ESPN reports that Golden Boy Promotions has requested arbitration against former CEO Richard Schaefer. According to the report, De la Hoya and Golden Boy are requesting $50 million in damages from Schaefer although no allegations have been reported as to the claim.
The case is being sent to private arbitration per the terms of Schaefer’s employment agreement with Golden Boy. It likely had a clause that if there was a disagreement, in lieu of filing a lawsuit, the parties would agree to go to arbitration which is theoretically faster and less expensive. Thus, no lawsuit and it is unlikely that the general public will not know much of the evidence and testimony unless it is leaked.
Payout Perspective:
While we may not know the claims against Schaefer, the speculation that Schaefer and Al Haymon may go into business together may be one of the claims Golden Boy is making. Golden Boy might claim that Schaefer breached his fiduciary duty as CEO by not acting in the company’s best interests. The recent Main Events lawsuit filed against Al Haymon paints the picture that Schaefer and Haymon have worked together (more on this lawsuit in the coming days). The legal action is not surprising considering the public departure of Schaefer and other staff as well as Floyd Mayweather.
I’ve said this before but it bears repeating – the day Al Haymon and Richard Schaefer leave the sport, the better off the sport will be.
And you can add Don King and Bob Arum to that list.
Good to see Schaefer getting questioned
Don King and that asshole Arum like them or hate them have done more for Boxing then almost any 2 men in history. Boxing is a dirty dirty sport if you dont know that going in shame on you.