Nick Diaz moves in for a hit against Robbie Lawler during UFC 266. Gary A. Vasquez-USA TODAY Sports

If it seemed like Nick Diaz was fighting well below his usual standards at UFC 266 last September, there’s a pretty good reason for that, according to coach Cesar Gracie.

While Diaz’s return against Robbie Lawler marked the Stockton, CA, native’s first Octagon appearance in more than six years, he was dealing with more than just age and ring rust. Diaz, who called it quits 44 seconds into the third round of the bout, was also battling a pretty serious neck injury.

“So Nick, he went into that fight and his neck was pretty messed up,” Gracie said in an interview with Submission Radio. “Robbie’s a great, tough fighter and everything. And, Nick was doing great. And then you kind of see Nick kind of just kind of fading as the fight wore on. So, Nick had an operation very recently here seven weeks ago. So, two of the discs had ruptured in his neck before the fight. So, he was having numbness of the hands. That’s why he didn’t make 170. He fought at 185, is cause it was impossible to train. He just didn’t have any strength. He didn’t have what you’re used to, the Nick Diaz, you know, he didn’t have it.”

Those circumstances would normally dictate that a fighter withdraw from a scheduled bout, but Gracie says that wasn’t an option for Diaz, who was facing financial concerns with both the Nevada State Athletic Commission and the Internal Revenue Service.

“Nick pretty much had to take that fight. There was a lot of things weighing in on him. What people don’t know is that the commission in Vegas was still demanding their money from, remember the marijuana test that we didn’t pass,” Gracie said. “…Even though it’s legal, they said ‘You still owe us that $75,000.’ I think it was some insane amount. You know, it was like ‘What? You still have to pay it? Even though it’s legal now?’ When that happened, it wasn’t, and we want to, and so we gotta. You’re gonna have to deduct it from your fight purse. And Nick really hadn’t signed the best contract in the world.

“And so what happened was, they said, we’ll pay you more money, but you have to fight this fight here, and on this date. It was a thing. It was like, if you don’t take that fight, you’re almost gonna fight for free, you know, by the time [you pay the taxes and the fine]. Obviously, people know, that’s not a secret, he had some tax issues in the past. He had to pay that fine, which, you know, it was just, you had to do it. It was like, well, Nick, he had his back on the wall. And it was one of those unfortunate things where he had to fight, and that’s it.”

Diaz has since had the the operation to repair the two ruptured discs, and Gracie claims that the former Strikeforce champion is eager to fight again, this time closer to peak form. Diaz, who recently turned 39, hasn’t won a fight since besting B.J. Penn on Oct. 29, 2011.

“So, we finally were able to go and he got an operation and he put the titanium discs in his neck. So, he’s feeling great from that right now. And it’s like we’re getting the old Nick back, which is really good,” Gracie said. “So, now that that’s happened, we’re waiting for the doctors. He’s got another appointment I think next month. And then he should be cleared to start his hard training again. Because right now he can only run and hit the pads and everything.

“But he definitely wants to fight. And the UFC, I’ve been in contact with them, they just actually called me the other day asking about Nick, and there’s some pretty cool fight options that are in front of us.”

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