Canelo Alvarez Sues Golden Boy and DAZN for Breach of Contract

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By Arne K. Lang

In a story first broken by Mike Coppinger of the Athletic, Saul “Canelo” Alvarez -- boxing’s biggest draw and the consensus #1 pound-for-pound fighter in the world -- has filed a lawsuit against the international streaming service DAZN and his promoter Golden Boy seeking $280 million in damages plus dissolution of his contracts, freeing him to sell his services to the highest bidder.

Alvarez hasn’t fought this year. In 2019, the Mexican superstar defeated Daniel Jacobs to claim three of the four meaningful pieces of the world middleweight title and then moved up two weight classes to meet Sergey Kovalev, defeating him by knockout to win a world title in a fourth weight division. For this achievement, he was named Fighter of the Year by this web site and by several other entities.

Alvarez’s deal with DAZN was formally announced on Oct. 17, 2018, at a press conference in New York at Madison Square Garden. The 11-fight deal, which was announced two weeks after HBO left boxing after 40 years, was the richest in sports history, reportedly paying Canelo $365 million over the life of the contract. Golden Boy would be the middleman, paying Canelo from the $40 million promised for each show on which he appeared.

Canelo has fought three fights for DAZN, opposing Rocky Fielding, Jacobs, and Kovalev. DAZN also signed Gennadiy Golovkin on the assumption that he and Canelo would meet sometime this year to complete their trilogy. But Canelo-GGG remains in limbo. Golovkin’s next bout will reportedly come against Poland’s obscure Kamil Szeremeta. Golovkin will be defending his IBF middleweight title. As yet there is no ironclad date for that match.

Canelo Alvarez’s next fight hasn’t been firmed-up; not even the opponent. The names that have been bandied about are Billy Joe Saunders, Callum Smith, and Avni Yildirim. All three are considered easy outs for the Mexican superstar (this reporter doesn’t consider Smith a soft touch, but that’s a story for another day).

DAZN, which is available in 11 countries and offers a range of different sports to its subscribers, is backed by Odessa-born British-American businessman Len Blavatnik, one of the world’s richest men. It’s no secret the company has been bleeding money, a victim of the global pandemic. But before the pandemic hit, the company was faulted for mismanagement. “People who know next-to-nothing about boxing are making high-level deals for DAZN,” wrote Thomas Hauser, “and the numbers aren’t adding up for them on any rational basis.”

DAZN alienated many of their U.S. subscribers when they pushed back the starting time of the Alvarez-Kovalev fight so that it wouldn’t overlap an MMA show airing in the same time slot. When the first bell sounded for Alvarez-Kovalev, it was well past midnight (1:18 a.m. to be exact) in the Eastern time zone. Even Alvarez was embarrassed. Canelo promised to use his influence to see that a flapdoodle like this never happened again.

Reporters that covered the Alvarez-Kovalev fight and arrived in Las Vegas several days before the event could see that there was tension between Canelo and Oscar De La Hoya, Golden Boy’s founder and president. Canelo barely acknowledged Oscar, even when they were sharing a dais.

Ryan Garcia, the brightest young star in the Golden Boy stable, also has issues with Oscar De La Hoya. Garcia, who hooked up with Canelo’s longtime trainer Eddy Reynoso last year, pulled out of a fight in July because he wasn’t happy with the purse. Like all boxing promoters, Golden Boy has been forced to tighten its belt because of the terrible pandemic which has stripped away gate revenue.

“I filed the lawsuit so I can get back to boxing and give my fans the show they deserve,” Canelo told Coppinger. As yet there has been no formal response from Oscar or DAZN. A quick glance at the Golden Boy Promotions web site finds this message: “Sorry, no events are scheduled at this time.”

We will follow this story as it unfolds. Check back for updates.

Check out more boxing news on video at the Boxing Channel
 
In a way they all kind of deserve each other. So what are the odds on the time it will take to make a silent, final undisclosed settlement. What are the odds they will fight it out and all loose but the lawyers, what are the odds that they stay together and make great fights for the next four years ? I know one thing for sure the lawsuite surprised me. And I am equally sure they all can go broke and never make a solid deal and living ever again and I would be fine with that.This Has nothing to do with those who sit and watch fights who have put up with the garbage that has been sold to us or the hustlers that have told the fans all the lies. But if it benifits them they will throw in the lines of this is for the fans for boxing for the good of the sport. Yea OK
Thanks for the write up.
 
Seven years after Oscar had to put himself into emergency rehab a day before Mayweather-Canelo, why am I not surprised Canelo is finally suing his promoter for refusal/inability to do his job? Reports indicate Oscar was on and off the wagon for these last seven years while juggling his promotional attention to Canelo....divided by his social media feuding with another one of his fighters...and stuck in magical thinking about ego-driven comeback fights. Canelo deserves better than a selfish alcoholic.
 
I do not follow too much the personal lives of figthers or promoters but seems to be the way these days with lack of fights. So I do not know if or what The Golden Boy is lifestyle wise. I know they did a test on Canelo and he came up positive for PEDs that was a test and a medical fact. So maybe they do have some common ground after all. Who knows if common ground will be reached but not in a courtroom. It will get ugly just the prep for it all.
 
This a big/good story.

Even though there is probably a bit more substance to Canelo’s legal grievances it reminds me a little of when Top Rank (T.R.) and Golden Boy Promotions (G.B.P.) previously filed a joint writ against Haymon with the intention of taking him and/or Premier Boxing Champions (P.B.C) down.



With the exception of perhaps a handful of fighters (Pacquaio included) Top Rank, or better put Bob Arum, would rarely let anyone in their/his stable get so financially/otherwise powerful such that they were capable of presenting the kind of commercially strategic risk that Canelo now does to GBP and DAZN.



You can see where DANZ is coming from though.

As it most likely now - with the COVID19 pandemic - makes very little commercial sense to them to pay Oscar his $40M tranche (so he can distribute the circa $30M to Canelo that Saul is guaranteed to earn) every fight when there is no way to recoup those costs (with live crowds and their gate/ticket costs) and generate the kinds of revenues;

.
A) That were previously available before the countrywide/global economic downturn that COVID19 presented.


B) That the contract and parties originally envisaged at the time the agreement was brought into effect.​



However, for several reasons that does not mean DAZN is on firm ground as a defendant to Canelo’s writ.

It also doesn’t mean DANZ are completely without a defence either.



More on that a little later in this post.



Even if we put to one side how quickly Oscar appears to have publicly folded on this matter; based on what is written on the internet and websites like this; it is hard to foresee Alvarez’s writ unfolding in a manner that does not favor Canelo and/or award him with, at least, some of what he is requesting from the court.

If Saul wins big and gets all he is asking that could, if not permanently reshape DANZ and GBP then, redefine their business models in a potentially unprofitable/embarrassing way.



The kicker(s) might not stop there either.



Imagine if, in the future, whenever any network broadcaster wanted to book Canelo (and that large portion of Mexico’s boxing audience that he represents to networks/promoters) in for a marquee fight the man they have to call is Al Haymon or Richard Schaefer.

That outcome might turn Oscar’s bowels to water and destroy what’s left of his entrepreneurial sole/spirit.



Particularly if TMT promotions were involved somehow.



One might think that given the option of claiming that the COVID19 global pandemic constitutes the most likely culprit for any proven unwillingness on DAZN’s part to part with the agreed sums of cash, that option would then provide the defendant’s (particularly DANZ) with a Force Majeure style of defence.

It’s by no means an unlikely possibility.

For readers that are unaware of contract law and/or what Force Majeure means; it basically refers to an unforeseeable circumstance that is claimed to be responsible for any party to an agreement failing to meet their contractual obligations.



Furthermore, since the World Health Organization declared COVID-19 as a global pandemic in March 2020 this year, one might think that that consideration combined with the fact that;

.
A) USA have reported ~6000 COVID-19 cases and ~100 deaths.


B) COVID19 was known to have spread into almost 50 states.


C) Several USA states and their metropolitan areas were declared to be states that were in emergency states/status; including Columbia, New York, Los Angeles, Miami, Dallas, and Seattle.


D) San Francisco city was in complete lock down.


E) Large gatherings of people were banned by governments/cities which then led to closed bars, restaurants, and other venues/spaces.


F) Many school regions across USA had their schools cancelled indefinitely.


G) COVID19 meant that large gatherings of crowds of spectators - including those that would attend major sporting events such as baseball and boxing - were effectively banned/impossible.​


Effectively means that the unprecedented and unforeseen events that COVID19 presents genuinely impacted DAZN and GBP’s ability to fulfill their contractual obligations in ways that Canelo’s writ might have overlooked.



I mean, how were DAZN (and GBP) to have known at the time they signed the contract that a COVID19 pandemic would sweep across the country/globe and impede their ability to generate the revenues that Canelo and their contract both depended upon and expected?

It’s not an entirely unreasonable argument or defence.



There are several (usually 3 in fact) tests as to whether Force Majeure applies and I will not go into them all here anymore than what I say below.



For DAZN and/or GBP to meaningfully rely upon a COVID19 style Force Majeure defence they will have to substantiate a connection or meaningful relationship between COVID19 and their (alleged) inability to perform their contractual obligations.

For example, a plausible COVID19 scenario would be the inability of one party to perform their contractual obligations due to them having to self isolate.

Another plausible scenario is that a boxing event could not be adequately staged due to some (or all) of the construction team having to self isolate and/or being unable to work in close proximity of each other due to COVID-19/regulations.



It would be *interesting to read the contract between the parties because if it does not explicitly have a Force Majeure provision (that is correctly designed) within it that will not make it any easier for DAZN and GBP.



Another consideration for DAZN and GBP that may not be well received is the fact that many Force Majeure clauses (or rulings) do not consider the link between the (claimed) Force Majeure event (COVID19 in this instance) and their inability to perform their contractual obligations to officially qualify as a “Force Majeure Event” if the claimed Force Majeure event (COVID19) simply disrupts the profitability of the contractual agreement.

To be clear; a disruption and/or disturbance - with pandemic or otherwise origins - that only impacts the profitability of the agreement is often not seen to be sufficient enough to officially qualify as a “Force Majeure Event”.

Not unless there is an express contractual provision for such a condition; which I why I *above said; “It would be interesting to read the contract between the parties because . . . . ”.



As such (unless there is an express contractual provision for such a condition) an economic recession and/or any other unfavorable business circumstances/situation would also be unlikely to be sufficient enough to officially qualify as a “Force Majeure Event”; even if such circumstances could be clearly shown to have a direct relationship to the COVID-19 pandemic.



Another problem for DANZ and GBP might be that it is clear - from the fights pertaining to other fighters that DANZ is currently staging/broadcasting - that DANZ’s ability to stage and broadcast a boxing event (including one that might involve Canelo) is not completely impaired.

So, at this (early) stage (of the writ) that appears to leave DANZ and GBP in a position where they have a duty to mitigate Canelo’s claimed loss.

Perhaps it is that DANZ feel they have already complied with that requirement by offering Canelo (as is reported) less than his guaranteed minimum for fights at such times as they (say they) are impacted by (what they believe officially qualifies as) a “Force Majeure Event”.



It’s going to be interesting to watch this one play out.

If someone can get hold of a copy of the writ please do so and post either it and/or the link to it here in this forum.



Cheers,

Storm.

:) :) :)
 
StormCentre said:
This a big/good story.

Even though there is probably a bit more substance to Canelo’s legal grievances it reminds me a little of when Top Rank (T.R.) and Golden Boy Promotions (G.B.P.) previously filed a joint writ against Haymon with the intention of taking him and/or Premier Boxing Champions (P.B.C) down.



With the exception of perhaps a handful of fighters (Pacquaio included) Top Rank, or better put Bob Arum, would rarely let anyone in their/his stable get so financially/otherwise powerful such that they were capable of presenting the kind of commercially strategic risk that Canelo now does to GBP and DAZN.



You can see where DANZ is coming from though.

As it most likely now - with the COVID19 pandemic - makes very little commercial sense to them to pay Oscar his $40M tranche (so he can distribute the circa $30M to Canelo that Saul is guaranteed to earn) every fight when there is no way to recoup those costs (with live crowds and their gate/ticket costs) and generate the kinds of revenues;

.
A) That were previously available before the countrywide/global economic downturn that COVID19 presented.


B) That the contract and parties originally envisaged at the time the agreement was brought into effect.​





However, for several reasons that does not mean DAZN is on firm ground as a defendant to Canelo’s writ.

It also doesn’t mean DANZ are completely without a defence either.



More on that a little later in this post.



Even if we put to one side how quickly Oscar appears to have publicly folded on this matter; based on what is written on the internet and websites like this; it is hard to foresee Alvarez’s writ unfolding in a manner that does not favor Canelo and/or award him with, at least, some of what he is requesting from the court.

If Saul wins big and gets all he is asking that could, if not permanently reshape DANZ and GBP then, redefine their business models in a potentially unprofitable/embarrassing way.



The kicker(s) might not stop there either.



Imagine if, in the future, whenever any network broadcaster wanted to book Canelo (and that large portion of Mexico’s boxing audience that he represents to networks/promoters) in for a marquee fight the man they have to call is Al Haymon or Richard Schaefer.

That outcome might turn Oscar’s bowels to water and destroy what’s left of his entrepreneurial sole/spirit.



Particularly if TMT promotions were involved somehow.



One might think that given the option of claiming that the COVID19 global pandemic constitutes the most likely culprit for any proven unwillingness on DAZN’s part to part with the agreed sums of cash, that option would then provide the defendant’s (particularly DANZ) with a Force Majeure style of defence.

It’s by no means an unlikely possibility.

For readers that are unaware of contract law and/or what Force Majeure means; it basically refers to an unforeseeable circumstance that is claimed to be responsible for any party to an agreement failing to meet their contractual obligations.



Furthermore, since the World Health Organization declared COVID-19 as a global pandemic in March 2020 this year, one might think that that consideration combined with the fact that;

.
A) USA have reported ~6000 COVID-19 cases and ~100 deaths.


B) COVID19 was known to have spread into almost 50 states.


C) Several USA states and their metropolitan areas were declared to be states that were in emergency states/status; including Columbia, New York, Los Angeles, Miami, Dallas, and Seattle.


D) San Francisco city was in complete lock down.


E) Large gatherings of people were banned by governments/cities which then led to closed bars, restaurants, and other venues/spaces.


F) Many school regions across USA had their schools cancelled indefinitely.


G) COVID19 meant that large gatherings of crowds of spectators - including those that would attend major sporting events such as baseball and boxing - were effectively banned/impossible.​




Effectively means that the unprecedented and unforeseen events that COVID19 presents genuinely impacted DAZN and GBP’s ability to fulfill their contractual obligations in ways that Canelo’s writ might have overlooked.



I mean, how were DAZN (and GBP) to have known at the time they signed the contract that a COVID19 pandemic would sweep across the country/globe and impede their ability to generate the revenues that Canelo and their contract both depended upon and expected?

It’s not an entirely unreasonable argument or defence.



There are several (usually 3 in fact) tests as to whether Force Majeure applies and I will not go into them all here anymore than what I say below.



For DAZN and/or GBP to meaningfully rely upon a COVID19 style Force Majeure defence they will have to substantiate a connection or meaningful relationship between COVID19 and their (alleged) inability to perform their contractual obligations.

For example, a plausible COVID19 scenario would be the inability of one party to perform their contractual obligations due to them having to self isolate.

Another plausible scenario is that a boxing event could not be adequately staged due to some (or all) of the construction team having to self isolate and/or being unable to work in close proximity of each other due to COVID-19/regulations.



It would be *interesting to read the contract between the parties because if it does not explicitly have a Force Majeure provision (that is correctly designed) within it that will not make it any easier for DAZN and GBP.



Another consideration for DAZN and GBP that may not be well received is the fact that many Force Majeure clauses (or rulings) do not consider the link between the (claimed) Force Majeure event (COVID19 in this instance) and their inability to perform their contractual obligations to officially qualify as a “Force Majeure Event” if the claimed Force Majeure event (COVID19) simply disrupts the profitability of the contractual agreement.

To be clear; a disruption and/or disturbance - with pandemic or otherwise origins - that only impacts the profitability of the agreement is often not seen to be sufficient enough to officially qualify as a “Force Majeure Event”.

Not unless there is an express contractual provision for such a condition; which I why I *above said; “It would be interesting to read the contract between the parties because . . . . ”.



As such (unless there is an express contractual provision for such a condition) an economic recession and/or any other unfavorable business circumstances/situation would also be unlikely to be sufficient enough to officially qualify as a “Force Majeure Event”; even if such circumstances could be clearly shown to have a direct relationship to the COVID-19 pandemic.



Another problem for DANZ and GBP might be that it is clear - from the fights pertaining to other fighters that DANZ is currently staging/broadcasting - that DANZ’s ability to stage and broadcast a boxing event (including one that might involve Canelo) is not completely impaired.

So, at this (early) stage (of the writ) that appears to leave DANZ and GBP in a position where they have a duty to mitigate Canelo’s claimed loss.

Perhaps it is that DANZ feel they have already complied with that requirement by offering Canelo (as is reported) less than his guaranteed minimum for fights at such times as they (say they) are impacted by (what they believe officially qualifies as) a “Force Majeure Event”.



It’s going to be interesting to watch this one play out.

If someone can get hold of a copy of the writ please do so and post either it and/or the link to it here in this forum.



Cheers,

Storm.

:) :) :)
Click to expand...


In response to your fine post and in honor of politicians everywhere, here is: https://www.youtube.com/watch?v=FNVnprnlEX8
 
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Canelo vs. Force Majeure. IMO. Of course these things rarely go to court and are settled well before that happens as the entire deal is time-sensitive. Canelo is being called a "Diva" on many other sites. He needs to be careful. He needs to fight.

Oh yes, I like electronic music as one of many genres. Great to bench press to and great to work the heavy bag.
 
Kid Blast said:
Canelo vs. Force Majeure. IMO. Of course these things rarely go to court and are settled well before that happens as the entire deal is time-sensitive. Canelo is being called a "Diva" on many other sites. He needs to be careful. He needs to fight.

Oh yes, I like electronic music as one of many genres. Great to bench press to and great to work the heavy bag.
Click to expand...


KB, wow . . ..

An EDM track posted by you - that must be a first.



Once you have listened/trained to good EDM there’s no going back.



I never used to be a big fan of it until one day I walked into London gym and they had it playing and I found it made my workouts much more enjoyable.

After that, I never looked back since that day.



Yesterday I read on another website that Canelo’s writ was dismissed in the first instance.



Whilst that may seem like a win for DANZ and GBP I am not sure that it really is though.

As the grounds for the dismissal effectively represent a glorified typo (in Canelo’s writ) and as such it should be a mere formality to rectify.



It appears that the complainant (or better put Alvarez’ lawyers) didn’t properly list/detail and/or describe the citizenship of the other organisations/parties properly.

That's all.



In the big scheme of things it is a minor oversight that both, is easily rectified and should not change the general thrust/objective of the writ.

It's merely a formality to amend the writ and proceed.



Notwithstanding the fact that I haven’t read the writ yet and can only gauge it from what’s published on the web . . ..

I think Canelo should; (i) stay in middleweight and fight all the champions there, Charlo included; and (ii) get (if not now then sometime in the near future) what he was guaranteed to earn by DANZ/GBP.






Cheers,

Storm.

:) :) :)





PS: now that you’re converted to EDM check out the below track it is a legendary anthem in clubs and some UK gyms. It’s one of my all time favorites through the stereo late at night loud.
 
Come on mate. I was a Tangerine Dream fan for years. But I will admit Sasha is something else. Sebastian Sellers is pretty good as well. As for the Canelo episode, at some point the fans could turn on him for what they perceive as "Diva behavior," as they likely do not understand the back stories. This is where complexity can be very bad. I myself no longer craves to watch Canelo--when Loma and Beterbiev are on the docket. Not to mention the heavies.
 
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I don’t think the Mexican fans will turn on Canelo.

They still loved him through all those years when he made his opponents fight at catchweights.



The problem for Alvarez will be if the DANZ/GBP (and Canelo?) contract provides for DANZ’s actions and/or means that the current circumstances officially qualify as a “Force Majeure Event” and/or something similar.



According to some outlets; Canelo - under the aforementioned contract - already fought Rocky Fielding for less than the guaranteed $30M.

So (if that’s true) it’s not like there is not a precedent for the lower figure DANZ seem to be offering; to mitigate the loss.



Of course none of means Canelo is or is not a Diva.

But if he is a Diva then what does that make Oscar.

A Diva’s pimp?



I am just waiting for Bob Arum to chime in on his thoughts about the writ.

It will be interesting to see if Arum can do it without plugging an opportunity to promote Canelo himself if he becomes a free agent.



Give Bud a few years (and let Canelo come back down to something near light middleweight) and we then might see a catchweight fight between Crawford and Canelo.

It’s not as crazy a proposition as the Pacquaio V Oscar fight would have seemed if it was floated when Pacquaio was fighting Marquez.







Cheers,

Storm.

:) :) :)
 
Kid Blast said:
"what does that make Oscar.?" I need to think about that and will get back to you.
Click to expand...


Well, while you're pondering that perhaps you can also consider this . . . . .


Joe Smith is calling out Beterbiev and Arum’s matchmaker thinks Smith can win.



Not many dudes are running towards (and asking to fight) Beterbiev.

Smith is tough and his win against Alvarez was good.

But his inside and medium range game is full of holes when compared to a guy like Artur.



Smith might just be running right into something that might not end well.




Cheers,

Storm.

:) :) :)
 
Artur will demolish him but hopefully he will get a nice payday. Joe has the power to deck anyone but he lacks too many other things to deal with this monster. Love Joe but..............
 
photo2957.jpg Oscar is a player--not like Hearn--but still a player. Arum is older than me for God's sakes.
 
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Nice thread enjoyed the kick back thanks all. I am not that detailed today. Feel people will move on if it drages out, think those with sufferinng from covid will not respect the greed in this all. I keep thinking if Nello moves on with a good deal and bam loses a fight figrst time up and it could happen its boxing he will look bad and a victim of pore decisions. Finally this whole thing had to happen. Courts are funny things they could look at the large pic and say this could set precident with all sport and wecan not hve it. Thanks for the clarity and depth to it all.
Blues
 
Cathy Duva (Main Events) might not be a bad fit for Canelo.



Although not advertised as a promotional house . . . .

PBC (and their potentially different promoter per fight approach) might be a good fit as well.



In fact both above options could work together simultaneously.






Cheers,

Storm.

:) :) :)
 
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