By Mark Vester

The breakdown of Juan Diaz's bout with Michael Katsidis (23-0, 20KOs) may cost him the WBO lightweight title. Diaz (33-0, 17KOs) was scheduled to face Katsidis in the main event of an HBO televised event on February 9, but the fight fell apart after promoter Don King issued a letter to HBO without an outline of his legal position if the bout went forward.

A few weeks ago, Oscar De La Hoya won the promotional rights to Diaz-Katsidis with a winning purse bid of $1.5 million. Diaz's promoter Don King, who was overseas at the time and not attend the purse bid, cited a clause in Diaz's contract which prevents him from fighting for another promoter pursuant to a winning purse bid.

King is now trying to match Diaz against his WBA mandatory, Nate Campbell, on the March 8 undercard to Oleg Maskaev-Samuel Peter in Cancun, Mexico. Sources say Campbell has already signed off on the contract, Diaz is not as willing. He's holding back from signing off on the contract because the amount of money being offered is below his contract minimum per fight. Diaz's contract with King will expire on March 31 and he owes the promoter one last fight. 

Katsidis, who may end up facing former champion Joel Casamayor, also in March, may also get an upgrade on his title as the WBO's "iterim" lightweight champion.

Brendon Smith, Katsidis' trainer and manager, expects the WBO to strip Diaz and make Katsidis the full lightweight champion, and he told media outlet AAP that he's initiated legal action to make sure his fighter ends up with the full WBO title. Smith says Diaz should do the right thing and vacate his title, instead of waiting for the WBO to strip him. Diaz also holds the IBF's version of the lightweight title.

"The most honorable thing would be for him (Diaz) to relinquish the title before the WBO strips him," Smith said. "I'm sure you can expect to see Michael fight by March at the latest and I believe it will be a WBO world title defence, thought I can't fully confirm that yet. He's handling it very well, this is boxing, a lot of things happen outside the ring, but there is disappointment."

Send News Tips and Comments To Mark Vester @ boxingscene@hotmail.com