Quick Summary of GBP and Top Rank’s Legal Challenge of Haymon
A lawsuit was launched by GBP in May and Top Rank this week, against Al Haymon and his investors (Waddell & Reed).
How much is Haymon being sued for?
GBP is claiming $300 million in damages.
Top Rank is claiming $100 million in damages.
What has Haymon done wrong in legal terms?
Haymon has apparently violated the Ali act. He has been using sham promoters and fraudulent methods to over book venues, which have stopped competitors from being able to book the venues. It seems he has violated this in a few areas, i'm no legal expert but they have a case here.
Also worth noting Chavez Jr 'the genius' put up a cheque after his fight which showed Haymon was paying him. This is a key piece of evidence used by Top Rank.
Where is the problem with the GBP and Top Rank lawsuits?
Well the Ali act was introduced to protect fighters. Now what Haymon has achieved has been nothing short of remarkable. Despite dominating the entire sport at the moment, he hasn’t gone the UFC route. Haymon has made sure fighters have earnt record pay days and he has made sure fighters are showcased in front of record audiences.
Why have GBP and Top Rank been unable to achieve what Haymon has so far?
Really, they have themselves to blame. GBP and Top Rank tried to buy television space as soon as Haymon was buying time on these networks and they have been unable to match it. Top Rank and GBP have been tight asses and they have lacked innovation. Haymon has brought innovation and he has taken a huge punt, getting fighters record purses and making sure they are fighting on major channels. It’s also important to note that Haymon is actually running at a loss at the moment for his new PBC series.
Haymon has clearly violated technicalities throughout the Ali act. However the Ali act was designed to protect fighters. Haymon has essentially made a mockery of the act. Despite clearly violating the terms, the fighters have actually been the main beneficiary of this. So despite the Ali Act initially protecting the fighters, it could lead to problems for Haymon who has looked after all his fighters very well.
What will be the outcome?
Well for one, this will be a 3-4-5 year lawsuit. I doubt Arum will even be around towards the end of this. Who knows where GBP will be then, with Oscar De La Hoya’s track record that company could be anywhere.
It’s obvious the Ali act needs to be overhauled. It’s protecting fighters interests, however any prosecution or lawsuit against Haymon isn’t in the interest of fighters.
Stopping a guy and his investors for producing record purses and record US nationwide audiences, ISN’T protecting the interests of fighters.
Boxing and Boxing Fans.