clock menu more-arrow no yes

Filed under:

Shareholders walk away from Golden Boy

New, 33 comments

Oscar De La Hoya, upon request, had to buyout the two largest shareholders of Golden Boy.

Ethan Miller

We all knew the Richard Schaefer departure would have a lasting ripple effect on Golden Boy, and those ripples continue to be felt. At the request of Anschutz Entertainment Group and private investor Gabriel Brener, Oscar De La Hoya has repurchased their shares of Golden Boy, who owned a respective 20 and 12 percent stake in the company.

Sources state that the sale from the two largest shareholders, aside from De La Hoya himself, was prompted because they never received any return on their investment, with Golden Boy never having distributed any dividends to its shareholders. Being that AEG had invested millions into the company back in 2008, they were probably expecting a little something back by now.

"We have enjoyed a long and mutually beneficial partnership with Golden Boy Promotions. Earlier this quarter, Golden Boy Promotions re-purchased AEG's equity interest in the company that was originally acquired in May of 2008," Dan Beckerman, president and CEO of AEG, told ESPN.com. "We wish Oscar De La Hoya all the best and we look forward to continuing to host Golden Boy Promotions events in our venues in the years to come."

AEG also has ownership interest in several of the venues where Golden Boy routinely hosts their events, particularly the Staples Center in Los Angeles, as well as the StubHub Center in Carson, CA. But what I think this speaks more to is that business is often built on relationships, and when those relationships deteriorate, so too does the financial support. AEG, for instance, was mostly only involved in Golden Boy because of Richard Schaefer's close relationship with the CEO of AEG, Dan Beckerman. Naturally, once Schaefer left the company, it left a huge void in the business relationship. Though Oscar initially denied the stock repurchase, a Golden Boy spokesman, Stefan Friedman, has since confirmed it has taken place.

"With Oscar back at the helm we no longer have to contend with petty, ego-driven feuds that have costs fans the best fights for years, fans who couldn't care less about the financial composition of the company," Friedman said. "Simply put Golden Boy Promotions is firmly established as the No. 1 promoter in all of boxing and is stronger than ever."

Sounds like the typical public relations spin, right?! With the stock repurchase, De La Hoya now owns about 87 percent of the company's stock, with Richard Schaefer still owning 8 percent, and Bernard Hopkins the other 5 percent. Does all of this signal the impending demise of Golden Boy? Maybe, maybe not. But I'll tell you one thing, if Golden Boy were a publicly traded company, even Jordan Belfort might have a problem selling this as good news.