Andy Cruz has officially freed himself from a prior party who claimed to be his co-promoter.
A Northern California judge ruled that a 2023 promotional agreement between the unbeaten lightweight contender and New Champion Promotions, LLC (NCP) was not valid and is unenforceable. The decision was rendered on Wednesday in the U.S. District Court for Northern District of California, which allows Cruz to move forward solely under the direction of Matchroom Boxing.
The ruling dismissed NCP’s claims of a percentage-based compensation from the existing terms between Cruz and Matchroom, on the basis that no such details were specified in its own agreement with Cruz.
The rendered decision was formed from a bench trial in early September, and declared that NCP as a whole is not entitled to compensation from Cruz as a promoter. However, it was also ruled that NCP president Jesse Rodriguez is due quantum meruit for his role in securing the services of Matchroom for Cruz.
“[T]here was no mutual agreement on material terms between Cruz and NCP,” U.S. District Judge William H. Orrick stated in a ruling obtained by BoxingScene. “The NCP PA (promotional agreement) is not valid because it does not specify the essential terms and lacks consideration. The parties’ agreement was not that Rodriguez would promote Cruz, but that he would find a major promoter for Cruz. That purpose is not stated in the NCP PA.
“Nor is it stated how Rodriguez would be paid for that work, as opposed to bout promotion, which was never contemplated by Cruz but which is the focus of the NCP PA. Neither party seems to recognize the rights and obligations that flow from those essential facts. The NCP PA served its purpose as the prerequisite for Rodriguez to negotiate with major promoters. But Rodriguez had only promoted one fight in his career and Cruz did not choose him to promote his fights. The NCP PA would be exploitative otherwise.”
Cruz, 6-0 (3 KOs), initially filed the lawsuit in December 2023, shortly after his knockout win over Jovanni Straffon on a Devin Haney-Regis Prograis DAZN pay-per-view event promoted by Matchroom.
An eight-count complaint was filed against NCP as a whole and Rodriguez individually.
Chief among the complaints cited were Violation of the Ali Act and Breach of Contract. Cruz sought damages in excess of $100,000, the amount that was allegedly pocketed by NCP who claimed to have been due 25 percent of Cruz’s fight purses per an oral agreement.
It was confirmed during the review of this case that no such language appeared in the now nullified agreement between Cruz and NCP.
Ironically, NCP would have been found in violation of the Ali Act had the court validated its 2023 agreement with Cruz. The company avoided that violation given the ruling that NCP was not, in fact, Cruz’s promoter, but rather an intermediary in helping Cruz sign with Matchroom.
Cruz and his team first met with Rodriguez in late 2022, when he defected from Cuba. It was later alleged by Cruz’s side that they were signed by NCP under the false pretense that they would promote his bouts.
This distinction was crucial in the financial split of Cruz’s contracted purses with Matchroom, who formally signed the boxer in May 2023, nearly two years after he captured a Gold medal during the delayed Tokyo Olympics.
Matchroom has served as the promoter of record for all of Cruz’s six pro bouts. Yet, NCP felt it deserved a 25 percent cut of the estimated $500,000 generated between Cruz’s signing bonus an first two bouts under the agreement.
Rodriguez contended that an oral agreement reached with Cruz’s managers entitled his company a right to the boxers payments from Matchroom. Cruz denied that any such agreement existed, and his legal team successfully argued that the written contracts “speak for themselves.”
Testimony revealed that Rodriguez elected to not include such language in NCP’s agreement with Cruz “to provide flexibility.” According to Cruz and his team, Rodriguez specified that NCP’s earnings would come directly from the promoter, and not from the boxer’s purses.
Both sides agreed that Rodriguez was a necessary intermediary, given the general lack of boxing business sense in negotiating with major promoters. It was also agreed that Rodriguez was successful in securing the services of Matchroom, for which a forthcoming trial will determine what he is owed in damages.
A hearing was set for December 2 to determine next steps in that process.
However, such a role limited Rodriguez’s role, since NCP did not officially promote any of Cruz’s bouts – in fact, they are only on record to have promoted one event which operated at a loss.
Instead, NCP brought Cruz to Matchroom, all of whom entered a promotional agreement that included a signing bonus. The agreement “permitted Cruz’s payments from Matchroom to first be paid to NCP, which was then expected to distribute the funds to Cruz. The Boxing Promotional Agreement did not allow NCP to keep or divert any of the funds paid for the benefit of Cruz.”
A red flag was raised by Cruz’s side first after only receiving a portion of his promised $250,000 signing bonus. The issue resurfaced when the boxer was not paid in full for his July 2023 pro debut. Cruz and his team then realized NCP was withholding what it felt was its deserved share of his fight purse.
A proactive approach was taken by Cruz leading into his December 2023 bout with Straffon. He provided Matchroom and NCP with payment instructions, none of which included any stipulations for NCP to withhold any portion of his purse.
NCP countered with the claim that Cruz “was not a party to the Boxing Promotional Agreement, that Cruz was not legally entitled to communicate with Matchroom and that Matchroom was required to pay Cruz’s purse to NCP.”
According to the complaint, Matchroom functionally split the baby—the company paid half of the purse directly to Cruz. Matchroom paid the remaining 50 percent to NCP, who reportedly retained half of that amount (25 percent of Cruz’s total purse) despite instructions to the contrary from Cruz.
In this capacity, it is argued by Cruz that NCP has attempted to act as a manager and not co-promoter.
“NCP is claiming the right to 25% of the money Matchroom pays Cruz for his signing bonuses and purses,” noted Gregory Smith, Cruz’s attorney in the originally filed complaint. “Thus, NCP meets the statutory definition of “manager” under Cal. Bus. & Prof. Code § 18628. NCP is not a licensed boxing manager per California law, rendering the Boxing Promotional Agreement illegal and void as to NCP.
“Further, Cruz is entitled to a judicial determination that he is free of any promotional ties and contractual obligations to NCP that might have existed under the Boxing Promotional Agreement.”
Wednesday’s ruling provided that very outcome.
Cruz can now breathe a sigh of relief ahead of his next fight, his biggest opportunity yet.
The undefeated Cuban enters his first major title defense when he challenges IBF 135lbs beltholder Raymond Muratalla. Their bout is set for January 24 at Fontainebleau Las Vegas. Cruz became the IBF mandatory challenger after a sixth round knockout of Hironori Mishiro on June 14 in New York City.
Matchroom Boxing obtained promotional rights when it outbid Top Rank, Muratalla’s promoter, during an October 23 purse bid hearing.
