Golden Boy, Top Rank Prepare For Major Legal Battle
By Lem Satterfield
The two largest boxing promoters in the United States are once again preparing for battle in a legal ring. On Tuesday, Golden Boy Promotions filed a lawsuit in the U.S. District Court of Nevada against Top Rank Promotions, Top Rank CEO, Bob Arum, and Top Rank CFO David Lopez, accusing the duo of racketeering and fraud and seeking damages in the range of $3 to $5 million plus attorneys fees related to money generated from three Manny Pacquiao fights.
In accordance with a settlement between the two companies in 2007, Golden Boy owns a percentage of Pacquiao's promotional contract. In the legal papers, Golden Boy claims their company is owed millions of dollars from Pacquiao's 2008 lightweight title bout against David Diaz, his 2009 welterweight title bout against Miguel Cotto and his March welterweight title defense against Joshua Clottey. Golden Boy claims further, that Top Rank has often failed to report revenue from Pacquiao's fights and falsely inflated expenses to avoid paying their company the agreed upon percentage from their 2007 settlement.
Pacquiao had at one point signed promotional contracts with both companies in late 2006, but eventually stuck with Top Rank after the settlement. Under the grounds of the settlement, mediated by retired federal judge, Daniel Weinstein, Top Rank retained Pacquiao's promotional rights with Golden Boy due to receive a percentage of Top Rank's profits each time he fought.
Top Rank's attorney, Dan Petrocelli, was furious. He called the case "groundless," and, "a cheap publicity stunt," adding that the companies were sworn to bring any disputes before Weinstein for swift, "non-public, binding and and non-appealable" resolution.
"The case is groundless, and there is no basis for this at all. Beyond that, there is no right to file this case in any public court proceedings. Golden Boy had specifically contracted, under the grounds of the settlement, that any disputes with Top Rank had to be filed in arbitration, and in quick and efficient and confidential proceedings," said Petrocelli.
"Part of the settlment stated that if there were any disputes, that they have to submit those disputes to Judge Weinstein, and that those matters would be settled by him. They [Golden Boy] defied their legal obligation to pursue any disputes that they have in arbitration by publicly filing this suit."
"In my view, this was a cheap, publicity stunt. If they don't withdraw it, we will ask the court to order it into arbritration pursuant to the parties' agreement that every and all disputes that they have on the subject of their 2007 settlement has to be arbitrated before Judge Weinstein."
Judd Burstein, attorney for Golden Boy Promotions, was confident in the strength of his client's case.
"I'm not going to waste my time litigating in the media," said Burstein. "In my experience, virulent outrage is the traditional response of the guilty persons."
Lem Satterfield is the news editor for BoxingScene.com and the boxing editor for AOL FanHouse. To read more from Lem Satterfield, go to AOL FanHouse by Clicking Here.