Everything you need to know about the Canelo Alvarez lawsuit of Golden Boy, DAZN

News of Canelo Alvarez suing his promoter Oscar De La Hoya and streaming service DAZN made waves. Here are more details of Alvarez’s court filing.

Late on Tuesday, Sept. 8, news of Canelo Alvarez suing longtime promoter Oscar De La Hoya, Golden Boy Promotions, and streaming service DAZN got everybody’s attention. Alvarez’s court filing provides more details about his lawsuit.

FanSided closely reviewed Alvarez’s 24-page court filing, and here are the most revealing parts.

The document submitted by Alvarez and his legal council offer specifics about Alvarez’s dealings with Golden Boy and DAZN. Alvarez’s contract, referred to in the suit simply as “the Alvarez Contract,” was legally binding between Alvarez and Golden Boy. DAZN was included, but Golden Boy was responsible in a separate contract with DAZN for setting up the financial structure of DAZN’s broadcasting of Alvarez’s fights.

“Plaintiffs are informed and believe that the DAZN Contract required DAZN to pay to Golden Boy Promotions a license fee of $40 million per bout for ten Alvarez bouts expected to occur in the years 2019 to 2023,” read Alvarez’s filing.

Every Alvarez fight, excluding the Rock Fielding bout, required DAZN to shell out a $40 million licensing fee. During the pandemic, that posed a problem for DAZN, which is the central conflict resulting in Alvarez’s lawsuit. They didn’t want to pay $40 million due to the limitations caused by COVID-19.

If DAZN couldn’t meet its financial obligations, then De La Hoya and Golden Boy were on the hook for picking up the tab according to the court document.

It reads in part, “Oscar De La Hoya, Golden Boy Promotions’ CEO, personally assumed liability for all guaranteed payments.”

Canelo Alvarez appears to want money and freedom from Golden Boy and DAZN.

Alvarez and his team allege that Golden Boy and DAZN agreed on specific terms that were misrepresented or never revealed to Alvarez. The most notable are the particulars of opponent selection. Alvarez thought he had the final say in who he fights, but Golden Boy agreed to allow DAZN to have an explicit say in the matter.

“Prior to these discussions with Defendants, Alvarez was unaware that DAZN believed Golden Boy Promotions had promised that he would fight Golovkin, unaware that the DAZN Contract gave DAZN the right to reject the opponents he selected, and was unaware that the DAZN Contract contained clauses potentially inconsistent with those of the Alvarez Contract,” stated the court filing.

This wording leads to Alvarez and his team’s allegation that Golden Boy is guilty of fraud and concealment.

Alvarez’s legal document also states that he was willing to “evaluate” offers from DAZN less than the $40 million licensing fee, due to the pandemic, but that DAZN came in too low. Then, the talks ended.

“However, the entire value of the package – for a bout against another World Champion – was substantially less than Alvarez’ contractual guarantee,” stated Alvarez’s filing.

In all, Alvarez is seeking “no less than $280 million.” Alvarez’s lawsuit only tells his side of the story. It will be interesting to hear how much DAZN proposed to pay for the new licensing fee. Alvarez didn’t disclose what he considers to be a “fraction” of the original $40 million agreement.

DAZN is struggling financially at the moment and just laid off staff. Don’t be surprised if they try to reach a financial agreement with Alvarez in concert with Golden Boy. This suit shows that Alvarez wants to get paid and be done with his obligations to both DAZN and Golden Boy.

It’s hard to see any scenario where he can still do business with either company. The question is, what number is enough for Alvarez to drop his suit and what are Golden Boy and DAZN willing to pay to avoid litigation? We’ll see, but the clock is ticking on Alvarez’s career.