Golden Boy and Top Rank take boxing match to court
The cold war in boxing between promotional giants Golden Boy Promotions and Top Rank Promotions threatens to explode into plain view as Golden Boy has filed a lawsuit against Top Rank CEO Bob Arum and
CFO David Lopez.
Golden Boy Promotions, headed by founder Oscar De la Hoya and CEO Richard Schaefer, filed a lawsuit in the U.S. District Court of Nevada accusing Top Rank of racketeering and fraud in several high-profile
bouts with seven-division titlist Manny Pacquiao. They seek damages of $3 to $5 million plus attorney fees.
A 2007 lawsuit was settled between the two companies with Golden Boy gaining ownership of a percentage of Pacquiao’s promotional contract. The allegations of the current lawsuit stem from what is being
perceived as a breach of that contract.
Golden Boy asserts they are owed millions from three Pacquiao bouts. In question are his 2008 lightweight title fight against David Diaz, a 2009 welterweight title fight against Miguel Cotto, and a welterweight
title fight in March against Joshua Clottey.
As well, Golden Boy claims that Top Rank has routinely failed to report revenue from Pacquiao’s fights and falsely inflated expenses to avoid paying Golden Boy the figures outlined in their 2007 settlement.
In 2006 Pacquiao signed promotional contracts with both companies, but was relieved of his obligations with Golden Boy by former federal judge Daniel Weinstein. Top Rank was granted his promotional rights,
while Golden Boy a percentage of Top Rank’s profits for each of his fights.
Dan Petrocelli, Top Rank’s attorney, said: “The case is groundless, and there is no basis for this at all. Beyond that, there is no right to file this case in any public court proceedings. [...] Golden
Boy had specifically contracted, under the grounds of the settlement, that any disputes with Top Rank had to be filed in arbitration, and in quick and efficient and confidential proceedings.”
In response Golden Boy attorney Judd Burstein said: "I'm not going to waste my time litigating in the media. In my experience, virulent outrage is the traditional response of the guilty persons."
Tags: