"Social Gloves is suing LiveXLive" - Austin McBroom finally opens up on bankruptcy allegations and blames business partner for delayed pay

Rumors of bankruptcy against Austin McBroom and Social Gloves surfaced on the internet days after the YouTubers vs. TikTokers event. They were also called out by several participants for not paying the fighters and other artists who took part in the event.

Vinnie Hacker, who was the sole winner for the TikTokers team at the event, spilled the beans on the BFFs podcast and Josh Richards that Social Gloves had not paid anyone and was filing for bankruptcy. Multiple other individuals followed suit.

People are laughing about the buys this event did. But it’s not funny that fighters, talent (myself included) have not been paid yet. Hoping this all works out in the end. https://t.co/KPCAVbTL89

— MARCOS VILLEGAS (@heyitsmarcosv) June 26, 2021

In the meantime, it was revealed that Austin McBroom was the owner of Social Gloves, which led to the ACE Family patriarch getting further backlash from the internet despite releasing a statement.

pic.twitter.com/eYem9qXe5E

— Social Gloves Entertainment (@socialgloves) June 25, 2021

In a recent media interview uploaded by The Hollywood Fix, Austin McBroom opened up on the matter for the first time since the allegations surfaced. The YouTuber-athlete revealed that the live gate numbers alone were enough to cover Social Gloves, so the bankruptcy rumors were utterly false.

Austin McBroom pointed the finger at their live streaming partner LiveXLive instead and revealed that Social Gloves filed a lawsuit against the global streaming platform.

"Now that the lawsuit is filed against LiveXLive, Social Gloves is suing LiveXLive, for several reasons. Obviously, you guys know the two rumors that have been going around... So, the two rumors are - Social Gloves is bankrupt which cap, it is false, it is not true. Everyone that was at the event knows that there were probably like 20,000 people there just at the gate alone. You probably make $3 or $4 million dollars. We're not even talking about pay-per-view numbers, we're not talking about brand deals. We're just talking about at the event. So Social Gloves is not bankrupt at all," Austin McBroom said.

Austin McBroom also addressed the accusation of not paying the fighters and stated that LiveXLive was to blame for that.

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Austin McBroom: LiveXLive have not paid Social Gloves one penny

Austin McBroom commented that the fighters who participated in the Social Gloves: Battle of the Platforms event on June 12 at Hard Rock Stadium in Miami Gardens, Florida, were indeed not paid, including himself. However, the reason behind that was not his company but LiveXLive.

"The second thing they're saying that fighters did not get paid. Yes, fighters have not got paid, yes, including myself. But that is because of LiveXLive."

Austin McBroom explained the relationship between Social Gloves and LiveXLive to make the situation easier to understand for the fans.

"So you got the Social Gloves which is the promotion company that put together the event, right? That organizes the fight, that puts together the event. LiveXLive is the live streaming partner. In order for an event to take place, you need a live streaming partner. Everyone thinks that Social Gloves did everything. No! Social Gloves partnered with LiveXLive who live streamed it and collected everybody's money. So the reason why the fighters haven't got paid yet is because LiveXLive has been holding on to all the funds. They have not paid Social Gloves one penny, and that's why Social Gloves is suing LiveXLive."

Austin McBroom spoke with some conviction that the fighters will be paid before Social Gloves 2, which will take place 3-4 months from now. He mentioned a possible matchup between Logan Paul and Bryce Hall, his opponent at the June 12 event. However, McBroom said that 'The Maverick' would have to show him some wins lined up first.

Watch Austin McBroom's full video interview below: