUKKASTIXX Motorsports
Location
Highland, Utah
Let me start by saying that I was hesitant to post this but from the persuasion of a forum member decided to do it. I would just ask that you all have an open mind and understand that I am sincere in my post.

It’s a known fact that all businesses take time and go through growing pains. We do no dispute that we owed money to AreaBFE for a sponsorship. We have had every intention and have been making every effort possible to make this debt square. AreaBFE has made it a point the last week to paint a picture of RUKKASTIXX that we are just refusing to pay for our sponsorship. There are always two sides to every story. I am here to tell our side of the story that Olaf has decided to bring public. When we signed the contract for our sponsorship it was made clear to AreaBFE that we needed to wait for spring orders to come in to pay the balance of our contracted amount. I brought a check to Olaf at EJS this year as a down payment. As with many businesses, things didn’t go completely as planned financially for us. We discovered a few issues with our product that we felt strongly needed to be changed to make our product up to standards. Long story short when the time came to make our next payments we didn’t have the money. We didn’t hide from them. I was in constant contact with Olaf with where we were. We had problems come up with our financing. Again we never avoided AreaBFE and their attempts to collect. Olaf knew the entire time where we were at in regards to paying the debt. I had a phone conversation with Olaf where he said that “if I didn’t pay him his money by Friday he would go on facebook ,and the forums and Ruin me and my company” and “that he had enough pull and reach that he could do that in one day” I told Olaf that I would make smaller payments to pay down the debt until I could come up with the remaining money. He said that would be just fine. I told Olaf that I just needed to review my finances and see what I could do. 3 days later is when he started bashing us on facebook. The nest day a Post on this forum. AreaBFE also failed to mention in their previous posts that I personally delivered over $6,000 in product for them to sell at events to try and help them through the financial hardship we had put them through. Now this does not make things all better I know, but it shows that we were trying to do what is right. I wanted to come on here and let people know that we never avoided this debt. Up until AreaBFE started this bashing campaign we had every intention of paying the debt and were searching to ways to do that. At this point though how can we pay a company to promote our brand when they are all over the internet preaching about how bad we are? I personally support everything that AreaBFE has done and will continue to do for our sport. This is not an issue of us trying to avoid a debt, it’s simply a issue with us over committing and not being able to perform like we wish we could have.

Some of you will understand, some of you will not. But this is our side of the story that AreaBFE brought public when they should have dealt with it in private. I know we will still get flamed for over committing but at least our side of the story is out now. We are deeply sorry to AreaBFE for the problems we have caused, and we wish things would have happened differently. But, this is me taking reasonability for what has happened. I hope it does not sound like I am just making excuses because that was not my intent. We were in the wrong for not paying , but had AreaBFE not gone and tried to publicly bash RUKKASTIXX it would have been resolved by now.

Sincerely
Rukkastixx Management.
 

Cascadia

Undecided
Location
Orem, Utah
I'm not here to flame for anything but are you still going to try and pay or are you just backing out all together because of some "bashing"? I personally think it would go a long way to continue to try and do your duty to the best of your ability. But this is just my opinion.

I have never been to BFE but I plan to so I hope this is resolved or covered in any way possible so we can continue to have some of the best wheeling around!
 

Olaf

Active Member
Supporting Member
Jeremey, you're on record stating that we've upheld our part of the agreement. You're on record stating that you're in default. You haven't made any effort to even make small payments on the balance. Now that we go public with this, you're upset, you want to blame us, and you're using that as an excuse not pay us what you agreed to.

Jeremey, I asked you very sincerely several times to make a good faith payment, something small, and set up a new payment plan with me but you didn't. You just kept telling me that money was coming but we never received a dime toward the balance! Why are you getting upset at us because we honored our part of the business arrangement and at the point of going public, you were 84 days past due on the second installment and 28 days past due on the final installment?

Now let me address the "$6000" in product. First of all, the contract states that we are to hand out literature, stickers, etc at events and the reason that we were handing out your product during EJS is because your promotional team couldn't make it, so you left product with us. I have records of the amount of product you provided. In fact, we still have about 5 cases if you need them back?

Not that this has any bearing regarding the sponsorship, but you never mentioned any issues with your product where you felt strongly that you had to improve the standard. Should we not have been passing out the product if it wasn't up to "standard"?

I hope this adds some clarity to the situation and despite all of the issues Jeremey, if you're up to making a down-payment and payment arrangement then we'd love to keep you as our Official Energy Product of AreaBFE. We will happily remove the post on fb and post a very positive campaign for your company and product.

Sincerely,
Olaf Kilthau
Owner/Managing Member AreaBFE
 

ChestonScout

opinions are like Jeeps..
Location
Clinton, Ut
I received some rukkastix at EJS.


I have never had a energy shot before but WOW......I had the green apple. I drank it, and it had to be the most nasty thing I have ever tasted! I immediately started dry heaving and struggled to keep it down.


Maybe the problem with the product that needed fixed was the taste??



Anyway, Bashing or not I still think you need to uphold your end of the bargain. Area BFE needs this PROMISED money to help keep the place open.

I love Area BFE and I hope this has no negative influence on their finances. I will make a bigger than normal donation on my next trip down
 

Cherokeester

Registered User
Location
Wellsville Utah
I have learned two things running my own business.
1. Pay your bills first, even if you don't eat.
2. Do not spend money you don't have, or don't spend what you think you have coming on your ar sheet.
 

sixstringsteve

Well-Known Member
Location
UT
It sucks that your business has seen tough times. It sucks that you didn't pay your bills. It sucks that Olaf is bashing your company.


As I'm sure you know, $6000 in product is not the same as a $4000 check. Olaf can't pay property tax in Rukkastixx.

At this point though how can we pay a company to promote our brand when they are all over the internet preaching about how bad we are?
you can pay them because you have a contract saying you will. It's sad that it turned sour like it did, but a contract is a contract.
 
I'm no lawyer, but when the agreement is between two business entities, it would be much more likely to sever the agreement under these conditions. Sure , based on what we see here, both parties have cause and could sue for damages. The only one who would win in that case would be their lawyers.

I have no side to take here, just pointing out the obvious.
 

Tacoma

Et incurventur ante non
Location
far enough away
A fine pickle, I'd say. Rukkastix and BFE need to work out a payment arrangement-- money, not product. Let's hope something mutually agreeable can be decided on.
 

kgb

Registered User
Location
Hooper
BFE complaining publicly about your failure to pay does not constitute a breach in contract. Your failure to pay for services rendered however does.
 

Stephen

Who Dares Wins
Moderator
Both sides have handled this poorly. Rukkastix for not paying, BFE for airing this publicly. Should have been handled behind closed doors. Both brands are harmed by this. Sucks.
 

Kevin B.

Not often wrong. Never quite right.
Moderator
Location
Vehicular limbo
I don't see how BFE is a brand. BFE is Olaf, really. I happened to be on line to see the longer version of his response to this thread before he edited it, and I'll respect him by not repeating details but it appears he made a substantial effort to resolve this quietly. He apparently reached the point where he believed that there was no further progress to be made behind closed doors. He can suck it up and take the hit, he can sue Rukkastix, or he can broadcast his trouble and hope for public opinion and pressure to help convince Rukkastix to make it right.

I may not have chosen the exact course he did, but I understand why he did it and I don't think he's wrong.
 

Stephen

Who Dares Wins
Moderator
Is it suddenly taboo to talk on the internet about getting ripped off?

It's taboo for companies to bicker online. This was a contractual argument that should have been handled through legal channels. IMHO.

I don't see how BFE is a brand. BFE is Olaf, really.

It's a business venture for him, thus it is a brand. Personally, I don't know who Olaf is, all I know is BFE.

I happened to be on line to see the longer version of his response to this thread before he edited it, and I'll respect him by not repeating details but it appears he made a substantial effort to resolve this quietly. He apparently reached the point where he believed that there was no further progress to be made behind closed doors. He can suck it up and take the hit, he can sue Rukkastix, or he can broadcast his trouble and hope for public opinion and pressure to help convince Rukkastix to make it right.

Option A is valid if the company could take the hit. Seems that it couldn't. Option B was the logical route. This was a legal binding contract (I assume. If not, then thats a whole other can of worms), thus the courts would have been on his side. Option C was immature. As we can see, it has simply made Rukkastixx more intransigent. Option A and B are still open to BFE.

I may not have chosen the exact course he did, but I understand why he did it and I don't think he's wrong.

I don't think that BFE was necessarily wrong in wanting to gripe about this on the internet, it is simply in my opinion the wrong course of action. Yes, they had tried to resolve this for over a hundred days, thats got to be taxing and the desire to vent is high. But telling the other business that you are going to "go on Facebook, and the forums and ruin you and your company" is childish and then actually doing it is, well, even more juvenile from a business perspective.
I helped organize events at the University of Utah for two years (Redfest, Grand Kerfuffle, ect) and we always had sponsors fail to come through. You know what always worked? A friendly call from Lawyer McHardass Esq. from the legal department. That got the ball rolling real quick. Why? Because businesses understand (or should) that a legal binding contract has legal consequences. And this should have been done soon after the first payment wasn't submitted. BFE's first mistake was allowing this to drag out as long as it did. It's sometimes difficult to be a hardass with people, but sometimes you've got to. They should have lawyered up after the first "good faith" payment was missed, dropped them as a sponsor and never looked back. Bad mouthing them on the internet, to me, diminishes the brand (as I said).
Now let me be clear, I'm not defending Rukkastixx. This is all their fault from the get go. If you can't follow through on your commitment, then be prepared for the consequences, regardless of what they are. They should have figured out a way, ANY way to make their payment. Selling the boat, car, house, whatever just to keep things square. Meeting existing commitments should have been their primary focus before they started to try and expand.
Finally, I'm no expert, but since this is all on the internet now any old Joe can toss his two cents in the ring. ;)
 
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