Although Malabon businessman Polding Correa was Pacquiao’s first registered manager, Nazario has been in the General Santos City fighter’s corner from the start. Nazario nurtured Pacquiao’s career until it blossomed.
Elorde, backed up by Japanese principals, became Pacquiao’s manager in January 2000. In turn, Elorde and Pacquiao signed Nazario as business manager for five years. Pacquiao has figured in seven fights since agreeing to the Elorde deal. Nazario negotiated each of those seven bouts and Elorde took 33 percent share of the purses.
A few weeks after Pacquiao stopped Jorge Eliecer Julio in his second title defense last month, Elorde revealed that New York impresario Lou DiBella had tendered a $2.5 Million, nine-fight, three-year deal for the Filipino’s promotional rights. DiBella made the offer on the premise that New Jersey promoter Murad Muhammad’s contract to represent Pacquiao had lapsed after three fights in the US.
The offer was almost too good to be true. A fortune of a lifetime was laid on Pacquiao’s table.
Elorde didn’t immediately submit the offer to Nazario who openly acknowledges a debt of gratitude to Muhammad for arranging Pacquiao’s IBF title shot. Nazario said he verbally assured Muhammad of priority in promoting Pacquiao’s next defense.
The first fight in DiBella’s package set a purse of $200,000. Pacquiao had never been paid as much. Against Agapito Sanchez last November, he was paid $120,000. And against Julio, his paycheck was $70,000. Elorde said Pacquaio was shortchanged in the two fights and looked to DiBella to make things right. Nazario justified the drop in purse to $70,000 as an investment because the fight was on the Lennox Lewis-Mike Tyson undercard and it exposed Pacquiao to millions of fans all over the world.
Nazario’s gamble obviously paid off. In the wake of Pacquiao’s sensational knockout over Julio, offers started to pour in. DiBella called. So did Don King.
Elorde’s lawyers Hector Rodriguez and Leoville Ecarma eventually showed Nazario a copy of DiBella’s offer. Nazario then faxed the copy to Muhammad. His intention was to get the best possible deal for Pacquiao. When DiBella learned that a copy reached Nazario and worse, Muhammad, he flared up and withdrew his offer.
Muhammad later sent his own termsheet to Nazario. It’s a $2.5 Million, eight-fight, 2 1/2-year offer. Compared to Di Bella’s bid, it’s more generous. DiBella proposed his share to be 33 1/3 percent while Muhammad’s cut was 20. Muhammad’s offer was broken down to $650,000 for the first year, $900,000 for the second and $1 Million for two fights in the last six months. DiBella’s bid was a package of $600,000 for the first year, $800,000 for the second, and $1 Million for the third plus a signing bonus of $50,000 and $50,000 more in the next two years.
Last week, Nazario sent copies of both bids to his legal adviser, former World Boxing Council (WBC) secretary general Rudy Salud, for review. Salud and his son Chito, also a lawyer, promised to submit their findings last Monday. But the Friday before, DiBella withdrew his offer and Elorde’s lawyers served notice to terminate Nazario’s contract as business manager.
An attempt was made to broker a conciliatory meeting between Elorde and Nazario the other day. Elorde’s lawyers, however, refused to back down from their demand for Nazario to quit as business manager. As a result, it doesn’t seem like a reconciliation is possible.
Salud told The STAR yesterday the key to break the impasse is Pacquiao himself. "Both Marty and Rod committed violations in their contracts," said Salud. "Which violations were more serious? I’m sure Manny knows just as he knows who has helped him more in his career. If he chooses Marty, that means he trusts him more than Rod. If he chooses Rod, then Rod should negotiate to buy Elorde out or kick him out legally."
Salud said DiBella’s 28-page contract was done "the American way," with numerous caveats and escape clauses that could release him from his obligations to Pacquiao. In contrast, Muhammad’s bid was a simple three-page document that was without frills.
Salud suspected that Elorde hatched a "grand scheme" from the onset to ease Nazario out of the picture. The "plot" involved making it appear that Pacquiao suffered actual damage because of DiBella’s withdrawal.
"Marty isn’t exactly blameless," explained Salud. "Under the law, he violated the terms of his contract by passing off his responsibilities and duties as boxing manager to somebody else. That’s what you call freeloading. Besides, he has admitted to be answerable to Japanese principals. That, too, is an admission of guilt under the law. Marty has no right to unilaterally revoke Rod’s contract because it was a tripartite agreement. Marty cannot do something legal unless he started with clean hands."
If the case is brought to the attention of the Games and Amusements Board (GAB), Salud said the government agency must rule on Elorde acting as a dummy for Japanese principals and reneging on his personal duties as a boxing manager. The GAB cannot ignore the violations and do a Pontius Pilate, added Salud.
As for San Francisco-based lawyer Sydney Hall, it appears that Elorde has no authority to cancel his seven percent share of Pacquiao’s purses because the deal was negotiated with the fighter himself. Salud said Hall advises Nazario on immigration and tax issues in the US.
It’s tough for Pacquiao to choose between Elorde and Nazario. But he’s come to a point of no return. Elorde and Nazario are no longer a viable tandem. One’s got to go. Pacquiao must decide and he’s got to do it soon because the longer he takes, the harder to convince big-money promoters to bank on the country’s only reigning world champion today.