Boxing legend Manny Pacquiao has been ordered to pay $5.1m in damages to sports management firm Paradigm Sports Management (PSM) following a civil lawsuit. The Orange County jury found in favour of PSM in their claim that Pacquiao concealed information about a contractual relationship with TGB Promotions, which prevented the PSM from securing a fight for him. The contract gave PSM the right to market Pacquiao’s intellectual property, endorsements and secure exclusive rights to his earnings for a 10% cut.
PSM alleges that Pacquiao breached the contract when he signed with TGB Promotions for a bout with Yordenis Ugas, which he went on to win. The firm subsequently filed a lawsuit against Pacquiao, which has been ongoing since June 2021.
The jury awarded $5.1m in damages, with $3.3m covering an advance payment made to Pacquiao by PSM and $1.8m levied against the boxer as damages. PSM has also been permitted to collect 10% annual interest on the amount awarded by the verdict, dating back three years, in addition to at least $2m in attorney fees.
The lawsuit alleged that Pacquiao entered into the agreement with PSM to arrange a fight with Conor McGregor, which never happened. Pacquiao, who has not fought professionally since losing to Ugas in August, was also sued by Paradigm for breaching his contract.
The verdict is a blow to Pacquiao, who has previously been a successful champion both inside and outside of the ring. The Philippine senator had first signed with PSM in 2020, hoping to complete a four-fight deal with the firm worth at least $100m.
As a result of the verdict, Pacquiao has been ordered to pay $5.1m in damages to PSM. The former world champion has not commented publicly on the case.
