A Trial Scheduling Conference was held in the GGG Promotions, LLC vs. Golden Boy Promotions lawsuits which issued a trial date. The parties which have sued each other over the payouts of the second fight between GGG and Canelo have a trial date of November 13, 2023.
GGG first filed a lawsuit against Golden Boy this past spring claiming that it did not pay $1.375 million dollars as part of their agreement for the first fight. Golden Boy filed a cross-complaint this past Summer which claims that the drafting of the agreement between GGG and Golden Boy provided ambiguous language causing a difference in payments to GGG.
The parties agreed to a 55%-45% split of the net ticket sales revenue. Additionally, Golden Boy would receive $2.5 million on top of its 55% share.
According to the Cross-Complaint, “ suggesting that Golden Boy’s $2.5 million premium payment should be subtracted from net ticket sales revenues prior to applying the 55% – 45% split. This was not the intention or agreement of the parties, as they had expressly agreed that Golden Boy would receive 55% of the net ticket sales revenue, plus an additional $2.5 million.”
Thus, the ‘mistake’ in contract drafting. Drafted one way, it reads as though $2.5 million would be subtracted from Golden Boy’s share. Read another way, it should be Golden Boy to receive 55% of the revenue in addition to $2.5 million.
Golden Boy also argues that GGG and his company did not help promote the fight. Notably, it did not bring in television revenue for the Bout in territories controlled by GGG. In addition, it did not bring in the guaranteed sponsorship revenue for the Bout. In his Complaint, GGG argued that Golden Boy had taken the bulk of the sponsorship inventory for the bout which could have made it hard for GGG to sell more.
Payout Perspective:
The lawsuit may boil down to a simple case of ambiguous contract drafting. Golden Boy argues mutual mistake of the parties which excuses it from the alleged money GGG claims it owes him. But, Golden Boy must prove that the mistake was mutual. Thus, GGG was mistaken by the terms of the payout. Obviously, there are differing opinions here hence the lawsuit so we will see how this plays out. The lawsuit is even more interesting given the fact that GGG and Canelo are squaring off for the trilogy fight in 3 weeks.
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