Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Boxing promoter allegedly used exclusive deals to suppress competition in promotion market, (Sep 2, 2015)

By Linda O’Brien, J.D., LL.M.

A professional boxing promoter and executives of two casinos conspired to monopolize the boxing promotion market — access to the essential facilities, ticket selling, and professional fighters — by entering into exclusive non-compete deals to foreclose competition, according to a complaint filed in the federal district court in Reading, Pennsylvania (Joey Eye Boxing, LLC v. King’s Promotions LLC, September 1, 2015).

Boxing promoter and trainer Marshall Kauffman formed King’s Promotions LLC, also known as King’s Boxing, in 1994 to promote professional and amateur boxing matches in the mid-Atlantic region. Joey Eye Boxing, LLC, formed by Joey Intrieri, is a licensed boxing promoter in Pennsylvania.

According to the complaint, in December 2010, Intrieri formed a partnership with David Feldman, owner of Xtreme Fight Events (XFE), to hold boxing shows at Harrah’s Casino. As part of the arrangement, Intrieri received a cash payout for all of his boxing shows held at the casino. Feldman asked Intrieri to persuade Harrah’s to allow him to hold mixed martial arts (MMA) events at the casino through his company, XFE. Subsequently, Harrah’s granted XFE the exclusive rights to hold MMA promotions at its casino.

In an effort to assume complete control of boxing and MMA events at Harrah’s Casino, Feldman allegedly made misrepresentations to casino executives about Intrieri, attempting to disparage Intrieri’s reputation and have him removed from the casino. Feldman also allegedly stated that Intrieri failed to pay him the portion owed from the boxing events held at the casino and asked that Harrah’s pay all event proceeds directly to Feldman instead of Intrieri. As a result of the misrepresentations, Intrieri no longer received any share of the income from those boxing events and was completely banned from Harrah’s Casino, the complaint alleges.

Additionally, Feldman formed a partnership with King’s Promotions and Cage Fury Fighting Championships to hold boxing and MMA events at a second casino — Valley Forge Casino. After Feldman prevented Joey Eye Boxing from putting on shows at Valley Forge, Feldman and King’s Promotions were left as the exclusive providers of boxing events at both Harrah’s and Valley Forge.

The complaint claimed that casino boxing events have become very popular and profitable, to the extent that the casinos are now the only viable venues to hold boxing promotions in the Philadelphia region. Failure to have access to the casino venues results in lower economic feasibility regarding venue price and prevents competing promoters from obtaining services of the top drawing fighters that are necessary to fund event shows, according to the plaintiff. These fighters will opt to fight for promotions located in the casinos and not in promotions located outside of those casinos.

The defendants have no justifiable reason to deny access to the top venues other than to eliminate competition and restrain trade, the lawsuit claimed. Given the inexhaustible resource of fighters who have signed exclusive deals with the defendants and the venues they have monopolized, it is impossible for the defendants to contend that the plaintiff’s access to one of those venues would interfere with their ability to produce a product for their customers, the plaintiff argued. The defendants could allow the plaintiff access to these facilities without affecting their own self-interest. On the contrary, the casinos would financially benefit from allowing the plaintiff’s show to take place under the same terms that are offered to the defendants, the complaint states.

The plaintiff asserts claims for refusal to deal and attempted monopolization in violation of Sections 1 and 2 of the Sherman Act. The action seeks injunctive relief, compensatory damages, punitive damages, treble damages, pre-judgment interest, costs of suit, attorneys’ fees, and any other just and proper relief.

The case is No. 5:15-cv-04914-LS.

Attorneys: A. Jordan Rushie (Rushie Law) for Joey Eye Boxing, LLC.

Companies: Joey Eye Boxing, LLC.; King’s Promotions LLC

News: Antitrust PennsylvaniaNews