If you?re wondering why New Jersey promoter Murad Muhammad is flashing a wide grin despite two-time world boxing champion Manny Pacquiao?s recent loss to Erik Morales in Las Vegas, it?s not because he?s got new dentures.
The reason why Murad is looking like a million bucks is he?s grinning all the way to the bank.
Murad is one shrewd dude.
Muhammad Ali?s former bodyguard persuaded Pacquiao to extend his authority as exclusive US agent for another three fights early this year on the threat that he wouldn?t be able to lock in HBO (Home Box Office) dates otherwise.
HBO holds the key for top money fights in the US and Murad claims he?s tight with the cable network bigwigs. The assumption is without Murad, Pacquiao is nothing in the US market.
A source close to Pacquiao claims he signed “under duress.”
Pacquiao probably got worried because he only fought once in the US last year. After his draw with Juan Manuel Marquez, Pacquiao couldn?t land another fight on HBO. Murad insists he had Morales on standby in July and Marco Antonio Barrera in November. Neither fight materialized.
When Marquez bargained for purse parity in a February rematch with Pacquiao, he priced himself out of the fight and Morales entered the picture. That set the stage for the Las Vegas duel two weekends ago.
Murad says Pacquiao agreed to be represented by him at a minimum purse of $500,000 per fight. He describes the contract to be “air-tight,” insinuating Pacquiao has no way out of the deal.
There is no mention of Pacquiao sharing in any pay-per-view receipts in the contract. There is also no mention of how much more he could possibly earn in the three bouts.
As it turned out, Murad negotiated a fat deal for Pacquiao with promoter Bob Arum. Murad and Arum were supposed to be co-promoters but the fact is Top Rank took the lead position. Murad?s responsibility was delivering Pacquiao to Arum.
Murad says Pacquiao should be eternally grateful because instead of only $500,000, he got $1.75 Million for taking on Morales.
But the rumor is Pacquiao?s real purse was $2.8 Million. If that?s accurate, then Murad skimmed over $1 Million off the top for his bank account. Whether he shared his cut with anybody is beside the point. What is clear is Pacquiao had no share of the cut.
Regarding the pay-per-view receipts, Pacquiao was left out of the partitions, too. A source said Murad pocketed at least $3 Million from what should have been Pacquiao?s 40 percent share of the net proceeds.
What?s worse is Pacquiao may not even take home his share ofthe $1.75 Million purse because the US IRS (Internal Revenue Service) is hot on his tail for back taxes amounting to $400,000 excluding interest and penalties.
Pacquiao may wind up holding an empty bag while Murad deposits at least $4 Million in his bank account.
Murad says there is nothing illegal in what he did because he is protected by a contract that bears Pacquiao?s signature. But was he morally right in leaving Pacquiao with the crumbs? After all, it was Pacquiao who put his life on the line in the ring, not Murad.
The issue is morality, not legality.
Now there is talk that under the Muhammad Ali Boxing Reform Act, Murad may be cited for violating the law on transparency and full disclosure. Pacquiao?s new management team is claiming that Murad deliberately withheld vital information on money to be earned from the Morales fight. If it is proved that Murad is guilty, his contract may be rescinded by the courts. In this case, the issue wouldn?t only be morality but also legality.
Nullifying Murad?s contract will free Pacquiao to negotiate his next fights with new manager Shelly Finkel by his side for at least the coming two years.
