Earlier this week, Floyd Mayweather filed a lawsuit against Showtime and former Showtime exec Stephen Espinoza claiming that they had defrauded the fighter out of millions of dollars he earned during his years fighting on the Showtime banner. The lawsuit filed over 11 years after his last fight poses some serious questions about its validity.
The first, of course, is the statute of limitations. The fact this lawsuits comes 11 years after his last fight tells us that any claim he might have had should have been litigated earlier. Moreover, one must question why all of a sudden this information is discovered at this point. In California, the statute of limitations for breach of contract or fiduciary duty is four years from the date of the alleged breach. In the alternative, its three years from the discovery of the breach.
Mayweather argues that since the transactions were hidden, the statute of limitations are tolled.
Obviously the big questions about this lawsuit include why were the non-parties not named in the lawsuit. The biggest name, Al Haymon, is the biggest omission. If we read the lawsuit, Haymon was the individual that represented Mayweather and brokered his boxing contracts. As a result, Haymon breached a fiduciary duty with Mayweather.
Mayweather is asking for compensatory damages he claims to be over $340 million which includes the principal amount of money diverted, lost investment profits or interest, and out-of-pocket costs for investigation and litigation. He’s also asking for punitive damages of an unspecified amount and a constructive trust of all funds in Defendants’ current possession.
Notably, Mayweather and his representatives have asked for records according to the lawsuit. They argue that Showtime gave them excuses as to why they did not have the requisite records.
Payout Perspective:
Why is this lawsuit happening now? Not sure, it could be that Mayweather has realized that he was being taken advantage of this whole time but wouldn’t he have done this sooner. Is Mayweather in need of money as a recent article suggests. Also, why wasn’t Al Haymon a part of the lawsuit. Mayweather’s claim is that he was defrauded by his manager and the network and its executive did nothing to stop it from happening. It seems dubious and an easy out for Showtime and Espinoza to argue. It was all Haymon’s fault. Also, why file in Los Angeles when Showtime is New York-based (as employee of Showtime, Espinoza’s personal resident would not necessarily matter) and Mayweather is a Las Vegas resident.
MPO will continue to follow
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