Manny spared IBO sanction fee

MANILA, Philippines – Manny Pacquiao was spared from paying his share of the sanction fee amounting to $50,000 for challenging IBO lightwelterweight champion Ricky Hatton in Las Vegas last May 2 as Top Rank picked up the tab which was described by a fight source as “extremely reasonable” compared to the rates of other governing bodies.

The source said governing bodies like the WBC, WBA and IBF charge a non-negotiable rate of three percent of a fighter’s purse so that in Pacquiao’s case, he would’ve had to cough up $360,000 for the Hatton bout since his contract stipulated a $12 million guarantee. In some cases, the sanction fee is split 50-50 by the fighter and promoter.

A clause in Pacquiao’s contract for the fight stipulated that his share of the sanction fee would be covered by Top Rank.

Since Hatton’s guaranteed purse was $8 million, he would’ve paid $240,000. In all, Pacquiao and Hatton would’ve coughed up a combined $600,000 in sanction fees – if they fought for any other championship.

It wasn’t certain how much the IBO charged as a total sanction fee for the Pacquiao-Hatton bout. In the IBO website, a breakdown of its sanction fees for a world title fight where the purses are in excess of $1 million lists $7,500 for the promoter, $2,500 for the referee, $2,000 for each judge and three percent of the fighters’ purses. However, it is usually the practice that when the purses are in extraordinarily large amounts, a negotiation is made to tone down the sanction fees which end up considerably less than three percent of the fighters’ prize money.

The Florida-based IBO is an independent organization that employs computerized ratings, is not controlled by promoters, limits its licensed pool to 30 judges and 20 referees and strictly abides by the provisions of the Muhammad Ali Boxing Reform Act where the priority principle is full disclosure.

“The IBO is a lesser-known organization that isn’t greedy,” said a source. “There is no real financial benefit to the fighters if they pay a sanction fee since in boxing today, a title is meaningless as the fighters themselves bring in the revenues, regardless of recognition by any governing body.”

In Pacquiao’s case, boxing adviser Michael Koncz said gaining recognition by a governing body is an integral part of building a legacy.

“Manny’s building a legacy and to become the only fighter in history to win world titles in seven weight divisions would cement his legacy,” said Koncz.

There are only five fighters in history to win six titles in different classes – Pacquiao, Oscar de la Hoya, James Toney, Hector Camacho and Tommy Hearns. But no one has ever captured seven crowns in seven divisions.

Pacquiao has a chance to make history if he fights and beats WBO welterweight champion Miguel Cotto who is touted to be his next opponent. Annexing the welterweight (147-pound) title would install Pacquiao as the only fighter ever to win seven championships in as many classes.