GAB steps into Pacquiao row

Games and Amusements Board (GAB) chairman Eduardo Villanueva is summoning the opposing parties battling for control of fighter Manny Pacquiao’s business affairs to a meeting in the government agency’s Makati office this week.

Villanueva told The STAR yesterday his first priority is to broker a reconciliation between Pacquiao’s estranged manager Marty Elorde and business agent Rod Nazario but if a settlement is impossible, he will decide on the merits of the arguments submitted by the feuding factions, keeping in mind the International Boxing Federation (IBF) superbantamweight champion’s best interests.

Pacquiao signed Elorde to a manager’s contract on Jan. 31, 2000 then both inked Nazario to a business agent’s pact that same day.

In a letter dated last July 5, Elorde’s lawyer Hector Rodriguez sent a notice of revocation to Nazario. Rodriguez accused Nazario of entering into contracts without Elorde’s prior approval and consent. He said the contracts caused confusion and were prejudicial to Elorde and Pacquiao. A copy of Rodriguez’ letter was forwarded to the GAB which has jurisdiction in resolving issues of contractual dispute involving professional fighters.

A week ago, Elorde met Nazario’s legal adviser Rodrigo Salud to propose the terms of a reconciliation. Elorde initially assured Salud he would withdraw his letter to terminate Nazario as a gesture of good faith. But within hours after assuring Salud, Elorde decided not to withdraw the letter on his lawyers’ advice because it would supposedly weaken his legal position in case of a suit.

A settlement would’ve likely been brokered if only Elorde made good on his word to withdraw the letter. With Elorde’s change of heart, the battle lines were drawn.

The impasse led Pacquiao to decide on whom to entrust his future – Elorde or Nazario.

In a letter dated last July 12 and addressed to Villanueva, Pacquiao said he is terminating Elorde’s contract and appealed to the GAB to uphold the validity of the rescission as "I have to prepare for my (next) title defense and I need to be free from all mental anguish that an unwanted manager can bring." It was clear that Pacquiao had decided in Nazario’s favor.

Pacquiao accused Elorde of "culpable violations" of their contract.

"Mr. Elorde has publicly admitted that he is merely fronting for two Japanese nationals," said Pacquiao. "This may cause my prosecution for violation of the anti-dummy law."

Pacquiao also said Elorde solicited an offer from Lou DiBella "upon false representation" and led the New York promoter to believe "it was a done deal" even as the deal was "grossly disadvantageous to my best interests."

Pacquiao charged Elorde of spreading rumors that he was shortchanged in his last fight against Jorge Eliecer Julio. "The fight was beamed to millions of fight fans all over the world, including the Philippines and it gave me the desired international exposure," explained Pacquiao.

Additionally, Pacquiao said Elorde terminated the Nazario contract without his consent. The contract was a tripartite agreement and is not terminable unilaterally, he stressed.

Pacquiao sent a letter also dated last July 12 to Elorde affirming his decision to end their relationship for actions inimical to his interest, for culpable violations of the agreement, and for unauthorized and unilateral termination of Nazario’s contract.

Elorde, for his part, said he will sue Pacquiao and Nazario for damages. "Malabo na ang reconciliation," he went on. "Naaawa ako kay Manny – sabi niya dapat lahat kami magkasundo. But I have no choice. I will seek legal recourse."

If Elorde and Nazario elevate their dispute to the courts, Pacquiao will still be allowed to continue fighting – unless he is restrained legally. The purse shares of the feuding groups will be held in escrow until the row is settled.

Villanueva said the GAB will discuss the Pacquiao case in a Board meeting on Wednesday then summon the opposing parties to explain their positions, tentatively the next day.

"Both sides should be heard," he said. "What we don’t want to happen is to jeopardize Manny’s career. We will decide what is just and what is to his best interest."