Sunday, May 27, 2018

Official Boxing Esq. World Boxing Ratings - May 2018

Presenting the May 2018 Boxing Esq. World Boxing Ratings:
Movements:

Heavys – Kubrat Pulev moves from 7 to out due to inactivity.  Jarrell Miller moves from 11 to 9 with win over top 25 fighter Johann Duhaupas.  David Haye drops from 15 to 18 due to crushing loss to Tony Bellew.  Artur Szpilka enters at 25.

Cruisers – Andrew Tabiti moves from 9 to 8 with win over Lateef Kayode.  

Light Heavys - Jean Pascal reenters from retired to 11 with announcement of comeback.  Lucien Bute moves from 17 to out due to inactivity.  Chad Dawson moves from 19 to out due to inactivity.  Thomas Oosthuizen moves from 22 to out due to inactivity.  Yunieski Gonzalez moves from 24 to out due to inactivity.  Callum Johnson, Felix Velera and Enrico Koelling enter at 23, 24 and 25 respectively.  

Super Middles - Jesse Hart moves from 12 to 10 with win over Demond Nicholson.  Julio Cesar Chavez, Jr. moves from 18 to out due to inactivity.  Azizbek Abdugofurov enters at 23 with win over Dmitrii Chudinov.  Vincent Feigenbutz enters at 25.  J'Leon Love moves from 24 to out after struggling with Jaime Barboza.

Middles - Tommy Langford moves from 18 to out after dropping split decision to Jason Welborn.  Vanes Matirosyan moves from inactive to 19 after KO loss to GGG.  Jack Culcay enters at 20 after moving up from 154 division.  Curtis Stevens moves from 21 to out due to inactivity.

Jr. Middles - Sadam Ali drops from 6 to 13 after crushing TKO loss to Jaime Munguia.  Munguia enters at 7 with WBO title win.  Jack Culcay moves from 12 to out due to move up to 160.  Tony Harrison moves from 14 to 12 with win over Ishe Smith.  Smith drops from 13 to 17 with the loss.  Konstantin Ponomarev enters at 16 after moving up from 147 division.  Dennis Hogan moves to 25 with win over Jimmy Kilrain Kelly.  Terrell Gausha moves from 23 to out. Antonio Margarito moves from 25 to out.

Welters – Konstantin Ponomarev moves from 13 to out due to move to 154.  Bradley Skeete moves from 14 to 23 due to knockout loss to Kermin Lejarraga.  Lejarraga enters at 15.  Egidijus Kavaliauskas moves from 16 to 10 on reconsideration.  Carlos Adames moves from 22 to 19 with win over Alejandro Barrera.  Francisco Santana enters at 25 with upset win over Felix Diaz in WBC Welterweight Tournament.  Carlos Ocampo drops from 25 to out.

Jr. Welters – Mikey Garcia moves from 1 to out as he's decided to vacate his 140 lb. belt and move back down to 135.  Felix Diaz moves from 7 to out with his upset loss at 147 to Francisco Santana.  Argenis Mendez enters at 16 after moving up from 135 and convincingly beating prospect Eddie Ramirez.  Alex Saucedo enters at 25.

Lights – Vasyl Lomachenko enters at 1 with win brilliant TKO win over Jorge Linares.  Isa Chaniev enters at 15 with unanimous win over Ismael Barroso.  Barroso moves from 15 to out.  Francisco Rojo moves from 24 to out due to move up to 140.  Simpiwe Vetyeka enters at 23 after move up from 126.  Hank Lundy enters at 25.

Jr. Lights - Vasyl Lomachenko moves from 1 to out due to move up to 135.  James Tenneson enters at 23 after come from behind TKO victory over Martin Joseph Ward.  Ward moves from 24 to out.  Christopher Diaz enters at 25.

Feathers - Josh Warrington moves from 8 to 6 with upset win over Lee Selby for the IBF crown.  Selby drops from 6 to 7.  Tugstsogt Nyambar enters at 12 with impressive TKO win over Oscar Escandon.  Escandon drops from 12 to 19.  Simpiwe Vetyeka moves from 14 to out due to move up to 135.  Takenori Ohashi moves from 19 to out after getting stopped by Taiki Minamoto.  Minamoto enters at 20.  Claudio Marrero moves from 22 to 18 with devastating 1st round KO of previously unbeaten Jorge Lara.  Lara moves from 24 to out.  Shun Kubo enters at 25.

Jr. Feathers – Isaac Dogboe moves from 7 to 2 with impressive stoppage of Jesse Magdaleno to capture the WBO title.  Magdaleno drops from 2 to 4.  Julio Ceja drops from 5 to 15 after upset stoppage loss to Franklin Manzanilla.  Manzanilla enters at 7.  Jonathan Guzman moves from 12 to out due to inactivity.  Evgeny Gradovich moves from 14 to out due to inactivity.  Shun Kubo moves from 19 to out due to move up to 126.  Edivaldo Ortega moves from 21 to out due to move up to 126.  TJ Doheny, Ryo Matsumoto, Albert Pagana and Thomas Patrick Ward enter at 22-25 respectively.

Bantams – Naoya Inoue moves from 5 to 2 after devastating blowout of Jamie McDonnell for the WBA Regular belt.  McDonnell drops from 2 to 6.  Emmanuel Rodriguez moves from 16 to 5 with dominating win over Paul Butler for the IBF belt.  Butler drops from 8 to 10.  Shohei Omori moves from 17 to out due to inactivity.  Jason Moloney moves from 25 to 17 with impressive stoppage of former world title holder Kohei Kono.  Aaron Alameda enters at 25.

Super Flys - Donnie Nietes enters at 6 after moving up from 112.  Miguel Gonzalez moves from 25 to out.

Flys – Donnie Nietes moves from 1 to out due to move up to 115.  Juan Hernandez Navarrete moves from 10 to out due to inactivity.  Froilan Saludar moves from 17 to out due to move up to 115.  Mirco Martin, Muhammed Waseem and Thomas Masson enter at 23-25 respectively.

Jr. Flys – Hekki Budler moves from 7 to 2 with upset win over unified WBA-IBF champion Ryoichi Taguchi.  Taguchi moves from 2 to 3.  Ganigan Lopez drops from 4 to 6 after 2nd round blowout loss to WBC Champ Ken Shiro.  Ryuji Hara moves from 14 to out due to move up to 112.  Alejandro Villasenor Hernandez enters at 24 after upset win over previously unbeaten Abraham Rodriguez.

Straws – Ryuji Hara moves from 17 to out due to move up to 112.  Osvaldo Novoa moves from 20 to out due to inactivity.  Reiya Konishi moves from 22 to out due to move up to 108.  Shin Ono, Toto Landero and Mark Barriga enter at 23-25 respectively.

Tuesday, May 22, 2018

Eric Molina Suspended for Two Years by UKAD

The UK National Anti-Doping Panel ("NADP") upheld the two-year suspension levied by UK Anti-Doping ("UKAD") on two-time heavyweight world title challenger Eric Molina, who tested positive for the banned substance Dexamethasone ("Dex") after his December 10, 2016 title challenge against Anthony Joshua.  Molina had appealed the provisional suspension that UKAD handed down on October 28, 2017.

Molina was cooperative with UKAD in that he did not request his B sample to be tested and admitted to using a supplement that contained Dex.  Molina stated in an interview with UKAD in September 2017, that he had a member of his team inject him in his "rear" with a product called Tribedoce DX.  Molina further stated that his brother purchased the supplement in Mexico and he thought it was just an ordinary shot of B12 vitamin.  Dex was clearly listed on the label as one of the ingredients. 

Dex is an anti-inflammatory that comes under the category of Glucocortoids and is on WADA's banned substance list when used in-competition only.  It is generally used for treatment of allergic disorders, skin conditions and breathing disorders, so out of competition use would not be considered a violation.  However, studies have shown that it can have performance enhancing effects in regards to stamina, among other benefits.

Due to Molina's cooperation, UKAD did not assert that his actions were intentional or that he was looking to cheat.  Due to the lack of intent, the starting point for a suspension would be two years under the WADA Code.  The case hinged on whether Molina's actions could reduce that penalty by falling under ADR article 10.4 where there is No Fault or Negligence or 10.5 where is No Significant Fault or Negligence.

The NADP determined that 10.4 was not applicable as, under the commentary to the WADA Code, this section is only applicable where there has been "some type of spiking or sabotage."  Molina did not claim any spiking or sabotage.

The NADP also held that 10.5 did not apply.  The UKAD actually helped the NADP out by pointing them to a CAS case between tennis player Marin Cilic and the International Tennis Federation where the range of sanctions a panel may consider for a No Significant Fault or Negligence reduction is laid out. 

Because the NADP determined that Molina "simply ignored all risks, failed to act with the utmost caution and shows 'a significant degree of or considerable fault'" - this put him in the 16 to 24 month bracket.  The "standard" sanction, according to the Cilic case, was 20 months.  But the NADP did not believe this case was "standard".  Instead, because Molina used a new source in Mexico and made "absolutely no checks whatsoever as to what was in that supplement" and Molina chose not to actively participate in the appeal - the NADP determined that it had no material evidence to consider dropping him below the standard suspension of two years.  Thus, the NADP upheld UKAD's two-year suspension of Molina.

The suspension was backdated to when the provisional suspension was enacted, October 28, 2017, so Molina will only have to sit out until after October 27, 2019.

TAKEAWAYS
  • This is a classic case of a boxer using a supplement without any regard for the WADA code.  Molina had been drug tested before and knew the procedure but still used a product that listed a banned substance on its label.  Boxers should not use supplements unless they have someone on their team who is very familiar with WADA protocol.  Alternatively, they can reach out to VADA or an affiliated organization who can answer any questions about the supplement.  Things like Vitamin B12 shots are very common in the sport but unless you are dealing with a medical professional who is well-versed in the WADA code, it's not something you should do on your own.
  • It obviously hurt Molina quite a bit that he had no legal representation and presented no evidence.  Even though he had some very bad facts against him, a competent doping lawyer probably could have gotten the suspension reduced down to 20 months or lower. 
  • Adjudication of this case was ridiculously slow by UKAD.  The decision does not go into the specifics of when Molina was notified of his positive test but he gave the sample in the early morning of December 11, 2016.  They apparently interviewed him in September 2017 and then provisionally suspended him in late October 2017.  His appeal was not adjudicated until late May 2018.  That's nearly 18 months after he gave his sample.  That's way too much time.  Contrast that with how quickly Canelo's case was resolved (sample given in February, settled in April).  There were folks who complained that Canelo's case dragged on too long - no comparison to Molina's.
See NAPD opinion below:

Friday, May 11, 2018

Golovkin and Derevyanchenko Battle Over IBF Exception - Title Likely At Stake

Counsel for Unified Middleweight Champion Gennady Golovkin and IBF No.1 mandatory contender Sergiy Derevyanchenko (Derev) have submitted their arguments to the IBF on an appeal made by Golovkin's team of the Exception the IBF issued on April 27 and clarified on May 1.  Golovkin is being represented on appeal by veteran boxing attorney Patrick English.  Derevyanchenko is repped by DiBella Entertainment's counsel Alex Dombroff.

The IBF's Exception allowed Golovkin to fight Vanes Martirosyan on May 5 and still retain his IBF title even though the IBF refused to sanction the bout.  The Exception also gave Golovkin 90 days from May 5 within which to fight Derev (deadline Friday, August 3, 2018).  The May 1 clarification left open the possibility that Golovkin could fight a unification bout with Canelo (?!) that would not require an exception.  This appears to be an error in the clarification as Canelo does not hold a title belt of a sanctioning body recognized by the IBF (only the WBA, WBC and WBO are so recognized).  Presumably, Golovkin could sneak in a fight with WBO Champion Billy Joe Saunders though ahead of Derev.

Nonetheless, Golovkin's counsel argued that IBF Rule 11G allowed him as the "affected participant" of a granted Exception the right to appeal.  Counsel further argued that the IBF misconstrued the application for Exception as one to avoid the mandatory obligation, when in fact, it was solely to allow the unsanctioned bout.

One of the main points Golovkin's counsel tried to drive home was that unified champions make mandatory defenses using a rotational system where each sanctioning body's mandatory is made in turn and the traditional time limits on mandatory defenses defer to that system.  Counsel argued that the IBF's mandatory is not due as the WBC is next.  Because the Canelo bout was delayed, the WBC mandatory is still the next one due.  Even if the Canelo bout had taken place on May 5, counsel reasoned that IBF Rule 5E states "the mandatory due date of the IBF Champion will be nine (9) months from the completion of the mandatory bout for the World Organization ahead of the IBF in line."

Golovkin's counsel also argued that the 90-day deadline violates IBF rules for the timing of negotiations and purse bids as the combined time allotted in the rules would exceed 90 days.  Counsel also noted that Golovkin is an innocent party who should not be punished for Canelo's sins.

In their reply papers, Derev's counsel argued that Golovkin did not have standing to appeal under Rule 11G as the "affected participant" referred to in the rule is Derev, not Golovkin.  Rule 11C refers to an "applicant" and an "affected participant" and counsel noted that the IBF reached out to Derev to allow him to respond to the application for Exception, thus designating Derev the "affected participant".

Beyond the standing issue, Derev's counsel disputed that the WBC mandatory was still due in the rotational system and not the IBF's.  Counsel argued that Canelo was the WBC mandatory and when he was rendered unavailable, Golvokin was allowed by the WBC to fight Martirosyan instead.  If the WBC were to get a second bite at the mandatory apple, there is a real possibility that it can be delayed again, in which case Derev would be forced to wait even longer.  Counsel argued that this is just a thinly veiled attempt to preserve the lucrative Canelo rematch without having to satisfy the IBF mandatory obligation.

Derev's counsel then addressed the alleged violation of IBF rules by the Exception's 90-day deadline.  Counsel pointed out that under Rule 11D, the IBF Board had discretion to determine "what conditions shall apply" in deciding the Exception.  Counsel also cited previous Exceptions where the Board had set similar 90-day deadlines.  Counsel also gave an example where Golovkin fought twice within a 90-day span on HBO to demonstrate the ability to make the fight within those time constraints.

Derev's counsel concluded by arguing that Derev is also an innocent party and should not have to wait any longer to receive his shot.  Counsel also argued that Golovkin is not entitled under IBF rules to receive two Exceptions to avoid his mandatory obligation.

The hearing to decide Golovkin's appeal is scheduled for May 22.

See Golovkin's Letter below:


See Derevyanchenko's Letter below:

Wednesday, May 9, 2018

Boxing Podcast With Attorney Rick Collins

My guest on this podcast is Rick Collins, a founding partner at the law firm of Collins, Gann McCloskey & Barry.  Rick practices in the area of sports nutrition and PEDs and is one of the foremost attorneys in the area of anti-doping law.   

We spoke about the recent doping cases involving Canelo Alvarez and Alexander Povetkin, as well as what an ideal anti-doping program in boxing would look like.  It was a great conversation - enjoy!

To check out Rick's site that tracks developments in doping law go to www.steroidlaw.com.  You can look Rick up at his firm Collins, Gann McCloskey & Barry.

Enjoy the podcast.  You can listen to it on Soundcloud or subscribe to the podcast on either iTunes or Stitcher.  Please leave a comment or a rating, I would very much appreciate it.

Tuesday, May 1, 2018

District Judge Denies Shane Mosley's Summary Judgment Motion in Dispute with Bobby Hitz Promotions

Federal District Judge Michael Fitzgerald of the Central District of California recently denied Shane Mosley and his promotional company GoBox Promotions, Inc.'s ("GBP") Summary Judgment motion in their dispute with Bobby Hitz' promotional entity, Hitz Entertainment Corporation ("HEC"), over cruiserweight prospect Dimar Ortuz' promotional rights.

Recall that HEC filed its complaint in February 2017 alleging that Mosley and GBP had tortiously interfered with HEC's promotional contract ("Promo") with Ortuz.  HEC had allegedly given Ortuz permission to fight on a reality TV show called "Knockout" where Mosley served as a trainer.  As HEC was negotiating with the TV show's representatives, Mosley allegedly promoted an Ortuz fight on the Mosley-Mayorga PPV undercard, as well as two subsequent Ortuz bouts, without HEC's permission.

The Court denied Mosley's motion as to both of HEC's causes of action, tortious interference with contractual relations ("TICR") and tortious interference with prospective business advantage ("TIPBA"), on the basis that HEC had established a dispute of material fact.  The Court issued a caveat on the TIPBA claim that HEC "offered an extremely narrow basis for finding the alleged conduct was independently tortious.  Indeed, so narrow . . . that the claims have become virtually duplicative.  As a technical matter, both claims survive this Motion, but the Court does not intend to give HEC two bites at the apple.  It is highly unlikely that HEC will be permitted to recover on both claims."

Mosley attacked HEC's TICR claim on the basis that HEC did not have a valid contract with Ortuz.  Mosley claimed that HEC materially breached the Promo by not offering Ortuz the requisite number of bouts per year as the offers had to specifically "be in writing and include the name of the proposed opponent and the gross purse amount."  Mosley argued that HEC's material breach of the Promo would invalidate the contract and excuse any of Ortuz' subsequent breaches of fighting for GBP.

The Court found that even if HEC technically did not make the requisite amount of offers in writing, as HEC claimed to make some verbal offers, this was not a material breach.  The Court stated, "at the very least, failure to make an offer in writing (as opposed to verbally) or to state the purse amount in the offer does not seem to be the kind of breach regarding which 'reasonable minds cannot differ' as to materiality."

The Court also did not buy Mosley's argument that HEC had "unclean hands" and tried to profit off of Ortuz' participation in the GBP promoted fights.  Thus, the Court denied Mosley's Motion as to the TICR claim.

The Court also found that HEC's TIPBA claim held up because there was a dispute of material fact as to whether Mosley and GBP also interfered with the contract between Ortuz and the TV producers of "Knockout".

See Opinion below:

Tuesday, April 24, 2018

Official Boxing Esq. World Boxing Ratings - April 2018

Presenting the April 2018 Boxing Esq. World Boxing Ratings:

Movements:

Heavys – Dillian White moved from 7 to 6 with crushing win over Lucas Browne.  Browne falls from 17 to 25.  Agit Kabayal moves from 19 to 17 with win over Miljan Rovcanin.

Cruisers – Mateusz Masternak moves from 19 to 14 with stoppage win over Youri Kalenga.  Kalenga moves from 25 to out.  Danny Green moves from 24 to out due to inactivity.  Arsen Goulamirian and Roman Golovashchenko move up to 24 and 25 respectively.

Light Heavys - Karo Murat moves up from 13 to 11 with win over Travis Reeves.  

Super Middles - James DeGale moves from 8 to 3 with win over Caleb Truax.  Truax falls from 7 to 8.  Tyron Zeuge moves from 16 to 14 with TKO win over Isaac Ekpo.

Middles - Canelo Alvarez drops from 2 to out due to suspension.  Avtandil Khurtsidze drops from 11 to out due to inactivity.   Walter Kautondokwa and Jason Quigley move up to 23 and 24 with wins.

Jr. Middles - Jarrett Hurd seizes the top spot and moves from 3 to 1 with great win over Erislandy Lara.  Lara falls from 1 to 3.  Michel Soro moves up from 11 to 10 with win over unbeaten John Vera.  Sam Eggington enters at 24 with win at 154.  Roberto Garcia drops from 25 to out.

Welters – Keith Thurman moves from 1 to out due to inactivity.  Amir Khan moves from inactive to 9 with comeback win over Phil LoGreco.  Luis Collazo and Andre Berto drop from 12 and 13 to out due to inactivity.  Sam Eggington goes from 17 to out due to move up to 154.  Victor Ortiz, Cesar Miguel Barrionuevo and Carlos Ocampo enters at 23, 24, and 25.

Jr. Welters – Ismael Barroso moves from 18 to out due to move back to 135.  Yves Ulysse, Jr. enters at 25.

Lights – Jose Pedraza enters at 13 after move up to 135 and win.  Aik Shakhnazaryan from 14 to out due to move to 140.  Ismael Barroso enters at 15 after move down from 140.  Lewis Ritson from 25 to 22 with win over Scott Cardle.  Daud Yordan enters at 25 with win over unbeaten Pavel Malikov.  Sharif Bogere and Hurricane Futa drop from 23 and 24 to out.

Jr. Lights - Jose Pedraza moves from 12 to out due to move up to 135.  Kenichi Ogawa moves from 13 to out due to suspension.  Jesus Cuellar moves from inactive to 13 though he was stopped by Gervonta Davis.  Evgeny Chuprakov enters at 25.

Feathers - No movements.

Jr. Feathers – Yusaku Kuga moves up from 21 to 17 with win over Ryo Kosaka.

Bantams – Omar Narvaez moves down two spots from 7 to 9 after non-effort against Zolani Tete.  Michael Dasmarinas enters at 12 with stoppage win over Karim Guerfi.  Guerfi drops from 16 to 20.  Suriyan Kaikanha drops from 21 to out for inactivity.

Super Flys -  Jose Martinez drops from 25 to out due to gift draw.  Miguel Gonzalez enters at 25.

Flys – Christopher Rosales moves from 12 to 2 with TKO win over Daigo Higa.  Higa drops from 2 to 4.  Francisco Rodriguez moves from 11 to out for move up to Super Fly.  Martin Tecuapetla drops from 22 to out as I missed his December loss to Julio Cesar Martinez Aguilar.  Giemel Magramo enters at 25.

Jr. Flys – Japhet Uutoni drops from 21 to out due to inactivity.  Suryan Satorn goes from inactive to 21 with win over Siridech Deebook.

Straws – No movements.

Saturday, April 21, 2018

World of Boxing and Povetkin Win Summary Judgment Motion, Awarded $4.3M in Escrow in Wilder Dispute

In an opinion that stunned the Deontay Wilder camp, Magistrate Judge Gabriel Gorenstein held that in spite of a jury verdict that Alexander Povetkin had ingested Meldonium after January 1, 2016 and though he undisputedly tested positive for Meldonium on April 27, 2016 in a VADA random test, Povetkin did not breach the Bout Agreement (BA) and thus denied Wilder's Motion for Summary Judgment on his breach of contract claim.  Further, because there was no breach of the BA, Wilder's $4.3 million escrowed purse for the aborted Wilder-Povetkin bout was returned to Povetkin's promoter World of Boxing (WOB).  Wilder presumably will appeal the decision.

BACKGROUND

Wilder was scheduled to make a mandatory defense of his WBC Heavyweight title against Povetkin in mid-2016.  The negotiations for the fight were contentious and the bout went to purse bids.  WOB won the purse bid in the amount of $7.15M.  Though the purses were decided, there still needed to be a final BA and once again the parties had trouble coming to an agreement.  One of the big points of contention was the language over whether the promoters would be required to "produce" their respective fighters for the fight.

Eventually the WBC was brought in to mediate and ultimately drafted the BA.  The final BA provided that WBC rules would govern the "event in its entirety and shall be binding on all parties . . . [i]n the event the Parties incur any dispute or controversy with respect to this contract, all parties understand and agree to be bound by the Rules and Regulations of the WBC."  The WBC's rules regarding PEDs state that "[b]oxers . . . should not take, ingest, or have administered . . . any substance . . . that may enhance or reduce the boxer's performance."  The rules leave the WBC with sole discretion to determine penalties and provide that they do not "adhere to a 'strict liability' standard in anti-doping matters."

The parties also entered into an Escrow Agreement (EA) for Wilder's purse, which is standard in international title fights.  The EA provided that the funds would be disbursed to Wilder after the fight if he submitted an affidavit stating the fight happened along with a copy of an article from www.fightnews.com.  Similarly, if the fight did not happen, WOB would get the escrow funds if they submitted an affidavit to that effect, plus an article from www.fightnews.com.  The escrow agent was forbidden from disbursing the money if either party objected to the disbursement in "good faith".  If the objection was not in "good faith" there was a liquidated damages penalty of $2.5M.

The parties agreed to VADA testing before the fight.  Povetkin's first three tests came back negative but his fourth test on April 27, 2016 came back positive at 70 nanograms per milliliter for Meldonium.  VADA informed the WBC on May 13, 2016 of the positive test and the WBC announced that they would conduct "an in-depth investigation of this matter."  Meldonium was placed on WADA's Prohibited List on January 1, 2016.  However, in a June 30, 2016 notice, WADA stated that if the concentration in a sample were found to be less than one microgram per milliliter, there would be a finding of no fault for any sample taken between January 1 and September 30, 2016.  Povetkin's sample was below one microgram per milliliter.

Wilder was in London preparing for the bout when Povetkin's positive test was made public.  Wilder's lawyer, John Wirt, emailed the WBC on May 14, stating that Wilder considered WOB and Povetkin in breach of the BA.  On May 15, the WBC announced that they were postponing the fight and would continue to investigate the case.  Wirt emailed the escrow agent on the same day and objected to any disbursement of the escrow funds.  Wilder's side considered the fight cancelled, not postponed, and stated so in the press.  Ultimately, in June 2016 both Wilder and WOB/Povetkin would file suits against each other.  Wilder sued for breach of both the BA and the EA.  WOB/Povetkin sued for breach of the BA and EA, breach of the implied covenant of good faith and fair dealing and also defamation.

The WBC allowed Wilder to make an optional defense against Chris Arreola on July 16, 2016. Wilder won but broke his arm and tore a bicep in the fight.  He was sidelined until January 2017.  On August 17, 2016, the WBC announced its ruling on Povetkin's failed drug test.  It stated it had "called the Bout off . . . until the ongoing investigation [] concluded."  The WBC ruled that it was not possible to "ascertain that Mr. Povetkin ingested Meldonium after January 1, 2016."  This ruling was presumably based on WADA's statement that samples below one microgram were "no fault" findings if collected between January 1, 2016 and September 30, 2016.

Wilder appealed the WBC's ruling and the WBC then stated that if Wilder prevailed at trial, the WBC would afford Povetkin the opportunity to show that the trial's result was not based on a finding that he ingested Meldonium after January 1, 2016.

On December 23, 2016, Judge Gorenstein ordered that the trial be limited to one issue - whether Povetkin ingested Meldonium on or after January 1, 2016.  In February 2017, the trial was held and after hearing expert testimony from both sides, the jury found that Povetkin had ingested Meldonium after January 1, 2016.  Povetkin/WOB filed a motion for Judgment as a Matter of Law but the motion was denied on April 26, 2017.

In the meantime, Povetkin had a bout for the interim WBC title scheduled for December 17, 2016.  The bout was postponed, once again due to a positive drug test, this time for Ostarine.  The WBC then issued a new ruling on March 2, 2017, suspending Povetkin indefinitely in acknowledgement of both the jury's verdict and his positive test for Ostarine.

Povetkin appealed the WBC's ruling and on November 7, 2017.  Once again the WBC flip-flopped and stated that "notwithstanding the specific finding of the jury in the New York Litigation, the WBC continues to adhere to its ruling of August 17, 2016 that it is not possible to ascertain that Mr. Povetkin ingested Meldonium after January 1, 2016."  The WBC amended Povetkin's indefinite suspension to a one year suspension from the date of his positive test for Ostarine. 

Both Wilder and Povetkin/WOB filed summary judgment motions after the conclusion of trial in this case in late 2017.

DECISION

The Court addressed the breach of contract claim against Povetkin first.  The Court immediately acknowledged that the jury trial conclusively determined that Povetkin ingested Meldonium after January 1, 2016.  It also acknowledged that Povetkin tested positive on April 27, 2016 during VADA's testing.  The Court then dropped the bomb that neither of these events constituted a breach of the BA.

The Court, in essence, held that because the parties submitted to the whims of the WBC's anti-doping rules, which leave penalties solely in the discretion of the WBC, any decision the WBC made was dispositive.  The WBC's final decision on November 7, 2017 that, in spite of the jury verdict to the contrary and Judge Carter's affirmation of that verdict, it was not possible to determine whether Povetkin ingested Meldonium after January 1, 2016, doomed Wilder's breach of contract claim.  The Court cited the WBC's rules of not applying a strict liability standard and their discretion to determine whether a boxer was responsible for violating its anti-doping policy. 

The Court rejected Wilder's argument that the WBC did not have discretion to decide whether Povetkin violated the BA because the SDNY Court was the forum designated for dispute resolution.  The Court held that the forum selection clause did not address any issue of contract interpretation and the parties ceded substantial control over performance of the BA to the WBC. 

The Court also rejected Wilder's argument that the Court had stated in a previous hearing that the WBC did not retain discretion to decide if Povetkin violated the anti-doping provisions of the BA.  At the aforementioned hearing, The Court had rejected WOB's argument that submitting the ingestion question to the jury would amount to an "advisory opinion".  The Court reasoned then that ingestion was an "issue in the case" and that the jury's verdict would be "binding".  The Court now held that though Wilder asserted that a verdict of ingestion proved a breach of contract, the Court now rejected this argument following the briefing in the case.

Thus, the Court granted Povetkin and WOB's motion for summary judgment on Wilder's breach of contract claim.

The Court then examined Wilder's breach of contract claim against WOB and also found no breach.  Though WOB was contractually obligated by the BA to promote the bout and provide Povetkin's services, both of which they failed to do, the Court reasoned that the BA gave the WBC "complete power over the Bout's staging."  The Court cited the BA's provisions that gave the WBC the ability to withdraw sanction of the bout and its authority to cancel or change the date of the bout as evidence of control.  The Court stated that the WBC's postponement of the bout on May 15 after Povetkin's positive test superseded WOB's obligation to promote the bout on May 21.  

The Court then distinguished a very similar case that it had decided just four years ago, World of Boxing LLC v. King.  In that case, Guillermo Jones tested positive for a PED on the eve of a WBA Cruiserweight title bout.  WOB was the promoter of Denis Lebedev, Jones' opponent for the match.  WOB sued Jones' promoter, Don King, on the very same grounds Wilder sued WOB, breach of contract for failing to produce the fighter due to a positive drug test.  The Court in King, found that King had breached the bout agreement because the WBA rules, which were incorporated by the bout agreement, required suspension from the ratings of any boxer who tested positive and because Jones had previously tested positive for PEDs, it was foreseeable he'd do so.

Here, the Court reasoned that the BA gave the WBC discretion to determine if a doping violation occurred and to make decisions about whether the bout would be held on the date in the BA.  For those reasons, the Court found that WOB did not breach the BA and granted WOB's summary judgment on Wilder's breach of contract claim.

The Court dismissed Povetkin and WOB's breach of contract claims against Wilder because of lack of causation.  The Court found that any damages suffered were attributable to Povetkin's positive test and the WBC's postponement of the bout and failure to reschedule it.  Because the WBC unequivocally stated that Povetkin's positive test was their reason for postponing the bout, any action by Wilder was secondary to the that.  Thus, the Court granted Wilder's motion for summary judgment on Povetkin and WOB's claim for breach of contract.

The Court granted Wilder's summary judgment motion on Povetkin and WOB's breach of the implied covenant of good faith and fair dealing for similar reasons.  The Court found that nothing in the record supported an inference that the bout was postponed or canceled due to any action by Wilder. 

The Court then addressed the escrow fund claims as both parties sought summary judgment to take possession of the $4,369,365 in escrow that was supposed to be Wilder's purse.  The Court ruled that WOB was entitled to the escrow funds because Wilder had not proven a breach of the BA, which was his reason for objecting to the return of the funds to WOB post-bout cancellation.  The EA provided that if the bout did not take place, the escrow would be sent back to WOB.  Thus, the Court awarded the $4,369,365 in escrow to WOB.

The Court also denied WOB's claim for liquidated damages under the EA.  The Court found that WOB failed to carry its burden of proving that Wilder's objections to release of the escrow back to WOB were not made in good faith.  The Court found that the EA did not make any limitations on the grounds that an objection could be made, only that it must be made in good faith. 

The Court had previously stayed WOB's defamation claims and did not opine on them here.

TAKEAWAYS

This was a case that appeared to be mishandled by many of the entities involved including WADA, the WBC and the Court for the Southern District of New York.  

WADA issued two modifications to the placing of Meldonium on the Prohibited List that ultimately changed the outcome of the case.  They moved the goalposts on what was considered a "no fault" test from: 1) no threshold for a violation to more than one microgram per milliliter; and 2) absolved positives from samples taken between January 1, 2016 to September 30, 2016.  This wrecked havoc on this case.

The WBC's indecisiveness and constant bending to the whims of each party also created complete uncertainty in this case.  The fact that they ignored a jury verdict that Povetkin ingested Meldonium and maintained that they could not "ascertain whether Povetkin ingested Meldonium" seems like an injustice to Wilder.

The SDNY Court seemingly bungled by ordering a limited trial on a single issue in what was a fairly complex case and then blatantly ignoring the verdict and ruling there was no breach of contract.  Why have a trial on ingestion if it didn't pertain to breach of the contract, which was the crux of the case?

This case exposes the fractured nature of the sport of boxing, especially in regards to the consistency of its anti-doping regulations.  In 2014, the SDNY held a promoter responsible for breach of contract because he couldn't produce his fighter due to a positive for a PED on the eve of a title bout.  Part of the reason was because the WBA rules provided for an automatic suspension of a fighter who tested positive.  In 2018, the SDNY held that a promoter was not in breach of contract even though his fighter also could not be produced for the bout due to a positive PED sample.  The reason being the WBC drafted the BA and incorporated its rules which do not adhere to a "strict liability" policy in regards to positive PED tests and give them great discretion in deciding penalties.

Boxing's anti-doping situation is clouded by different sanctioning bodies, different standards, and different results even with similar sets of facts.  Imagine if GGG were to sue Canelo for breach of contract over his positive test.  Which rules would apply for a unified champion - WBA, WBC or IBF?  They all apply different standards in regards to anti-doping policy.

It would be nice if the major promoters got together and formed a boxing league and set out a clear and uniform set of anti-doping rules, similar to the UFC's use of USADA.  This would bring some clarity to what is currently a messy state of inconsistency.

See the opinion below:



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