Top Rank Boxing has sued Al Haymon and Waddell & Reed Financial in the U.S. District Court for the Central District of California in Los Angeles. Similar to the lawsuit filed by Golden Boy in May of this year, it claims that Haymon and his business holdings violate antitrust law, the Muhammad Ali Act and California state Unfair Competition law.
The lawsuit, provided by the Los Angeles Times, filed on July 1st claims that Haymon attempts to circumvent the above-mentioned laws through his Premier Boxing Champions promotion. Top Rank claims that Haymon and Waddell & Reed are seeking to “buy up and monopolize the entire vertical channel” of top fighters, “tying out” promoters, excluding promoters from major venues and using its “time buy” strategy as a “predatory ‘payola’ scheme.”
As stated in the Golden Boy lawsuit two months prior, the lawsuit identifies the scheme in which it claims that Haymon is using his market power in one business to take over a different business. Haymon has a deep stable of boxers that fight exclusively on PBC/Haymon promoted cards thus foreclosing out the fighter market as well as the promotion for these fighters.
In an update from the Golden Boy lawsuit, Top Rank identifies a June 2015 issue in which California state regulators identified Haymon reserving venues such as Staples Center and The Forum so that other promotions would not be able to hold events there. Per the LA Times, this was a reason why a fight between Lucas Matthysse and Ruslan Provodnikov was sent to a New York casino rather than a more attractive venue in Los Angeles.
Seeking to twist the dagger a little more, Top Rank picks up on Haymon’s music promoter background to accuse him of “payola.” This is based on brokering “time buys” with a host of networks to air PBC exclusively. Thus, the argument would be that other promoters are excluded from negotiating with those networks.
The lawsuit states that losses could exceed $200 million in PBC’s first two years in existence. And while PBC may operate in the red, its “loss leader” strategy allows Haymon to gain an unfair advantage in the promoter market.
The Complaint seeks $100 million in damages against Haymon, et al.
Payout Perspective:
“The enemy of my enemy is my friend,” is an ancient proverb that might prove true in federal court in Los Angeles as both Golden Boy and Top Rank are digging in its heels against Al Haymon. While it’s still too early to tell whether the two longtime adversaries will work together in its fight against Haymon, it will be an intriguing sidebar to this legal heavyweight battle. The allegations mirror one another and offer some interesting legal issues. One of interest to the boxing industry is Haymon’s alleged conflict of interest in serving as a “de facto” manager (although he’s labeled as an advisor) and promoter. This is something specifically addressed in the Ali Act as prohibited. MMA Payout will keep you updated.
Seems like a good idea for Top Rank
HAHAHAHAHAHAHAHAHA!!! What a mess this is turning into. All PBC has done is find a way to make everyone spend a lot of money and then lose it. This was a horrible idea from the outset and it has Armageddon written all over it!
Suit has no legs. Haha!
Theyre fighting over big money….worth fighting for….fighting for peanuts like the reebok deal is pathetic hahahahaha
Big money????? PBC has NO MONEY other than the investors money which they are receiving and flushing down the toilet. No TV contracts, no PPV’s, no revenue. HAHAHAHA!!!
Look AT Dorothy wet her pants. bahahhaha Boxing has huge money and mma well they have Kimbo hahahaha
Supposedly in violation of the Ali Act. This should be interesting, especially with two promotions now against Haymon.
Boxing has huge money?? They may have huge investor’s money…..that is going down the drain, but they don’t make money, they lose money usually, especially PBC which will destroy boxing.
MayPac… 4.4 million US only PPV Buys.
*Factored in for Bob Arum inflation* HAHAHAHA!!!
By the way, those are US/Canada buys and European ppvs are pennies on the dollar.
Baaaaaa boxing has the 2highest paid entertainers in the world. And D thinks that there is no money. Meanwhile the ufc and mma gross less then 10% of what boxing does. D is a mental midget who needs a step ladder to see and understand the workd. Sad! What a shit for brains its laughable.
Hahaha. Sal is a retard who literally manufactures delusions in his brain despite the reality that stats always prove him wrong. This mutant thinks the sky isn’t blue, 2+2 =5, the pope isn’t catholic, etc. He is a retarded nutjob loon.
Haymon is a scumbag. But then so is Arum. In this case I think Haymon is the bigger scumbag. He’s also in clear violation of the Ali act, no matter how he tries to whitewash it. And as far as I can tell, he’s losing money on his time buys. But I would love to see some financial data on that. Maybe the lawsuit will give us a peek.