A federal lawsuit in California pits a boxing manager against his client and his new advisory group. This case involves former U.S. Olympian and current IBF Super Featherweight Titel holder JoJo Diaz and his former manager Moses Heredia.
Diaz sued Heredia in state court in California. In turn, a few weeks after the lawsuit this past November, Heredia filed a lawsuit against Diaz’s new advisors, MTK Global, the owner of the group Daniel Kinahan and even Diaz’s promoters, Golden Boy Boxing.
First, the lawsuit filed in San Bernardino state court filed by Diaz claims that Heredia took advantage of him and his career. Diaz claims that Ralph Heredia had his half-brother Moses fill out the paperwork so that he could be his boxing manager. The reason being was that he had been convicted of a crime and could not be his licensed manager.
The claims in the lawsuit include a violation of the Muhammad Ali Boxing Reform Act. Diaz alleges that, “Heredia used Diaz as subterfuge for obtaining the benefits at Diaz’s expense, as Diaz did not receive the full benefits of his relationship with Golden Boy as a result of the personal benefits given by Golden Boy to Heredia.”
Ralph Heredia was allegedly indicted in connection with an extortion and threatened murder plot against an LA Rams football player.
There are three primary instances listed in the Complaint which allege that Heredia, as his ‘manager,’ took advantage of his position. Diaz claimed that Heredia used the boxer’s name to get comp tickets from Golden Boy to a Canelo Alvarez-GGG fight in Vegas.
One of the reasons that Diaz was upset with Heredia is that he claimed that he “was more concerned with his relationship with Golden Boy” than he was for the fighter’s future. He alleged that he would not be looking out for his best interests when it came to negotiating with Golden Boy.
In addition, Diaz alleges he entered into an ‘auto loan’ with Heredia only to have the auto repossessed.
He also claims that at some point, Heredia raised his compensation percentage on their manager contract from 18% to 20% without his knowledge. Diaz requests compensatory and punitive damages as a result of the claims. He also requests an accounting of “all unsettled accounts between himself and Heredia.
In response to this, Moses Heredia (not Ralph) filed a lawsuit against MTK Global, Daniel Kinahan and Golden Boy Promotions in federal court in California. One would surmise that it was in response to the lawsuit filed by Diaz. Of note, Heredia does not file a lawsuit against Diaz for Breach of Contract.
The lawsuit includes a claim of civil Racketeering claims on the part of MTK Global. He notes in the lawsuit the organized crime ties of Kinahan and how it has funded the management company.
Heredia argues that MTK Global attempted to drive a wedge between himself and Diaz noting that they gave the boxer $100,000 in order to become his advisor. They then told Diaz to stop talking to Heredia. Heredia also cites that the law firm that filed the lawsuit against him in the lawsuit.
The lawsuit by Heredia also includes a claim against Golden Boy Boxing but relates to boxer Luis Feliciano alleging that a representative of Golden Boy contacted Feliciano without permission.
Heredia is claiming compensatory, punitive and treble (triple) damages as a result of the alleged conduct on the part of MTK Global and Golden Boy Boxing.
Payout Perspective:
This lawsuit has all of the ills of the combat sports industry. Namely, former criminals, current criminals, organized crime and allegations of crime. The allegations that Diaz’s manager was taking advantage of his boxer is not a new story. Neither is the fact that the manager may have been a former criminal. Also, the fact that a new competitor with ties to organized crime looking to make inroads in recruiting a boxer away from his manager is something that happens in multiple sports. Based on the pleading, I’m not sure how certain the civil RICO claims are against MTK Global. Moreover, the manager-contract allegations seem like a game of hearsay but it will come out in the discovery. MPO will continue to follow.
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