Golden Boy looking for $50M from Richard Schaefer

Golden Boy looking for $50M from Richard Schaefer

ESPN.com’s Dan Rafael has reported that sources close to the litigation have informed him that Golden Boy Promotions has filed an arbitration and is looking for recently resigned CEO Richard Schaefer to pony up $50 million.

Schaefer resigned a few weeks ago and still owns about 8% of GBP stock according to Rafael.

Schaefer had a falling out with president and co-founder Oscar De La Hoya and though the reason for the suit hasn’t been shared, it’s clearly in connection to the fact that under Schaefer’s watch, Golden Boy failed to secure long term contracts with a number of fighters they had been building on their shows. All of these fighters are handled by power broker Al Haymon.

One must wonder how this happened for so long without anybody saying anything about it at the company. It puts them in a position of weakness.

This should be an interesting story to follow as new information emerges.

-Mark E. Ortega / @MarkEOrtega