Haymon files motion to dismiss Top Rank lawsuit

This past Monday attorneys for Al Haymon and other Haymon entities sued in the antitrust lawsuit brought by Top Rank in Los Angeles have filed a Motion to Dismiss the complaint in its entirety.  A hearing is set for October 5, 2015.

The Haymon Defendants (as they are identified in the moving papers) state that all of the antitrust claims should be dismissed and that the violations of the Muhammad Ali Act should be dismissed as well.

Notably, in response to Top Rank’s claim that Premier Boxing Champions strategy of purchasing time buys as a “loss leader” strategy to “tie out” other competitors is false.  Rather, it states the move as a “pro-competitive innovation” meant to promote interest in the sport with regularity and at minimal cost “with the intention of expanding the diminishing fan base for the sport,” according to its motion.

The attorneys for Haymon point to the lack of evidence from Top Rank reflecting the predatory nature of Haymon in which it foreclosed opportunities for Top Rank to promote or sign boxers or were financially damaged from its practices.

It also stated that Top Rank’s use of the Ali Act is incorrect as only boxers are entitled to use the federal law.

According to records obtained by the Sports Business Journal, PBC was backed by at least $448M from a $23B mutual fund managed by Waddell & Reed Financial.  Per the SBJ, in its latest SEC filings, as of June 30, 2015,  Haymon Media Group Holdings are down $155M from its initial cost of $448M in 2013.  It is believed that this is the part of the Waddell Fund that funds PBC.  One may assume that the losses are based on the investment in PBC.

(H/t: Bill King)

Payout Perspective:

MMA Payout will have a more detailed evaluation of the motion to dismiss in the coming days.  The motion was expected at the outset even with a similar lawsuit filed by Golden Boy.  One would assume that a similar motion is in the works for the Golden Boy lawsuit although there was an arbitration hearing on the matter in July to decide whether the arbitrator or a court would decide Golden Boy’s lawsuit.