Hyde: Rigo Destroyed Own Career..."Turned Down Many Multi-Million Dollar Offers"

[OnePunch]

So instead of a percentage of purse, it would basically be a separate agreement with the promoter where they get paid x amount?

Sounds like they could get away with even more in these situations.

Correct, because most times the fighter never knows the amount the promoter is getting, only the amount on the actual bout contract.

And Ali Act enforcement of provision of services agreements is non-existant.....

[khal-d]

OnePunch why don't you tell us how much promoter's make from a boxer's purse? More thn 20 "morons" have said the same thing, including boxing promoters and managers.

He did. Basically the Ali act prohibits a fighter from taking a percentage of purse unless they lose a purse bid.

So if I have Fighter A and I promote him, to put him on another promoter's card, the promoter works out two deals through me; my "services" and the fighter's purse.

As you can imagine it sounds like a lot of fighters can get badly ripped off unless they are entitled to know what the promoter has received for "services."

[khal-d]

Correct, because most times the fighter never knows the amount the promoter is getting, only the amount on the actual bout contract.

And Ali Act enforcement of provision of services agreements is non-existant.....

Ouch... Thanks for the insight on this. Hope it's not as bad out there as I think it could get with some of these promoters and the provision of services.

[OnePunch]

OnePunch why don't you tell us how much promoter's make from a boxer's purse? More thn 20 "morons" have said the same thing, including boxing promoters and managers.

with the exception of purse-bid scenarios, the promoter is not supposed to make anything from the fighters purse. Zero. Nada. Zip

There are some exceptions regarding use of training camp facilities, things like that, but typically that will be spelled out in the contract. Don King tried that on us, where his contract had a provision that we had to use his training camp in Ohio, at a fee "to be determined". Obviously I informed him that provision was a deal breaker and it had to go.

Promoters profit comes outside the purse. This is one reason alot of fights dont happen. If as a promoter I dont think I can cover everyones demands, and still make a profit (or at least break even), Im not doing the show.

[OnePunch]

Ouch... Thanks for the insight on this. Hope it's not as bad out there as I think it could get with some of these promoters and the provision of services.

well typically this is where the manager comes in, to represent the fighters interests. People forget that the promoter has no fiduciary duty to the fighter whatsoever. The promoters job is to get the fighter to accept as little money as possible. Its the manager who has the fiduciary duty, and should know what certain fights are worth, and not allow the fighter to be shortchanged.

And this has been my biggest criticism of Haymons operation. As a manager, it is IMPOSSIBLE to fairly represent both sides of a fight. They are opposing interests. Everything negotiated for fighter A (purse, weight, gloves, venue, etc) comes at the expense of fighter B. You cannot fullfill a fiduciary duty to both sides.

Checks and balances.......

[-PBP-]

He did. Basically the Ali act prohibits a fighter from taking a percentage of purse unless they lose a purse bid.

So if I have Fighter A and I promote him, to put him on another promoter's card, the promoter works out two deals through me; my "services" and the fighter's purse.

As you can imagine it sounds like a lot of fighters can get badly ripped off unless they are entitled to know what the promoter has received for "services."

They should disclose if I read this correctly

(b) Disclosures to the boxer A promoter shall not be entitled to receive any compensation directly or indirectly in connection with a boxing match until it provides to the boxer it promotes—
(1) the amounts of any compensation or consideration that a promoter has contracted to receive from such match;
(2) all fees, charges, and expenses that will be assessed by or through the promoter on the boxer pertaining to the event, including any portion of the boxer’s purse that the promoter will receive, and training expenses; and
(3) any reduction in a boxer’s purse contrary to a previous agreement between the promoter and the boxer or a purse bid held for the event.


That was part of Mikey Garcia's lawsuit. This information wasn't disclosed so he was unable to negotiate a fair rate of competition for himself because he wasn't given financial information from his fights.

Like I said earlier, if the fighter doesn't know the bottom line profit, how do you know if the purse amounts are fair?

[-PBP-]

well typically this is where the manager comes in, to represent the fighters interests. People forget that the promoter has no fiduciary duty to the fighter whatsoever. The promoters job is to get the fighter to accept as little money as possible. Its the manager who has the fiduciary duty, and should know what certain fights are worth, and not allow the fighter to be shortchanged.

And this has been my biggest criticism of Haymons operation. As a manager, it is IMPOSSIBLE to fairly represent both sides of a fight. They are opposing interests. Everything negotiated for fighter A (purse, weight, gloves, venue, etc) comes at the expense of fighter B. You cannot fullfill a fiduciary duty to both sides.

Checks and balances.......

Haymon fighters have their own managers.

Lara/Guerrero - DeCubas
Porter/Garcia - their fathers

Also Wilder, Broner, Maidana, Spence and others who I can't remember their names.

[OnePunch]

They should disclose if I read this correctly

(b) Disclosures to the boxer A promoter shall not be entitled to receive any compensation directly or indirectly in connection with a boxing match until it provides to the boxer it promotes—
(1) the amounts of any compensation or consideration that a promoter has contracted to receive from such match;
(2) all fees, charges, and expenses that will be assessed by or through the promoter on the boxer pertaining to the event, including any portion of the boxer’s purse that the promoter will receive, and training expenses; and
(3) any reduction in a boxer’s purse contrary to a previous agreement between the promoter and the boxer or a purse bid held for the event.


That was part of Mikey Garcia's lawsuit. This information wasn't disclosed so he was unable to negotiate a fair rate of competition for himself because he wasn't given financial information from his fights.

Like I said earlier, if the fighter doesn't know the bottom line profit, how do you know if the purse amounts are fair?

the biggest problem with the Ali Act is that the disclosures do not have to be made in advance. Typically you get the Ali disclosure when you sign for your purse check. It is not helpful in any way, because it comes LONG after you agreed to the purse.

Truthfully even though I always followed the law, I find the revenue disclosure portion of the Ali Act to really be absurd. A competent manager knows what a fight is worth. And if fighter and manager agree on a purse, then what difference does it make how much the promoter got from the network? Are people no longer allowed to make a profit?

[OnePunch]

Haymon fighters have their own managers.

Lara/Guerrero - DeCubas
Porter/Garcia - their fathers

Also Wilder, Broner, Maidana, Spence and others who I can't remember their names.

lol, do you really believe that?

Yeah, and some of Don Kings fighters used to have Carl King as their manager. Same thing.........

Also, have you ever read a Haymon contract? He decides EVERYTHING. What role would an additional "manager" have? He wouldnt even have the authority to order lunch

[khal-d]

They should disclose if I read this correctly

(b) Disclosures to the boxer A promoter shall not be entitled to receive any compensation directly or indirectly in connection with a boxing match until it provides to the boxer it promotes—
(1) the amounts of any compensation or consideration that a promoter has contracted to receive from such match;
(2) all fees, charges, and expenses that will be assessed by or through the promoter on the boxer pertaining to the event, including any portion of the boxer’s purse that the promoter will receive, and training expenses; and
(3) any reduction in a boxer’s purse contrary to a previous agreement between the promoter and the boxer or a purse bid held for the event.


That was part of Mikey Garcia's lawsuit. This information wasn't disclosed so he was unable to negotiate a fair rate of competition for himself because he wasn't given financial information from his fights.

Like I said earlier, if the fighter doesn't know the bottom line profit, how do you know if the purse amounts are fair?

OnePunch, would a promoter signing his fighter to another card need to disclose? Even when fighter is getting the cheque?