NEW YORK ? Former boxing champion Manny Pacquiao has filed a lawsuit against his promoters, alleging they withheld some of his earnings.
The lawsuit against M&M Sports, Inc. and Murad Muhammad was filed Wednesday. Pacquiao, from the Philippines, alleges the promoters transferred more than 30 percent of his purses to a shell company on the basis his American taxes would be paid from there.
But the taxes were never paid, the lawsuit said, leaving Pacquiao with huge bills for back taxes, penalties and interest. The lawsuit also alleges the arrangement meant his business managers agreed to purses that were below market, since they could make more from the money they set aside than they would from the 10 percent fee on properly negotiated purses.
“It has taken me a while to come to terms with the fact that I have been cheated by people whom I trusted,” Pacquiao said in a statement.
Pacquiao (39-3-2) was the IBF super bantamweight champion from 2001-04 and WBC flyweight champion from 1998-99. He lost his most recent bout to Erik Morales by unanimous decision in their 130-pound showdown last month.
