New York-based boxing Promoter Cedric Kushner once said that in the world of high-stakes boxing, “you’re not considered a major player unless you’re being sued and suing someone else at any given time.” Notwithstanding, it is unlikely that Oscar De La Hoya’s Golden Boy Promotions and Bob Arum’s Top Rank, are too concerned about their respective standing in the boxing world, after their bitter dispute over promotional rights to super featherweight king Manny Pacquiao settled last Friday following court-ordered mediation.
The 28-year-old Philippine sensation Manny Pacquiao, 44-3-2, 35 KO’s, is generally recognized as second only to Floyd Mayweather, JR., on the pound-for-pound list, and is widely considered one of the most entertaining and marketable athletes on the boxing scene. Pacquiao’s resume boasts many fight of the year candidates, including a 2003 destruction of super featherweight legend Marco Antonio Barrera, a 2004 draw against Juan Manuel Marquez where Pacquiao floored Marquez three times in the first round and only settled for a draw as a result of an admitted scoring error. If that wasn’t enough, “Pacman” was a part of a historic trilogy against the never-before-stopped future Hall of Famer Erik Morales, where Pacquiao won the final two fights on destructive knockouts.
In mid-2006, the highly sought-after Pacquiao was a promotional free agent, and entertaining offers primarily from Golden Boy Promotions and Top Rank. When Pacquiao was promoter shopping, Golden Boy Promotions was already a significant promotional player with a stable including Oscar De La Hoya, Bernard Hopkins, Shane Mosley and Marco Antonio Barrera, amongst many others, but was still relatively new to the business. By contrast, Bob Arum, the President of Top Rank, had been promoting some of the most significant fights in the world for more than twenty years.
A Golden Boy signing of Pacquiao would have elevated the bourgeoning enterprise into the most formidable promotional outfit in the country, and Top Rank would have been forced to take a back seat. To complicate matters, Oscar De La Hoya, objectively the most popular fighter in the world, was formerly promoted by Bob Arum, and the two split under less than amicable terms. De La Hoya took Bernard Hopkins with him, and Arum ended up losing two of his most significant pieces, as well as having to compete with an intimidating new promoter for rising young fighters, especially in the Hispanic community. The relationship between the two companies has been sour from the start.
In September 2006, Golden Boy CEO Richard Schaefer announced that it had contracted with Pacquiao for a lucrative seven-fight deal that included a $500,000 signing bonus for the Philippine superstar. However, Golden Boy’s victory was as short-lived as a Floyd Mayweather, JR., retirement. In November 2006, Top Rank announced that it had signed Pacquiao to a four-year promotional contract, which included a $1,000,000 signing bonus. That’s right– two contracts, for the same services, with two separate outfits. It seems that “Pacman” took a page out of the Eric Lindros School of Contract Negotiation.
Naturally, lawsuits started raining down from all different angles. Among other claims, Golden Boy sued Top Rank for “tortious interference,” alleging that when Top Rank negotiated with Pacquiao and signed him to a promotional deal, that Top Rank knowingly committed a wrongful act that damaged the contractual relationship between Golden Boy and Pacquiao. Arum’s Top Rank cross-claimed that Golden Boy had in fact tortiously interfered with a Top Rank contract, as Pacquiao was then under contract to fight with Top Rank’s star Erik Morales later in November 2006, despite the fact that that contract was limited to the Morales fight and made no reference to future fights or promotions.
Although Golden Boy seemed to be in the stronger legal position, a December 2006 announcement by Pacquiao that, “my new promoter is Top Rank” substantially weakened Golden Boy’s position. If Pacquiao chose to honor the Golden Boy contract, it is likely that the latter contract signed with Top Rank would have been deemed a nullity and Top Rank would have been required to pay Golden Boy damages on top. Pacquiao’s loyalty to Top Rank did not turn a potentially voidable contract into a presumptively valid contract, but from a practical perspective it weakened Golden Boy’s position.
These legal battles had the collateral effect of robbing the boxing public of some of the most significant fights the sport had to offer. Pacquiao was clearly “the man” in the 130-pound division, and the only suitors worthy of a date with Pacman were Marquez and Barrera, for rematches of their previous thrilling bouts. Public demand for a Pacquiao rematch with Mexican warriors Marquez and/or Barrera was massive, however both fighters are promoted by, guess who? That’s right, Golden Boy. The only Top Rank super featherweight worthy of stepping in the ring with Pacquiao was Erik Morales, with whom Pacquiao had already been-there-and-done-that.
As a result, Pacquiao settled for an April 2007 fight with little-known Jorge Solis, on an independent PPV card, while Barrera and Marquez squared off in an epic battle in Las Vegas, on HBO PPV, which Marquez won via a close decision.
Though industry insiders understood the contentious nature of the promotional dispute, most believed that a settlement would be reached so that Pacquiao could fight one of the two Mexican icons in his next fight. Frustrating for boxing fans, even months following the Marquez-Barrera fight, Pacquiao-gate still had not been resolved. Golden Boy surged forward announcing a potential Marquez-Barrera rematch in the fall, and Pacquiao was seemingly going to remain the odd man out at the top of the super featherweight division. Rumors circulated that Pacquiao would fight one of his Top Rank brethren, Humberto Soto, a solid fight, but not nearly as compelling or lucrative as a Marquez or Barrera rematch.
Finally, on Friday, June 29, Golden Boy and Top Rank announced that they had reached a settlement after court-ordered mediation. Although the details of the settlement have been kept confidential, the parties acknowledged in a press release that, “Bouts between Manny Pacquiao and marquee fighters under contract to Golden Boy will be co-promoted by Golden Boy and Top Rank. Fights between Manny Pacquiao against fighters other than Golden Boy fighters will be promoted by Top Rank with Golden Boy retaining a promotional interest.”
Almost without skipping a beat, the press release continued, “The first fight which will be presented under this arrangement will be Manny Pacquiao vs. Marco Antonio Barrera on October 6, 2007 at Mandalay Bay Hotel and Casino in Las Vegas.”
Ironically, the October 6 fight-date is also currently scheduled for a heavyweight title fight on Showtime between WBC Belt-Holder Oleg Maskaev and power-punching Sam Peter, who were recently embroiled in a complex legal clash involving former champ Vitali Klitschko, before a settlement was reached and the fight was made. However, the true “heavyweights” fighting on that date will be Golden Boy and Top Rank, the fight just shifts from the counselors to the combatants and from the courtroom to canvas.
