Manny Pacquiao scored a knockout in court after a judge overturned and vacated a verdict against him in a lawsuit filed by Paradigm Sports Management, a prominent agency that also represents UFC superstar Conor McGregor.
Judge Walter P. Schwarm issued his decision on Aug. 12 in court documents obtained by MMA Fighting on Monday. The judge stated that the “court finds for Mr. Pacquiao on the cross-complaint’s declaratory relief cause of action and declares the contract void due to illegality.”
Basically the decision boiled down to Audie Attar — Paradigm’s founder and CEO — not holding a management license issued by the California State Athletic Commission at the time the contract was signed to represent Pacquiao.
The judge didn’t dispute that Pacquiao signed the agreement to have Paradigm represent him, but “Mr. Attar’s testimony supports that [Paradigm Sports Management] did not have the required license … based on the evidence, the court finds that Mr. Pacquiao has demonstrated, by a preponderance of evidence, that [Paradigm Sports Management] did not have the required license under [California law].”
Based on those findings, the court ruled that “the contract is illegal” and “unenforceable.”
As a result, the judge overturned the jury’s verdict, which originally awarded $5.1 million damages to Paradigm after the company alleged that Pacquiao was in breach of contract after signing with the agency to represent him for future fight negotiations but ultimately allowing others to continue negotiating for him for bouts. Paradigm also paid Pacquiao millions in a signing bonus to join the agency, which was part of the basis for the lawsuit.
“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,” Pacquiao’s attorney Jason Aniel said in a statement to The Philippine Star.
“This decision negates the jury’s findings back in May of 2023. We thank the court’s time and effort in this matter. Mr. Pacquiao thanks his fans for their patience while the court fully resolved all the legal issues.”
All told, Pacquiao was on the hook for more than $8 million, including attorney fees, due to Paradigm from the jury’s verdict, which was issued back in 2023.
Now that decision has been vacated.
