With the announcement of Vitaly Klitschko vacating the World Boxing Council’s heavyweight championship belt to focus on his homeland, it leaves open the issue of another boxer’s future Bermane Stiverne.
Stiverne, a heavyweight contender, has sued Don King and his promotional company under the Muhammad Ali Act contending violations of the Act by Don King Productions (“DKP”) and other associated entities. Specifically, Stiverne contends that he was forced to sign an exclusive promotional agreement with DKP in order to receive fights.
Last week, the Court in the Southern District of New York denied Stiverne’s request for a Preliminary Injunction and Temporary Restraining Order. The requested relief asked that the Court enter an Order to request DKP among other defendants “not to interfere in any way, directly or indirectly, with the ability of plaintiff…to enter into any bout agreement with any other boxer, including for a heavyweight championship bout.” Stiverne is considered the number one contender for the WBC’s heavyweight championship belt. According to Court documents, Stiverne’s manager was working with the Klitschko management team to negotiate and sign a bout agreement. Stiverne’s concern was that King will intercede.
The Preliminary Injunction came as a result of alleged threats made by King that “he would do everything in his power to prevent Stiverne from getting any more boxing bouts whatsoever.”
In addition to Stiverne’s Motion for Preliminary Injunction and Temporary Restraining Order, the Court further ordered that the parties are instructed to submit letters by Friday, December 20, 2013 updating the Court on the status after a mediation session before the WBC. The mediation session was to negotiate a fight contract between Stiverne and Klitschko. Since Klitschko has given up his title, there will be no meeting and the Court must now address what to do next in Stiverne’s lawsuit.
DKP has filed its Answer and Counterclaims to Stiverne’s lawsuit requesting declaratory relief from the Court to invoke the purported promotional contract between Stiverne and DKP. In addition, DKP claims Stiverne has breached its contract and tortuously interfered with DKP’s rights under the 2011 Promotional Agreement.
Payout Perspective:
Reviewing Stiverne’s request for the Preliminary Injunction and Temporary Restraining Order, it seemed like a longshot that the Court would grant his motion. With the announcement that Klitschko has given up his belt, it puts Stiverne’s career options up in the air. But, the lawsuit brings up the question of the bite of the Ali Act.
Stiverne must now address Counterclaims for breach of contract and tortious interference with a contract. These claims coincide with the promotional contract that Stiverne signed but the fighter claims was done under pressure. There are few lawsuits that have been brought under the Ali Act and even fewer where a fighter prevails (I actually count none) under the Act. So, while there are portions of the Act which allow for private rights of action, from a practical standpoint, most boxers are not in the position to pay lawyers to litigate these claims. Even then, in situations like this where a promotional contract is disputed, there is the threat of a countersuit from the promoter for breach of contract. Thus, the fighter is put in a situation where he could find himself defending a lawsuit.
While the purpose of the Ali Act has good intentions, one must wonder if it should be amended to allow for better ways to resolve disputes short of costly litigation.
Don King wins every time, teflon.