Big lawsuit, bigger questions in Canelo’s suit against De La Hoya and DAZN

By Norm Frauenheim–

The lawsuit isn’t a surprise. It’s been looming, brewing for at least a year in the contempt Canelo Alvarez has for Oscar De La Hoya and in mounting impatience he has for DAZN.

It finally landed, all 24 pages of it, in federal court this week in Los Angeles. From money to broken promises, it’s full of all the usual grievances and suspects.

Canelo is suing for $280 million. He wants out of his DAZN contract, a $365-million over 11 fights a couple of years ago. Then, it looked like a titanic deal and it still does, at least in terms of what seems to be happening to DAZN. It never foresaw the pandemic. Who did? But it appears to have blown a huge hole in what the streaming service had hoped to do.

DAZN looks to be sinking. In negotiations for a September fight, it’s alleged that it could no longer afford Canelo’s contracted minimum, $35-million a fight.  Canelo was reportedly offered a smaller purse and some stock in the company. It didn’t take Canelo long to figure out that the stock might soon be worth about as much as the contents of a spit bucket.

He decided to get what he could in court.  Nobody knows how long the pandemic will last and what the impact on simple households and billionaire budgets will be. Long, drawn-out legal proceedings – is there any other kind? – could end with a judgment and no payoff. In boxing terms, just another paper champion.

But Canelo has the time and the money to risk it. He’s 30, which means there are three, four, maybe as many as five more years left in his prime. Plus, he’s already wealthy, thanks in large part to DAZN. He grossed $105 million for three fights — Rocky Fielding, Danny Jacobs and Sergey Kovalev. There was no Gennadiy Golovkin, which figures to be an issue in court. DAZN invested plenty on the bet that it would happen. Fans have wanted it. But the lawsuit says a third GGG-Canelo fight is past its due date.

Time to move on. But to where? And to whom?

The guess is that Canelo has plenty in the bank, perhaps enough for him to promote himself. According to Forbes, he made $94 million in 2019, including victories over Fielding and Jacobs. Add $35 million for his victory over Kovalev in his last fight, and he earned $129 million over the last couple of years.

He’s got deep pockets. But is it enough for him to follow De La Hoya and Floyd Mayweather Jr. into independent entrepreneurship? Impossible to say. De La Hoya and Mayweather split with established promoters and during eras when there was no COVID. Each found a network partnership. But it’s hard to say what happens during a time rocked only by uncertainty

Even if the money is there, it’s not clear that anybody would partner with Canelo. He has the pay-per-view numbers to say he is the biggest draw in boxing. But there’s a debate about whether he’s the world’s best fighter, pound-for-pound. There are lingering questions about whether he could in fact become the face of the game in the defining way De La Hoya and Mayweather were.

De La Hoya had good looks and fast hands. People liked him. Mayweather’s dazzling elusiveness frustrated foes and his cocky claim on being The Best Ever exasperated fans. People hated him.

In marketing terms, both De La Hoya and Mayweather knew their roles and played them, each with their own kind of genius. But Canelo’s identity has never been quite so evident. He doesn’t have De La Hoya’s smile. Unlike Mayweather, he appears to be uncomfortable with criticism from fans, who didn’t like Mayweather, yet paid for just a chance to see him get beat.

His unpopularity, even among Mexican fans, was mentioned by Julio Cesar Chavez during an interview during the before his stoppage of Kovalev. Chavez, who could do no wrong in a different Mexican era, said that not everybody likes Canelo during a new Mexican era.

Symptoms of that have been evident. Fans left Las Vegas’ T-Mobile Arena amid scattered boos after his draw with GGG in their first fight in 2017. Mayweather would have heard the boos and turned them into business. De La Hoya would have smiled.

Canelo doesn’t seem to know what to do.

Who to be.

It’s hard to be the face of any game if the fans aren’t sure who you are. Canelo may go his own way after the lawsuit is resolved and COVID is gone.

But will anybody follow?