Al Haymon may not speak to the media but he's certainly going to have some explaining to do in federal court. Today Top Rank announced that they have filed a $100M lawsuit against Al Haymon and his investors while also seeking an injunction to halt his alleged 'predatory practices.' The lawsuit, filed in the U.S. District Court in Los Angeles, is 50-pages long, detailing quite a number of grievances against Haymon and his new PBC series. In short, the lawsuit outlines the number of steps Haymon has taken to game the system and get around the separation between the function of manager and promoter, which is prohibited by the Ali Act.
"If left unabated, this conspiracy threatens to fatally cripple competition in [boxing], thereby causing substantial and irreversible harm to boxers, legitimate promoters, and consumers," Top Rank attorney Daniel Petrocelli wrote in the lawsuit.
Haymon's PBC operation is primarily funded by investment firm Waddell & Reed, which has allegedly provided Haymon with $400M in backing for his Premier Boxing Champions series. With this money, Haymon has been able to secure time buys on various networks to broadcast his events. The lawsuit suggests that Haymon's operation could cause him to lose $200M in just two years time, but by then his loss leader strategy will have effectively cut out all competition.
"Using one's power to box out competitors is a classic monopolistic tactic," Petrocelli wrote in the lawsuit.
"Once Haymon obtains monopoly power in the market for promoting professional boxing matches, he will recoup the losses by charging exorbitant prices to broadcasters, sponsors, and consumers. Haymon and Waddell & Reed will be the sole competitor."
On top of the venue blocking practices that has previously come out, Top Rank has also characterized the promoters on record for PBC events as being a 'sham' and include a photo of a check written by Haymon Sports to Julio Cesar Chavez, Jr. in the amount of $1.75M for his last bout in April to support their claim. Chavez Jr. posted a photo of the check to Instagram which noted 'purse' in the memo line.
"The transaction could hardly be more explicit ... paying the purse is a classic promoter responsibility, not the job of a true manager," Petrocelli wrote in the lawsuit.
Whoops! Way to throw your benefactor under the bus Julio! Seriously though, this is all shaping up to be more drama than a Tyler Perry play - and you can bet your bottom dollar that all involved parties will be fighting it out tooth and nail over this.