Paradigm Sports Lawsuit: US Court Sides With Pacquiao

The sports agency had filed a breach of contract lawsuit against the legendary boxer

Manny Pacquiao gets temporary relief from a California court on lawsuit against him by Paradigm Sports Management . / MANNY PACQUIAO ON X.

Filipino boxing legend Manny Pacquiao’s civil lawsuit verdict in relation to Paradigm Sports Management (PSM) has been reversed by a Californian court, according to a recent report. The sports agency had originally filed a breach of contract lawsuit against Pacquiao and sought to "recoup a $3.3 million advance."

Pacquiao was ordered by a US jury last year to pay $5.1 million to Paradigm, with $3.3 million for breach of contract and $1.8 million for breach of implied covenant of good faith and fair dealing. After the verdict, Pacquiao's attorneys filed a motion claiming that PSM was not licensed as a manager under California law.

A tentative ruling was issued by California Superior Court judge Walter Schwarm on Wednesday.  “The court finds for Mr. Pacquiao on the declaratory relief cause of action and declares the contract void due to illegality,” said Schwarm in his ruling.

“Although the judgment is not presently final, we are pleased that the Court made its tentative decision on the legal issues in Mr. Pacquiao's favor,” said Atty. Jason Aniel, Pacquiao’s lawyer as he applauded the new decision.

“The Court decided the contract that Paradigm Sports Management sought to enforce against Mr. Pacquiao was illegal as Paradigm was not properly licensed,” he added.

As for PSM, their lawyer Judd Burstein said they would appeal the decision. “I have great respect for this judge but I disagree with him in this decision,” said Burstein in media reports. “I disagree with him on the fundamental issue, but he's the judge. ... I have won a lot of appeals in cases that I have lost at trial and I believe this will be one of those,” he added.

“PSM’s Audie Attar testified that he did not have a manager’s license for boxers in California in 2019, and that did not recall if he had such a license in 2020 and 2021,” said the report in part. “It noted that Attar was licensed as a manager in California from April 14, 2016, through April 30, 2017, but ‘his license expired after he did not complete the required annual renewal.”

On February 8, 2020, the two sides signed their first agreement, and in October of the same year, they signed their partnership agreement. Pacquiao was initially scheduled to fight PSM stablemate Conor McGregor, but the bout did not take place. Ultimately, the eight-division world champion fought Yordenis Ugas for his last fight in the professional ranks.

According to other reports, Pacquiao plans to hold an exhibition bout in Japan later this month, in addition to aiming for a shot at American Boxer Mario Barrios who is the World Boxing Council (WBC) welterweight champion later this year.