Holloway v. King

361 F. Supp. 2d 351, 2005 U.S. Dist. LEXIS 4803, 2005 WL 697954
CourtDistrict Court, S.D. New York
DecidedMarch 28, 2005
Docket04 Civ. 7384(LAK)
StatusPublished
Cited by7 cases

This text of 361 F. Supp. 2d 351 (Holloway v. King) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holloway v. King, 361 F. Supp. 2d 351, 2005 U.S. Dist. LEXIS 4803, 2005 WL 697954 (S.D.N.Y. 2005).

Opinion

MEMORANDUM OPINION

KAPLAN, District Judge.

Rory Holloway and John Horne, formerly managers for the boxer Mike Tyson, brought this action against promoter Don King and various corporate entities he controls (collectively “King”) alleging that King breached a 1995 oral agreement to give each of the plaintiffs 10 percent of all of King’s earnings from exploiting Tyson’s fights. 1 King has moved to dismiss pursuant to Rules 12(b)(6) and 9(b).

Facts

A. The Complaint

Mike Tyson was a world heavyweight boxing champion. The complaint alleges that on or about August 16, 1994, Tyson and the plaintiffs executed a contract according to which “in exchange for plaintiffs’ services, skills, talents and expertise in the world of professional boxing, Tyson agreed to pay” each of the plaintiffs 10 percent of Tyson’s gross revenues. 2

*353 The complaint further alleges that on or about June 28, 1994, Tyson and King entered into an agreement (the “Promotion Agreement”) that granted King “the sole and exclusive right to promote Tyson’s bouts ... for the four year period following Tyson’s release from prison. If Tyson became champion, the contract could have been extended for an additional two year’s.” 3

We come next to the crux of the complaint, which is the allegation of an oral “Team Tyson Agreement”:

“On or about January 1995, KING, Tyson, HOLLOWAY and HORNE agreed that KING would receive 30% of Tyson’s purse and bonus money in exchange for giving Tyson, HOLLOWAY and HORNE 50%, 10% and 10% respectively, of all of KING’S and his controlled companies’ earnings from ALL of their worldwide promotion and exploitation of the Tyson fights. This was the ‘Team Tyson Agreement’ and it was an oral agreement.” 4

On March 20, 1995, King and Tyson entered into an agreement dated as of March 17, 1995 with SET Pay Per View and Showtime Networks Inc. (collectively, “Showtime”) giving Showtime and King the exclusive rights to stage and distribute Tyson’s fights during a three-year period that was to include ten fights (the “Showtime Agreement”). 5 Among other things, the Showtime Agreement provided that Kang and Showtime jointly would “(a) exploit (in accordance with the provisions of this agreement) all of the worldwide rights to [Tyson’s fights] ... and (b) share in the proceeds received from all such exploitation as provided [in the agreement],” 6 and that Showtime would pay King a $43 million signing bonus. 7

On May 24, 1995, King entered into an agreement 'with MGM Grand Hotel, Inc. and MGM Grand, Inc. (collectively, “MGM Grand”) giving MGM Grand the exclusive right to host the next six Tyson fights, all to take place before September 25, 1997 (the “MGM Grand Agreement”). 8 In connection with the agreement, MGM Grand advanced King $15 million in cash, sold him treasury stock for $15 million (the “MGM Grand Shares”), and guaranteed that the shares would be worth at least $30 million at the end of the agreement term. King was to repay the cash advance, but he was entitled to the gross receipts from ticket sales less certain expenditures (the “Net Gate”) for each of the six fights covered by the agreement. 9

On December 28,1995, Tyson, King, and the plaintiffs executed an agreement dated *354 as of March 17, 1995 (the “December 28, 1995 Agreement”) that provided in relevant part:

“This letter agreement will serve to set forth the terms and conditions of ‘Team Tyson’ to which we have agreed. Specifically, it sets forth the agreement among [King], Mike Tyson (‘Mike’), John Horne (‘John’) and Rory Holloway (‘Rory’) with respect to (i) [the Showtime Agreement] and (ii) [the MGM Grand Agreement].... ”
“With respect to the Showtime Agreement, (i) [King] hereby conveys, transfers and assigns to each of Mike, John and Rory, 50%, 10%, and 10%, respectively (each, a ‘pro rata share’), of (a) the $43 million Bonus ... and (b) [King]’s share of the remaining amounts allocated to [King] under [a clause of the Showtime Agreement giving King 50 percent of residual revenues] ... and (ii) Mike hereby conveys, transfers and assigns to each of [King], John and Rory, 30%, 10% and 10%, respectively, of each of the Tyson purses to which he is entitled under the Showtime Agreement. ...”
“With respect to the MGM Agreement, [King] hereby conveys, transfers and assigns to each of Mike, John and Rory, his pro rata share of (i) the $15 million Advance ..., (ii) [the MGM Grand Shares] ..., (in) the first $5 million of Net Gate from each of the first three Tyson Events ..., (iv) the Net Gate, if any, from each Tyson Event in excess of the Net Gate which is included in ‘Gross Revenue’ (as defined in the Showtime Agreement) ..., and (v) the $30 million dollar Guarantee.”
“This letter agreement supersedes all prior agreements, whether written or oral ... between or among any of the parties hereto with respect to the subject matter contained herein and therein, and such agreement embodies the entire understanding among the parties relating to such subject matter.” 10

The complaint alleges that from 1995 to 1997, Tyson participated in six fights subject to the Team Tyson Agreement and that King received 30 percent of Tyson’s purse money for those fights. 11 Tyson allegedly repudiated the Team Tyson Agreement after his second fight with Evander Holyfield, which took place on June 28, 1997, and “fired KING as his promoter and fired HOLLOWAY and HORNE as his managers.” 12

According to the plaintiffs:

“Once the Team Tyson Agreement was repudiated in 1997, HOLLOWAY and HORNE ... realized that they had only received 10% (each) of the Tyson purses and the Showtime and MGM bonuses, and had not received any money as a result of KING’S and his controlled companies’ worldwide promotion and exploitation of the six Tyson fights that were fought pursuant to the Team Tyson Agreement.” 13

The complaint next alleges that from 1997 until March 2004, “HOLLOWAY and HORNE repeatedly and continuously” asked King for a full accounting of the promotion and exploitation earnings and for the. 10 percent each allegedly was promised under the Team Tyson Agreement, which King “repeatedly and continuously” assured the plaintiffs they would receive. 14 The plaintiffs further allege that:

*355

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Cite This Page — Counsel Stack

Bluebook (online)
361 F. Supp. 2d 351, 2005 U.S. Dist. LEXIS 4803, 2005 WL 697954, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holloway-v-king-nysd-2005.