Manny Pacquiao may have lost his super fight with Floyd Mayweather Jr. on May 2.
But Pacquiao promoter Bob Arum and his company, Top Rank, Inc. , are trying to inflict a legal blow to the chin of Mayweather manager Al Haymon in the form of a blistering 50-page anti-trust lawsuit that was filed in U.S. District Court in Los Angeles on Wednesday.
Arum is seeking $100 million in damages and an injunction to stop Haymon from “rigging the boxing industry” and hindering the business practices of promoters such as Top Rank and Jay-Z’s outfit, Roc Nation.
The suit also names as a defendant the asset management and financial planning company, Waddell & Reed, which allegedly finances Haymon’s Premier Boxing Champions (PBC) boxing series, investing roughly $400 million.
In the past several months, Haymon, who reportedly manages close to 200 fighters, including Mayweather, has transformed the way fans consume boxing by, according to the suit, arranging time-buy deals with NBC, CBS, ESPN, Fox Sports and Spike to show boxing on network television.
The suit compares these tactics to the “predatory payola practices employed in the music industry in the mid-20th century” by gaining exclusive commitments from broadcasters by spending millions of dollars for the spots.
It’s all part of a short-term loss strategy that could exceed $200 million in the first 24 months of operation, the suit alleges.
“Once Haymon obtains monopoly power in the market for promoting professional matches, he will recoup the losses by charging exorbitant prices to broadcasters, sponsors, and consumers” to the detriment of rival promoters such as Top Rank, the suit alleges of Haymon’s strategy.
Haymon is a reclusive figure who is rarely photographed and never talks to the media. A spokesman for the PBC declined comment to the Daily News on Wednesday. Getty Images Al Haymon’s long list of fighters he manages includes Floyd Mayweather Jr.
As a way to muscle out the competition, the suit also alleges that Haymon reserves dates at venues such as the Staples Center and The Forum to keep rivals from putting on their own shows. Haymon then cancels the shows when his competitors go elsewhere, the suit says.
The suit also alleges that Haymon has acted as both a manager and promoter, violating the principles of the Muhammad Ali Boxing Reform Act, among other state and federal laws.
To circumvent the law, Haymon employs “sham” officials to act as promoters for his shows, the suit says.
However, Haymon controls the negotiations for the show, not the promoter.
The suit also mentions a similar lawsuit filed in May by Oscar De La Hoya’s Golden Boy Promotions that alleges similar “anti-competitive” practices by Haymon.
And in April, the Association of Boxing Commissions sent a letter to U.S. Attorney General Loretta Lynch, requesting she look into Haymon and the PBC’s business tactics.
“I applaud Bob Arum and Top Rank Boxing for stepping up on behalf of fighters not only in their own stable, but all across the sport,” De La Hoya said in a statement on his Facebook page. “Those like Bob and myself who have spent the bulk of their lives around boxing understand that the Muhammad Ali Boxing Reform Act is a crucial piece of legislation that serves to protect boxers and enhance the sport. Golden Boy Promotions will continue to push forward with our own lawsuit to ensure our wonderful sport continues to grow in a competitive, just manner.”
