Another major boxing match is about to be canceled after Paradigm Sports Management (best known for representing Conor McGregor) filed an injunction to keep Manny Pacquiao from fighting Errol Spence on August 21.
Paradigm and Pacquiao have been fighting each other legally for months, with Paradigm accusing Manny of accepting and then jumping on a $ 3.3 million advance payment under a management agreement. They also complained that they had organized a big money fight against Mikey Garcia for Pacquiao in Dubai, only to have Pacquiao announce that he would fight Errol Spence instead.
From Paradigm’s injunction filed on July 30th: “On May 21st, 2021, after orally accepting Paradigm’s bid to fight, Pacquiao instead tweeted that he was taking part in the Battle of Spence, which was never in violation with Paradigm Pacquiaos Express discussed contractual obligations. Pacquiao’s blatant violation of Paradigm’s exclusivity rights resulted in Paradigm suffering monetary damages consisting of the proceeds it would have earned from the Pacquiao-Garcia battle and the $ 3.3 million advance Pacquiao withheld Has; as well as irreparable damage to its reputation. “
“Paradigm’s reputation in the professional boxing world and beyond has been marred by Pacquiao’s violations. If the battle for Spence continues without Paradigm’s involvement, his inability to enforce his rights will be public knowledge. Without consequences for Pacquiao’s violation of Paradigm’s exclusive rights, it will not be able to rehabilitate its boxing reputation and lose many new business opportunities. “
Paradigm is urging the court to either stop the fight or force Pacquiao to put over $ 8 million in escrow to cover the potential damage Paradigm is asking the boxer to do. The Pacquiao team filed a strong counterclaim in response, which we can see in part thanks to WorldBoxingNews.
“PSM is frivolously trying to order this fight based on a series of fraudulent promises, contract and fiduciary violations and dubious backroom deals with one of Pacquiao’s trusted advisors without Pacquiao’s knowledge or consent,” it reads. “To say that PSM improperly tried to take advantage of Pacquiao is an understatement.”
“Due to the above fraud, deception and cover-up, PSM Pacquiao signed and concluded a (revised) management agreement with PSM in October 2020,” the counterclaim said. “Shortly afterwards, however, PSM informed Pacquiao that the promised fight with McGregor would not take place. PSM also informed Pacquiao that there were no advertising contracts, contrary to what it had promised him. “
“Paradigm did nothing for Pacquiao. PSM cheated on him and selfishly tried to exploit Pacquiao’s name to expand his business to include professional boxers as well as MMA fighters. “
In the end, it depends on the wording of the management contract signed by Pacquiao. His team claims the contract recognizes a previous advertising agreement with TGB Promotions, the people behind the Spence fight. Paradigm obviously contradicts. How clear the language is in the various treaties will really determine whether this injunction is enforced. Everything else related to dubious backroom behavior and betrayal by agents needs to be resolved later in court.