Golden Boy lawsuit document released
A 23-page lawsuit document filed by Golden Boy Promotions against rival promotional company Top Rank has been obtained.
Golden Boy sued Top Rank recently for a second time, claiming that Top Rank CEO Bob Arum and CFO David Lopez have been racketeering and participating in fraud.
Bob Arum shrugged off the allegations.
The suit, filed in the U.S. District Court of Nevada, accuses Arum of intentionally hiding and falsely accounting for millions of dollars that Golden Boy believes they have a stake in.
Issues include business operations and the financial outcomes of three Manny Pacquiao fights, against Joshua Clottey, Miguel Cotto, and David Diaz. Golden Boy is claiming that millions of dollars are owed to them as per a 2007 court ruling entitling Golden
Boy to take part of Top Rank’s revenue concerning Manny Pacquiao.
Golden Boy was granted ownership of a percentage of Pacquiao’s promotional contract after the fighter signed a contract with them in 2007, and then another with Top Rank. The first no longer applies.
The suit document described the previous 2007 ruling, as well as other vital information involving contractual terms between Pacquiao, Top Rank, and Golden Boy.
Under current terms with Top Rank, Pacquiao is entitled to a guaranteed purse of at least two million dollars per fight, or 45 percent of net profits of any proceeds relating to Pacquiao's events. He also receives 50 percent of remaining net profits, due
to an agreement between Top Rank and Pacquiao’s own promotional company, M-P Promotions.
As the document clarifies, the purpose of a purse is to ‘ensure’ a fighter take some profit, should the fight fail to profit (or turn out to be a financial disaster).
Due to Pacquiao receiving profits in the form of a purse and as owner of M-P Promotions, the “...plain intent of the M-P Agreement was to give Pacquiao 72.5 percent of the net profits from his events (45 percent as his purse and 50 percent of the remaining
55 percent to M-P), and for Top Rank to retain 27.5 percent of the net profits.”
Aside from outing background information, the document goes into thorough detail concerning the three fights in question.
Despite claims, Top Rank lawyer Daniel Petrocelli told ESPN.com that the allegations are "...completely fictitious...All of this is spiteful, because they haven't gotten over losing the litigation [over Pacquiao's promotional contract] a few years ago. This
is just spiteful and it will be redressed swiftly and decisively against all responsible parties.”
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