A judge overturned a $5.1 million verdict against Manny Pacquiao in a lawsuit filed by Paradigm Sports Management, declaring the contract void due to the agency’s lack of a required management license.
Manny Pacquiao scored a knockout in court. A judge overturned and vacated a verdict against him in a lawsuit filed by Paradigm Sports Management, a prominent agency representing UFC superstar Conor McGregor.
Judge Walter P. Schwarm issued his decision on Aug. 12. Court documents obtained by MMA Fighting on Monday revealed the details.
The judge stated that the “court finds for Mr. Pacquiao on the cross-complaint’s declaratory relief cause of action.” He declared the contract void due to illegality.
Basically, it boiled down to Audie Attar, Paradigm’s founder and CEO. He didn’t hold a management license from the California State Athletic Commission when the contract was signed.
The judge didn’t dispute that Pacquiao signed the agreement. However, “Mr. Attar’s testimony supports that [Paradigm Sports Management] did not have the required license.”
Based on the evidence, the court found that Pacquiao demonstrated, by a preponderance of evidence, that Paradigm lacked the necessary license under California law.
Consequently, the court ruled that “the contract is illegal” and “unenforceable.”
As a result, the judge overturned the jury’s verdict. Originally, it awarded $5.1 million in damages to Paradigm.
Paradigm alleged that Pacquiao breached the contract after signing with them for future fight negotiations but allowed others to negotiate instead.
They also paid Pacquiao millions as a signing bonus. This was part of the basis for their lawsuit.
Pacquiao’s attorney, Jason Aniel, spoke to The Philippine Star. “After hearing Paradigm Sports Management’s objections to the tentative decision, the court decided the contract that Paradigm sought to enforce Mr. Pacquiao was illegal as Paradigm was not properly licensed.”
“This decision negates the jury’s findings back in May of 2023,” Aniel added. He thanked the court for its time and effort in this matter.
“Mr. Pacquiao thanks his fans for their patience while the court fully resolved all the legal issues,” Aniel concluded.
Pacquiao was initially on the hook for more than $8 million, including attorney fees. This stemmed from the jury’s verdict issued back in 2023.
Now, that decision has been vacated.