The looming court war is expected to be bloody and creates a cloud of doubt on Pacquiao’s future.
On one side is Pacquiao’s registered manager Marty Elorde who answers to Japanese principals. Elorde inked Pacquiao to a five-year contract in January 2000 and for 33 percent share of his purses, paid a signing bonus of over P1 Million and agreed to extend a monthly salary of P10,000. Elorde is represented by the Rodriguez, Laluces and Ecarma law offices.
On the other side is Pacquiao’s business manager Rod Nazario who was contracted by Elorde to negotiate bouts for the fighter on an exclusive basis. The contract stipulates a 10 percent share of Pacquiao’s purses for Nazario whose legal adviser is former World Boxing Council (WBC) secretary-general Rudy Salud.
Other parties in the squabble are San Francisco-based lawyer Sydney Hall who was contracted by Nazario for legal services and takes a seven percent cut of Pacquiao’s purses, New Jersey impresario Murad Muhammad whose company M&M Sports was contracted by Nazario to promote Pacquiao’s last three fights in the US and New York lawyer Lou DiBella who recently offered Pacquiao a $2.5 Million, three-year deal for his exclusive marketing, distribution, and matchmaking rights.
DiBella’s bid triggered a showdown between Elorde and Nazario. The bid was coursed through Elorde, not Nazario who confessed to a verbal commitment extending Muhammad’s rights to promote Pacquiao.
Because of the crack in Pacquiao’s management team, DiBella withdrew his offer the other day.
Pacquiao has opted not to take sides in the mess and said he hopes the opposing parties eventually come to terms. Pacquiao is in General Santos City, a safe distance away from the war zone. The word from Nazario’s camp is Muhammad has sent a counteroffer but terms are yet undisclosed to media.
Last Friday, Elorde’s lawyer Hector Rodriguez sent a letter to Nazario terminating his business manager’s contract. Rodriguez accused Nazario of "entering into various contracts without prior knowledge, approval and/or consent of (Elorde)."
Rodriguez also wrote Hall advising him to "cease and desist from further representing that you can negotiate and transact for and in behalf of Mr. Pacquiao." Rodriguez said Hall’s contract with Nazario is "null and void" because it was negotiated without Elorde’s prior knowledge and consent.
In another letter, Rodriguez told Muhammad’s lawyer Sean O’Shea that "M&M Sports has no legal right whatsoever to prohibit other promoters from making offers with respect to Mr. Pacquiao’s bouts nor enjoin our client (Elorde) from entertaining and accepting any offers from legitimate promoters."
DiBella’s lawyer Lamont Jones said the $2.5 Million offer would have assured Pacquiao’s financial independence. He noted that "the various individuals who purport to represent Mr. Pacquiao are exploiting him in an unconscionable fashion that violates not only the Muhammad Ali Boxing Reform Act but also the laws of every boxing jurisdiction in the US."
Jones accused Nazario of entering into a co-promotional agreement with Muhammad. He said the "shameful" arrangement has forced Pacquiao to pay more than half of his gross earnings "to a bevy of representatives."
But Nazario said he has no signed deal with Muhammad and only verbally agreed to extend M&M Sports’ rights to promote Pacquiao’s fights in the US as an expression of gratitude because it was the New Jersey promoter who negotiated the Filipino’s big break – the world title shot against Lehlo Ledwaba in Las Vegas last year. Nazario said his conscience is clear and stands by his word of honor.
Elorde told The STAR yesterday that if Muhammad continues to promote Pacquiao, he will desist from actively participating in the fighter’s affairs. He said Nazario told him that if DiBella wrests Pacquiao’s rights from Muhammad, he will sell his 10 percent stake.
Elorde said DiBella is threatening to expose Pacquiao’s case in court and seek redress before Ali Reform Act author Sen. John McCain. Hall, for his part, said he will also sue – exactly whom is not certain. Elorde’s lawyers are preparing to go to court, too, to formally rescind Nazario’s contract.
The suits will surely diminish Pacquiao’s marketability. No international promoter will want to offer Pacquiao a contract with his Filipino management team in a shambles. And if the suits prosper, maybe Pacquiao may not even be able to fight in the US for fear of injunctions.
It’s the same, old, sad story of a Filipino fighter who upon rising to prominence, finds himself in the middle of a money conflict involving his handlers. In the end, he is the victim, not those who surround him and feed off his fortune.