Older Diaz returning to Japan

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In the Chinese fire drill of EliteXC's talent division since its closure last Monday, fighter managers are taking the legal reigns to free their clients.

Cesar Gracie, manager of EliteXC fighters Nick Diaz and Jake Shields, informed MMAWeekly.com he had sent EliteXC a notice on Friday stating that the company had breached their contracts with his clients.

The clause in EliteXC's contract, as reported by Loretta Hunt of Sherdog.com, states that should the company not be able to fulfill the terms of its "promotional and payment obligations" -- essentially, to keep its employees working -- the fighters could seek to terminate the agreement. EliteXC had 30 days from the notice of breach to correct the situation.

Gracie said he is already making plans for Diaz's next fight. The 25-year-old fighter has an existing clause in his contract allowing him to compete in Japan as long as it doesn't interfere with his EliteXC duties.

"We're not doing anything wrong if he fights in Japan," Gracie said. "As far as him fighting in the U.S., then the 30 day thing (applies)."

Gracie said representatives from Dream and Sengoku had approached him about using Diaz. Dream's parent company, Fight Entertainment Group, is planning a K-1 Dynamite! event for New Year's Eve, while Sengoku 7 is scheduled for Jan. 4.

"We'll be on one of those two cards," Gracie said.

As for Shields, UFC President Dana White said he was interested in signing the EliteXC welterweight champion. In late November, that could be a reality.