Manny Pacquiao is at the centre of an acrimonious promotional dispute which has divided the boxing world. In 2006 the Filipino, for reasons which have never been fully disclosed, decided to sign separate, conflicting promotional contracts with both Top Rank and Golden Boy.
This prompted a deluge of litigation, which will inevitably have cost millions in legal fees with accusations ranging from racketeering to fraud to defamation. Ultimately most of these cases were settled out of court with both parties signing confidentiality clauses. But Pacquiao is now promoted by Top Rank and Golden Boy is entitled to a slice of the profits every time he fights.
Top Rank was founded by Bob Arum in 1973 and was the promotional vehicle behind some of the most significant fights of the past century, including the epic battle between Marvin Hagler and Tommy Hearns in 1985 and Muhammad Ali’s rematch with Joe Frazier in 1974.
Golden Boy is the new kid on boxing’s promotional block and was established in 2002 by Oscar De La Hoya, who had generated US$612 million in pay-per-view revenue during his own boxing career. The 10-time world champion was a Top Rank fighter but left to form his own company, making it almost inevitable that a fierce rivalry would ensue.
Golden Boy has successfully promoted the two most lucrative boxing events of all time. The pay-per- view price of De La Hoya’s 2007 fight with Floyd Mayweather was $55 and it was purchased by 2.4 million households, generating an estimated $136m in revenue, $87m of which ended up in the pockets of the two protagonists.
Six years later this record was smashed by the battle between Mayweather and Mexican fan favourite Saul Alvarez. The fight sold 2.2 million pay per views priced at an increased figure of $75 and brought in $150m in revenue, breaking all boxing records.
Boxers are not normally renowned for their ability to outwit opponents outside of the ring, but De La Hoya has succeeded in creating a company which has grown to be one of the two main powerhouses in the sport and a direct competitor to Top Rank, whose shows he famously used to fight on.
Despite this rivalry the two companies have promoted some cards together, including Pacquiao’s fights with De La Hoya and Ricky Hatton, but the relationship between them appears to have now completely broken down, turning the boxing world into a de facto duopoly with Top Rank on one side and Golden Boy on the other.
It is not only the top fighters who have had to pick a side in this ongoing dispute. The American broadcast giant HBO recently announced it would be boycotting Golden Boy after Mayweather, whose fights are co promoted by De La Hoya, defected to the rival network Showtime.
According to reliable reports HBO had a boxing budget of $35m in 2012, significantly less that the $100m which the network had invested in the sport at the turn of the century. The same year Showtime supposedly increased its equivalent funding to $28m, closing the gap in expenditure between the two broadcasting rivals.
Mayweather’s nine pay-per-view fights on HBO had generated 9.6 million buys and $543m in revenue and the network’s response to losing its most marketable and lucrative star was to completely sever ties with Golden Boy, who are working hand in hand with Showtime.
Prizing HBO’s biggest boxing asset away came at an unprecedented price. In return for broadcast rights to what will surely be Mayweather’s last six fights, Showtime agreed to the richest individual athlete deal in all of sports, with the boxer reportedly guaranteed to make a minimum of $200m.
The feud has divided broadcasters and promoters, but opinion is divided as to whether it is necessarily bad for the sport. The major disadvantage is that at present there is no way a fighter in the Golden Boy stable would be able to share a ring with a Top Rank signed opponent, or vice versa, meaning that a matchup between Pacquiao and Mayweather is a complete non-starter.
Some commentators have suggested that such a fierce rivalry could benefit fans by improving the calibre of cards on offer as Top Rank and Golden Boy compete to put on the best possible fights. Perhaps one day the rift will be repaired but for the time being at least it appears Pacquiao’s act of contractual duplicity has helped to place these promotional rivals at permanent loggerheads.
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