Trouble ahead–Murad hreatens suit

New Jersey promoter Murad Muhammad won’t make it easy for International Boxing Federation (IBF) superbantamweight champion Manny Pacquiao to sign a three-year, $2.5 million contract with former Home Box Office (HBO) TV vice president Lou DiBella.

San Francisco-based lawyer Sydney Hall, who is in town, told The STAR yesterday "litigation is coming" as Muhammad isn’t about to lose control of Pacquiao without a fight.

It was Hall who introduced Muhammad to Pacquiao’s business manager Rod Nazario last year. Muhammad arranged Pacquiao’s last three fights in the US on an exclusive basis.

Hall said Muhammad’s lawyer Sean O’Shea sent a letter the other day claiming the promotional rights were extended by Nazario and threatened to sue Pacquiao if he accepts DiBella’s offer. The letter was addressed to DiBella’s counsel Lamont Jones.

Hall replied to O’Shea yesterday and advised him "to immediately cease and desist any written warnings of any kind confirming the existence of an extension of the original contract with Manny Pacquiao and M&M Sports, Inc. beyond the original agreement dated June 19, 2001."

Last Monday, Pacquiao met Nazario in Parañaque to discuss the terms of DiBella’s bid. Also in the meeting were lawyers Hector Rodriguez and Leoville Ecarma, representing Pacquiao’s manager Marty Elorde.

Rodriguez said Nazario asked for a few days to study the contract.

"Mr. Nazario told us of his commitment to Mr. Muhammad of first priority in negotiating Manny’s fights in the US," added Rodriguez. "We respect that commitment. But for the moment, the only food on the table is DiBella’s and our deadline to reply is Friday (today). We assured Mr. Nazario that we are on the same team, that we only want what is best for Manny."

After Nazario saw DiBella’s 28-page contract, he faxed it to Muhammad. When DiBella learned that Muhammad was faxed a copy, he phoned Elorde and was "angry as hell" because they had previously agreed not to allow third parties access to the document.

Last Wednesday, Elorde conferred with Nazario and his brother Berto in Parañaque. Nazario said there were several loopholes in DiBella’s contract and reiterated that he intends to keep his word of honor to Muhammad. Elorde told Nazario he will take the blame if the decision is to leave Muhammad for DiBella since Pacquiao isn’t a signatory to the extension.

Elorde said Nazario is planning to take Pacquiao on a trip to Saipan this weekend after receiving an invitation to headline a future boxing card in the island.

If Pacquiao signs the DiBella contract, Elorde said Los Angeles-based trainer Freddie Roach will decide on the fighter’s condition for a proposed Aug. 17 title defense in Virginia. If Roach clears Pacquiao to fight, Elorde said the bout will push through as planned. DiBella is offering a $200,000 purse for Pacquiao’s next defense against a challenger of his choice.

Elorde described DiBella’s offer as transparent. "I realize there are several provisions that need to be discussed but on the whole, it’s a very good offer," continued Elorde. "It’s the best offer we’ve ever gotten for Manny."

Rodriguez said Nazario is concerned that if Pacquiao loses during the three-year term of DiBella’s contract, the deal will automatically be cancelled. "The basis of the agreement is winnability," said Rodriguez. "It’s a business contract. The idea is to proceed in good faith. It doesn’t mean that if Manny loses, his value will go down. Look at Barrera and Morales. In their first fight, Barrera should’ve won and he got a bigger purse in the rematch. In their second fight, Morales should’ve won and I expect him to get a bigger purse if there is a third bout."

Hall drafted a memorandum for Nazario yesterday, detailing the provisions in DiBella’s contract that should be renegotiated. In the memorandum, Hall said Pacquiao should control all marketing revenues in the Philippines and should be guaranteed a $100,000 purse if he loses the title in a subsequent fight. He added that in case of litigation, jurisdiction should be in California where Pacquiao trains, not New York where DiBella is based.