Mexican boxer Canelo Alvarez has launched legal action against his promoter Oscar De La Hoya and upstart streaming service Dazn over their alleged failure to deliver as promised on a $365 million contract.
Two years ago the four-weight world champion signed a contract with both parties which was touted as the richest in the history of the sport at the time.
However, the boxer now alleges both Dazn and De La Hoya’s Golden Boy Promotions have breached their respective contracts with the four-weight world champion, causing damages of at least $280 million.
Álvarez is also seeking to recover damages related to breach of fiduciary duty, breach of covenant of good faith and fair dealing, intentional interference with contract, negligent interference with contract and fraud, among other transgressions.
The lawsuit states Álvarez was guaranteed a payment of $365 million for his next 11 bouts under the terms of a record contract signed in October 2018, a $15 million purse for a December 2018 fight Rocky Fielding and $35 million for each of his 10 following bouts.
The $35 million guarantees for each fight were due to come out of the $40 million license fee paid by Dazn to Golden Boy for each event.
Canelo Alvarez claims he was paid the promised amounts for the Fielding bout and a pair of 2019 victories over Danny Jacobs and Sergey Kovalev, but accuses Dazn and Golden Boy of failing to propose adequate plans for his 2020 fights.
Dazn allegedly offered to pay Álvarez and Golden Boy a fraction of the contracted fee in cash and an unspecified amount of stock in the UK-based company in advance of a potential IPO, but the value of the offer was substantially less than Álvarez’s guarantee.
Following this Álvarez repeatedly asked Golden Boy Promotions to explore alternative broadcast options for a fall 2020 bout.
Golden Boy Promotions reported that it was talking to various broadcasters, it failed to put forth a single alternative plan by which it would pay Álvarez the $35 million it had promised him for each of his fights.
In a statement, the boxer said: “I’m the pound-for-pound No 1 in the world. I’m not scared of any opponent in the ring, and I’m not going to let failures of my broadcaster or promoters keep me out of the ring. I filed the lawsuit so I can get back to boxing and give my fans the show they deserve.”
Álvarez is now expected to go more than a year without a fight at the peak of his career.
Latest posts by Mohit Pasricha (see all)
- Former rugby star Mike Tindall sued for allegedly “passing off” popular podcast - December 3, 2020
- Wrexham A.F.C agree Hollywood takeover bid - December 2, 2020
- National League football clubs handed £10 million lifeline - October 28, 2020