Representatives for Canelo Alvarez, Golden Boy Promotions and the streaming service DAZN met Tuesday to work through the key differences stemming from a breach-of-contract lawsuit Alvarez filed in federal court against the companies earlier this month, sources confirmed to ESPN Deportes.
The Athletic first reported on the 10-hour mediation session with the parties, and indicated that DAZN offered a new deal with Canelo worth around $20 million per fight, plus an additional amount based on the number of subscribers the event generates. Alvarez’s lawsuit sought $280 million in damages.
A spokesperson for Golden Boy had no comment. Golden Boy CEO Oscar De La Hoya tweeted earlier this month that the dismissal of the original lawsuit allowed for the parties to work out their differences.
Alvarez has until Monday to refile the suit, which was dismissed because of a technical error. Sources told ESPN Deportes that the error has been corrected, but the suit has not been refiled with mediation underway.
The mediation opens the door for Alvarez, who has been out of action since November because of the coronavirus pandemic, to fight in 2020. It would also help settle issues selecting opponents for the four-time champion, which was a sticking point that led to Alvarez’s lawsuit.
Alvarez last fought on Nov. 2, when he stopped WBO light heavyweight champion Sergey Kovalev in 11 rounds. Alvarez was scheduled to fight in May, but plans were put on hold because of the pandemic. As talks resumed between Alvarez, DAZN and Golden Boy, there was a disagreement over whom Alvarez would face and for how much.
”After extended discussions between the parties, DAZN offered to pay Alvarez and Golden Boy Promotions a fraction of the contracted $40 million license fee in cash and some DAZN stock in advance of a potential IPO,” the lawsuit stated. “However, the entire value of the package — for a bout against another World Champion — was substantially less than Alvarez’ contractual guarantee.”
It continued: “Given that DAZN had made it clear that it would not honor its contract, throughout the spring and summer of 2020, Alvarez repeatedly asked Golden Boy Promotions to explore alternative broadcast options for a fall 2020 bout. Although Golden Boy Promotions reported that it was talking to various broadcasters, it failed to put forth a single alternative plan by which it would pay Alvarez the $35 million it had promised him for each of his fights.”
Canelo signed a five-year, 11-fight, $365 million deal with DAZN in 2018.
Information from ESPN’s Steve Kim was used in this report.
