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According to Masvidal, the issue stems from Covington (16-3 MMA, 11-3 UFC) failing to pay his striking coach an agreed-upon percentage for his services.
Eventually the UFC convinced Diaz to accept the Chimaev fight, but Diaz made it clear he had no intention of re-signing. Despite widespread criticism, the UFC pushed forward with Chimaev vs. Diaz as the UFC 279 headliner, which didn't happen only because Chimaev massively missed the 171-pound limit.